On Tuesday, the Texas Senate unanimously passed Senate Bill 1 (SB 1), its version of the state budget proposal for the next two years. Senator Joan Huffman outlined the priority funding and key projects, including the Texas Water Funding, Dementia Prevention and Research Institute of Texas, public education, workforce development and more.  The Senate spent roughly three hours discussing SB 1, which increases appropriations by more than $15 billion from the current budget. The Partnership’s Budget Explorer Tool is updated with the latest version of the Senate Base Budget. Use the tool to explore the following: Topline funding totals for state agencies Public education funding and targeted programs under the Texas Education Agency Funding for water and flood projects across various state agencies Increased Education Spending The committee substitute to SB 1 increased the base budget by about $4 billion, bringing the total spending proposal to $336 billion.  The Texas Education Agency saw the addition of nine programs to the bill. Those include: $11 million for the Teach for America Program $10 million to boost school bus safety $7.5 million in start-up grants for Adult Education Programs in Texas schools $5 million for grants to support low-performing elementary schools $2 million to increase enrollment for College, Career, and Military Readiness programs $800,000 for five new employees at the State Board of Education Senator Brandon Creighton noted in the SB 1 debate that the finance committee chose to maintain the Basic Allotment at $6,100 per student to increase funding for targeted programs instead. Sen. Creighton said the decision was influenced by testimony from supporters of funding specific programs instead of raising the basic allotment. Water Funding Rising Higher The proposed funding for Article VI, which covers agencies under the Natural Resources title, significantly decreased from the current budget. Senators proposed cutting Article VI funding by over $826 million, a 9.41% cut in spending. However, the funding decrease is misleading, as lawmakers have proposed adding $2.5 billion to the supplemental budget for the Texas Water Development Board, contingent on passing a related bill. This allocation is currently noted as a footnote in Article IX of the supplemental budget. Regardless, funding for water projects was increased generally across the board in the committee substitute to SB 1. The Texas Commission on Environmental Quality received increased appropriations for key water resource funds, including a $12 million increase for safe drinking water programs and a $5 million-plus increase in funding for water resource permitting. Still on Tap Lawmakers are still working to deliver a constitutional proposition to dedicate $1 billion annually to the Texas Water Fund for the next 10 years. House Joint Resolution 7 was unanimously voted out of the House Natural Resources Committee on March 19. On Monday, the Senate Committee on Water, Agriculture, and Rural Affairs unanimously passed Senate Bill 7. This enabling legislation outlines the framework for spending the $1 billion in dedicated funding. The Senate wants 80% of the funding to go to new water supply sources, while the House wants more flexibility to use funding for infrastructure repair and maintenance. Building Resilience In addition to water supply funding, lawmakers are looking to increase funding for flood projects around the state. The Soil and Water Conservation Board is investing additional dollars in flood control dams—new construction and ongoing maintenance. If passed, total flood funding will reach over $254 million for the next two years.

Texas is a global powerhouse, and Houston is the welcoming committee for many companies looking to settle in the Lone Star State. The strength of our workforce is one key issue that continues to drive economic growth. Lawmakers are looking to increase the pool of homegrown talent through House Bill 120 (HB 120). This comprehensive reform bill will increase funding for career advising, strengthen programs that prepare graduating seniors for careers, and boost funding for facilities that expand career educational programs in public schools. The Partnership is supporting HB 120 this session. Here’s a look at the bill and key areas of interest in workforce development: High School Advising Program Establishes a program for districts and charter schools to provide college and career advising. Requires partnerships with institutions of higher education or workforce organizations. Limits advisors to a caseload of 200 students, prioritizing grades 11 and 12. Introduces a funding allotment of $50,000 per full-time equivalent advisor. Gradually reduces funding after five years unless districts meet performance benchmarks. Funding Changes for Career Programs Allows funding to support high school graduates for up to two years in postsecondary education or vocational training. Increases funding for students in P-TECH and New Tech Network schools from $50 to $150 per student. Provides additional funding for students enrolled in dual credit programs post-graduation. New Facilities Funding Expands definition to include facilities renovated for high-cost, undersubscribed career and technical education programs. Increases funding cap from $100 million to $150 million. Expands Eligibility for Rural Programs Allows districts to continue participation regardless of enrollment size. Expands retirement system eligibility for employees of coordinating entities. Modifies grant funding allocation and eligibility for performance agreements. Requires R-PEP partnerships to offer specific career pathways, including computer programming and skilled trades. Military Pathway Grant Program Establishes a grant program for school districts to implement JROTC programs. Requires districts to administer the Armed Services Vocational Aptitude Battery (ASVAB) test annually. Provides career counseling based on ASVAB results. Grants are set at $50,000 per district, with a total funding cap of $2 million annually. Because of the variety of programs and funding changes, lawmakers are proposing a phased-in approach to gradually implement these programs through 2027. Contingency funding will be included in the budget proposals that have yet to receive a floor vote in either chamber. Both HB 120 and the General Appropriations Act (Senate Bill 1) must pass for these reforms to be fully implemented. The Partnership is also supporting Senate Bill 1826 by Sen. Charles Schwertner, which is also designed to strengthen Career and Technical Education programs in Texas. For more updates and alerts on the Texas Legislature, click here to sign up for our weekly newsletter.