Public Education Funding Discussed in Senate Finance Committee

Date Posted: 2/11/2025 | Author: Heather Sheffield
The Senate Finance Committee met Monday to discuss Article III of the state budget (Senate Bill 1), which focuses on public education. The committee received updates from the Legislative Budget Board (LBB) and agency staff from the School for the Deaf, the Texas Education Agency (TEA), Windham School District, Permanent School Fund Corporation (PFC), Teacher Retirement System (TRS), Optional Retirement System, and the School for the Blind and Visually Impaired.
TEA Commissioner Mike Morath testified on public school funding and the TEA appropriations in SB 1. The discussion centered on existing school funding and additional appropriations for tax compression, teacher compensation, and school safety. Morath recommended a mix of discretionary funding and targeted investments in programs with—in his words—“a proven impact on student success.” (You can see the slides presented here: TEA Presentation and LBB Presentation.)
As introduced, SB 1 allocates $332.9 billion in total funds and $151.6 billion in general revenue for the state budget. It includes $4.85 billion for increased public education funding, $3.5 billion for new property tax reductions, $1 billion for education savings account vouchers, and $400 million for enhanced school safety. Of the new education funding, $4.1 billion is designated for teacher raises, while $750 million would go to TEA for expansion of the Teacher Incentive Allotment (TIA). The $400 million for school safety is intended to fund enabling legislation aimed at doubling per-student and per-campus safety allotments from approximately $10 per student to approximately $20 per student. The bill also supports enrollment growth, and allocates $450 million to TRS-ActiveCare to help keep the increase in ActiveCare premiums at or below 10%, about half of what the increase would be without the funding.
ATPE Governmental Relations Director Monty Exter and ATPE Lobbyist Heather Sheffield testified in front of the committee regarding the TEA and TRS appropriations. Exter highlighted the need for the state to appropriate money for teacher certification and to address teacher pay. He also asked the senators to give districts programmatic and discretionary funding. Sheffield cautioned the committee about the LBB’s anticipation of higher payroll growth based on historical growth of 5% in public education given that approximately 60% of districts are facing deficit budgets and many are closing schools. ATPE also submitted written testimony to the committee. Watch the committee meeting here.


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