Education policy is often at center stage in the Texas Legislature. This session, lawmakers are teeing up another slate of bills that could contend with 2019’s sweeping bipartisan effort to reform education finance. A $10 Billion Increase in State Spending This legislative session, lawmakers plan to add $10 billion in new funding for education. If passed, that puts the total amount at more than $100 billion for public education in Texas. House Bill 500 seeks to increase state spending by more than $1 billion to compensate for the federal funding shortfall in education. The supplemental bill is a stepping stone to larger proposals, including House Bill 2 (HB 2). The Texas House is proposing nearly $8 billion in new funding for teacher pay raises, expanded Pre-K and early childhood education programs, and increasing the funding formulas per student. Click here to read more about HB 2 and its proposals. Six-Figure Salaries for Teachers Texas Education Agency Commissioner Mike Morath testified in House Public Education earlier this year that Texas already has teachers in the six-figure salary range. This session, lawmakers are looking to expand the number of teachers who qualify for retention bonuses and merit-based pay increases. HB 2 and Senate Bill 26 take different paths to the same solution. Lawmakers are intent on keeping quality teachers in the classroom rather than promoting them to administrative positions. Both bills offer significant increases in the Teacher Incentive Allotment. The bills specifically add funding to help more school districts participate in the merit-based incentive program for high-performing teachers. Read more about teacher pay increases here. The ABCs of HB 123 The Partnership supports House Bill 123 by Houston-area Representative Harold V. Dutton. The longtime lawmaker is introducing this proposal to target kindergarten readiness, early childhood literacy, and math skills across the state. Early estimates put funding for the proposal between $260 million and $392 million by 2030. The proposal includes a new program that would provide funding to parents of students who do not meet target goals for reading and math. The program would also offer grants for tutors and other study aides to help young students get back on track if they fail to hit those targets by the third grade. These are just a handful of the policy proposals related to public education. The Partnership is focused on increasing school funding and strengthening accountability standards. Click here to learn more about the Executive Priorities for the 89th Texas Legislature. For more updates and alerts on the Texas Legislature, click here to sign up for our weekly newsletter. 

While the House Public Education Committee discusses its comprehensive school finance reform, the Senate addresses teacher pay incentives as a stand-alone measure. Senate Bill 26 (SB 26) was swiftly voted out of the Senate on February 26 and now awaits consideration by the House. The upper chamber's decision to separate its education funding priorities follows a similar approach from the 2023 legislative session. As the House and Senate exchanged proposals, teacher incentives and school finance measures were frequently adjusted during negotiations. Ultimately, no proposals were passed, leaving about $5 billion in school funding unallocated in state coffers for two years. Despite the different legislative approaches, SB 26's provisions are similar to the teacher incentive proposals in House Bill 2. Below is a topline analysis of the proposed changes in SB 26. Teacher Designation System Changes Expands teacher designations to include a new category: "acknowledged teacher." Allows National Board Certified teachers to be designated as "nationally board certified" instead of "recognized." Sets an expiration date of September 1, 2028, for the designation of National Board Certified teachers. Introduces new criteria for school districts and charter schools to be designated as "Enhanced Teacher Incentive Allotment Schools," requiring: A strategic evaluation system for principals and assistant principals. A performance-based compensation system for teachers and administrators. Promotes the inclusion of all teachers in the teacher designation system, though not all teachers will receive enhanced designations. A locally designed plan to place highly effective teachers in high-needs schools. Changes to Teacher Incentive Allotments Increases funding for teacher designation levels under the incentive program: Master Teacher: Base amount increases to $12,000-$36,000 (previously $12,000-$32,000). Exemplary Teacher: Base amount increases to $9,000-$25,000 (previously $6,000-$18,000). Recognized Teacher: Base amount increases to $5,000-$15,000 (previously $3,000-$9,000). Acknowledged Teacher: New category with allotments ranging from $3,000-$9,000. Adds a 10% funding boost for schools designated as Enhanced Teacher Incentive Allotment Schools. New Teacher Retention Allotment Provides additional salary incentives for teachers based on years of experience. Small districts (≤5,000 students) $5,000/year for teachers with 3-5 years of experience. $10,000/year for teachers with 5+ years of experience. Larger districts (>5,000 students): $2,500/year for teachers with 3-5 years of experience. $5,500/year for teachers with 5+ years of experience. Ensures districts use the funding for salary increases in the 2025-26 school year and maintain them in subsequent years. Grant Program for Local Teacher Designation Systems Establishes a grant program to help districts expand local teacher designation systems. Aims to increase the number of teachers eligible for designations. Grants will be tailored to meet district-specific needs and support regional leadership capacity. Teacher Liability Insurance & Rights Protection Requires the state education agency to contract with a third party to provide: Assistance in understanding teacher rights, duties, and benefits. Liability insurance coverage for teachers against third-party claims related to their teaching duties. Prohibits districts from interfering with teachers’ access to these services. Changes to Salary Deductions for Teacher Organizations Modifies rules for payroll deductions for professional organization dues: Allows deductions for entities providing liability insurance services. Simplifies payroll deduction procedures by removing the need for employees to specify the number of pay periods for deductions. Pre-Kindergarten Eligibility Expansion Expands pre-K eligibility to children of public school classroom teachers employed within the same school district offering pre-K programs. Adjustments to State Funding for School Districts Provides additional state aid adjustments to help districts maintain financial stability when transitioning under new funding rules. The House could adopt additional reforms from SB 26 under its House Bill 2, the omnibus school finance reform measure. Click here to review the analysis of HB 2.  For now, SB 26 remains eligible for referral to the House Public Education Committee. These differences in policy approach are an early signal that there will be efforts in each chamber to promote the preferred bill on any given issue. Those negotiations may be elevated to the Big 3 (House Speaker Dustin Burrows, Lt. Gov. Dan Patrick, and Governor Greg Abbott) for a final compromise.   For more updates and alerts on the Texas Legislature, click here to sign up for our weekly newsletter.