Senate Education K-16 Committee advances school finance bill

Date Posted: 5/21/2025 | Author: Heather Sheffield
At around 5:20 p.m. Monday, the Texas Senate Education K-16 Committee met briefly for about 24 minutes to discuss and vote on the updated committee substitute for House Bill (HB) 2. The bill moves forward from the committee to the floor with a vote of nine ayes and two committee members who were “present not voting.” Despite meeting to hear the committee substitute last week, a clean-up of sorts was still needed.
Although the Senate’s new committee substitute adds more detail and cleans up some errors, it remains quite different from the version of HB 2 sent over by the House. The House-passed version of HB 2 emphasized a larger increase to the Basic Allotment, while the new Senate substitute takes a more targeted approach, prioritizing compensation for some teachers and special education over across-the-board funding increases and with a significantly smaller increase to the Basic Allotment instead of more discretionary funding.
The Senate version includes $4.2 billion for teacher raises, with the amount tiered based on years of experience and district size. Educators in smaller districts could see raises of up to $10,000, while those in larger districts would receive up to $5,500. The new substitute also directs $1.3 billion toward special education funding, establishing a new service intensity model and offering districts $1,000 per student evaluation.
Other key provisions include grant programs of up to $270 million for teacher preparation, up to $677 million for early learning, and a $255 million increase to the small and mid-size district funding adjustments. However, the Senate plan only increases the Basic Allotment by $55 per student—far short of the House’s proposed $395 increase—and omits dedicated funding for fine arts.
Notably, the Senate substitute adds a requirement for districts to notify parents when a student is taught by an uncertified teacher, with a plan to phase out uncertified instruction in core subjects by 2030. The Senate version also completely removes the fine arts allotment as well as pre-k funding for students with disabilities, and it increases the amount of facilities funding for charter schools to be more than ISDs receive.
Although many applaud the Senate’s focus on teacher pay and special education, others have raised concerns about its minimal increase to the Basic Allotment and lack of additional funding for support staff. ATPE Governmental Relations Director Monty Exter spoke with Chron.com earlier this week about educators’ concerns: “[Educators] are concerned that while they might see a raise, the current Senate draft of HB 2 could leave districts in a position to still have to reduce staffing, cut programs, and close schools, while also leaving no funding for pay increases for the rest of the non-administrative instructional support staff whose work is so crucial to student success," Exter said. "Educators are hoping that as the bill heads back to the House in the waning weeks of session, the House members and senators can find a balance that both acknowledges the importance of teachers and supports the other staff members and resources needed to do the job of educating Texas students.”
As HB 2 heads to the Senate floor later this week, negotiations with the House will be key to reconciling the two chambers’ differing visions for school finance.
ATPE will keep you updated as the bill continues to move over the remaining days of this session.
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