WEEK IN REVIEW

SENATE COMMITTEE ADVANCES SCHOOL CHOICE

(AUSTIN) — The Senate Committee on Education K-16 approved a plan to create education savings accounts to pay for non-public education services with state revenue, moving forward on Lt. Governor Dan Patrick’s top priority for the 89th session. Money from these accounts could be used for a variety of education services, from private school tuition, books and other instructional materials, tutoring, and educational therapies. “We know that a one-size-fits-all education does not work for many of our students in Texas,” said committee Chair and bill author Senator Brandon Creighton of Conroe. This session’s bill, SB 2, is similar to legislation passed multiple times last session by the Senate though now it’s twice as big.

SB 2 would allocate $1 billion - up from $500 million in last session’s proposal - in state general revenue to create 100,000 education savings accounts, administered by the Office of the Comptroller. Accounts would start at $2,000 per year, going up to $10,000 per year if the student served is attending an accredited private school. Private school students with disabilities would get $11,500 in their accounts.

Applications would be open to all parents with school-aged children in the state, but should demand exceed availability, families with financial or accessibility needs would be prioritized. Eighty percent of funds would be set aside for these families, with the remaining 20 percent open to all applicants. “The most vulnerable Texans will have these opportunities way before anyone else,” said Creighton. “It will be very clear where the Texas Legislature stands on who we’re really working the hardest to help here.”

This bill is on a rapid pace to clear the Senate, and could be debated on the floor next week. Such legislation passed the Senate five times last session, but could not muster the needed support in the House across the regular session and four called special sessions.

Also this week, the Senate Finance Committee held the first of what will be weeks’ worth of public hearings on the state budget. Filed last week by committee Chair and Houston Senator Joan Huffman, it would allocate $332.9 billion in state and federal funds, virtually identical to the amount allocated for state services by the previous legislature. Though the state is entering the year with another excellent revenue projection from the Office of the Comptroller, Huffman told colleagues that continued moderation forecast for the state economy in 2026 and 2027 means lawmakers must stick to conservative spending principles. “Revenue collections are set to return to more normal levels of growth,” Huffman told members. “I ask you to keep this in mind as we craft the next budget, being cautious not to commit short-term spikes in revenue to new, on-going state expenses.”

Highlights in this year’s budget include further property tax reduction, with money to pay for another increase in the homestead exemption, up to $140,000 for most Texas homeowners. Last session’s increase from $40,000 to $100,000 was estimated to save the average household almost $700 in annual school property taxes. The bill also includes the $1 billion necessary to pay for the proposed school choice program, and $4.85 billion for an across-the-board teacher pay raise of $4,000, with more going to rural teachers and the state’s teacher merit pay program.

###