LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 4, 2025 TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2 by Buckley (Relating to public education and public school finance.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Introduced: a negative impact of ($7,568,572,060) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($3,626,701,227)2027($3,941,870,833)2028($4,173,361,508)2029($4,010,114,232)2030($4,758,217,853)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFoundation School Fund193 Probable Revenue Gain/(Loss) fromRecapture Payments Atten Crdts8905 Change in Number of State Employees from FY 20252026($97,922,301)($3,528,778,926)($382,079,259)66.02027($134,249,940)($3,807,620,893)($490,740,912)67.02028($117,595,400)($4,055,766,108)($502,472,197)67.02029($126,294,402)($3,883,819,830)($579,327,594)67.02030($128,534,069)($4,629,683,784)($479,361,823)67.0 Fiscal AnalysisArticle 1The bill would amend operational funding received by charters and would amend charter facilities funding to provide charter schools with an annual per ADA allotment equal to the basic allotment multiplied by 0.07 and would remove the annual $60 million cap.The bill would add an additional designation level to the teacher incentive allotment (TIA) and would change the designation of nationally board-certified teachers. The bill would also direct the Commissioner to designate schools as enhanced teacher incentive allotment schools and expand the technical assistance duties of the Texas Education Agency (TEA) related to implementation of local optional teacher designation systems.The bill would establish the local optional teacher designation system grant program. From funds appropriated or available, TEA would develop and administer a grant program with money and technical assistance for districts and open-enrollment charter schools to expand implementation of local optional teacher designations system and increase the number of teachers eligible for a designation. Grants that would be awarded under this section would be required to meet the needs of individual school districts and enable regional leadership capacity.The bill would establish the Additional Days School Year Planning Grant Program. From funds appropriated or available, TEA would be required to develop and administer a grant program to provide money and technical assistance for districts and open-enrollment charter schools to qualify for the Incentive for Additional Instructional Days under Education Code, Section 48.0051. School districts and open-enrollment charter schools that seek to maximize the additional instructional days incentive would be prioritized for grant awards under this program.The bill would allow a child who is at least three years of age to enroll in a prekindergarten class if the class is provided through a partnership between a district or open enrollment charter school and certain community based childcare providers and if the child receives subsidized childcare services provided through the Texas Workforce Commission (TWC).The bill would create a high school advising program, administered by TEA, which would support participating districts and open-enrollment charter schools in providing college or career advising support to students. Participating districts and open-enrollment charter schools would be required to have a partnership agreement with a public institution of higher learning, or a vocational program at a public institution of higher education, to provide college or career advisors. Advisors would be required to be trained in practices relating to college or career advising, and would be prohibited from having caseloads of more than 200 students. Students in grade levels 11 and 12 would be prioritized. The bill would grant rulemaking authority to the commissioner to implement the high school advising program, and would require the commissioner to consult with TWC and the Texas Higher Education Coordinating Board.The bill would require that a school district experiencing a decline in average daily attendance (ADA) of more than 5.0 percent be funded based on an ADA of 95.0 percent of the actual ADA of the preceding school year. Open-enrollment charter schools would not be eligible for this funding.The bill would provide that ADA for students enrolled in a half-day or full-day prekindergarten program provided by an eligible provider and at a campus operated under a contract entered into by a district or open-enrollment charter school be calculated.The bill would expand the Incentive for Additional Instructional Days to include districts offering 30 days of half-day instruction for students in prekindergarten through eighth grade and would reduce the required minimum number of minutes of operational and instruction time from 180 to 175 instructional days. The bill would also provide a 50 percent increase to the incentive amount for districts offering at least 200 full days of instruction to students in prekindergarten through eighth grade.The bill would increase the Basic Allotment under the FSP to $6,380 for each student in average daily attendance, not including time spent in career and technology education programs or in special education programs in a setting other than a general education setting. The bill would increase the requirement that a district use a portion of new funding to provide compensation increases in a year for which the basic allotment is increased from 30 percent to 40 percent.The bill would require that a school district employee who receives a salary increase due to a Basic Allotment increase continue to be paid a salary at least equal to the employee's salary from the preceding school year if the employee remains employed by the same district and if the district receives the same level of funding as the preceding school year. The requirement would not apply if certain criteria are met.The bill would increase the weights for the Small and Midsized Allotment under the FSP and would exclude students enrolled in a full-time virtual program that do not reside in the district from the district's ADA under this section.The bill would increase the weights for the Compensatory Education Allotment under the FSP.The bill would add an additional designation level to the Teacher Incentive Allotment (TIA) and would change the designation of nationally board-certified teachers. The bill would increase the allotments and rural and high needs factors for TIA. A district designated as an enhanced teacher incentive allotment school would receive an increased allotment by multiplying their allotment under TIA by 1.1. For districts receiving the enhanced teacher incentive allotment, the bill would require the district to certify that the additional funds were used for an allowable purpose.The bill would establish the Fine Arts Allotment that would provide an allotment for each student in ADA in grade levels 6 through 12 enrolled in an approved fine arts education course. For students who are not educationally disadvantaged, the allotment would equal the Basic Allotment, or, if applicable, the sum of the Basic Allotment and the allotment under Education Code, Section 48.101, to which the district is entitled, multiplied by 0.008. The allotment for educationally disadvantaged students would be twice this amount. The bill would cap the total cost of the allotment at $15.0 million per school year.TEA would be required to publish annually a list of approved fine arts education courses that qualify for the Fine Arts Allotment.The bill would establish the High School Advising Allotment under the FSP. The allotment would provide $50,000 for each full-time equivalent advisor or contracted service provider under the high school advising program and would limit the number of advisors for whom a district may receive the allotment to one advisor per 200 students enrolled in the district in grade levels 11 and 12. The allotment would be reduced by 20 percent for each school year, beginning in the fifth school year, unless the district's performance for the school year met certain criteria.As a result of the basic allotment increase included in the bill, the copper penny yield would increase from $49.28 per penny per WADA to $51.04 per penny per WADA in fiscal year 2026. This analysis assumes the golden penny yield would still be tied to the 96th percentile district.The bill would amend and repeal certain hold harmless provisions to entitle districts to additional state aid to the extent that a district's state and local revenue used for maintenance and operations would be less than the state and local revenue that would have been available to the district absent certain property tax relief provisions provided by the Eighty-eighth Legislature.The bill would provide additional state aid to certain districts receiving an adjustment under Education Code, Section 48.257.The bill would provide for an adjustment for revenue losses to school districts if the state assigned value from the Comptroller's Property Value Study is used to determine the Local Fund Assignment instead of locally assigned property value. The total amount a district would receive from an adjustment would be reduced for every consecutive year in which the district receives an adjustment. The total amount provided under this section would be capped at $60 million each year.The bill would provide additional state aid for regional insurance cost differentials for school districts and open-enrollment charter schools that own or lease property in areas served by certain regional education service centers. The additional state aid would be equal to $55, or a greater amount by appropriation, per student in average daily attendance.Article 2The bill would provide one-time payments for certain uncertified teachers who earn a standard certificate.The bill would require TEA to collect data from districts on teacher recruitment, retention, and positions.The bill would require the State Board for Educator Certification (SBEC) to waive bilingual and special education certification application fees and exam fees for a candidate's first test attempt, and would require SBEC to pay the vendor who administers the certification exams the fee associated with the exam for which the fee was waived.The bill would require SBEC to develop rules and procedures relating to evaluating educator preparation programs (EPP) for approval and the renewal of approval, including educator literacy and mathematics achievement academies.The bill would require the commissioner to develop and make available instructional materials for educator preparation programs and training for faculty responsible for preparing educator candidates.The bill would require school districts to pay a teacher with zero years of experience who holds a certification under Education Code, Section 21.0412(a), a minimum salary that is greater than a teacher with equivalent experience who does not hold a certification under that section. The bill would prohibit school districts from adopting a salary schedule for teachers with five or more years of experience that differentiates minimum salaries based solely on certification.The bill would create the Employed Retiree Teacher Reimbursement Grant Program to reimburse school districts that employ TRS retirees for the contribution amount that the district would be responsible for paying when employing a TRS retiree. The grants provided under this section may be modified by appropriation and the grant program would be established and administered by the commissioner.The bill would direct school districts to provide onetime payments to certain teacher candidates for completing literacy or math academies.From funds appropriated, TEA would be required to provide school districts with information and technical assistance regarding staffing models, scheduling, and teacher compensation models; programs that would encourage high school students to become teachers, including apprenticeships; programs that school leaders may use to establish behavior expectations while positively supporting students; and studies related to non-instructional duties for teachers and best practices for refining schedules for students and teachers.The bill would establish the Preparing and Retaining Educators through Preservice Partnership (PREPP) Program to provide preservice practice opportunities for teacher candidates in a prekindergarten through grade 12 classroom through partnerships between school districts or open-enrollment charter schools and EPPs. TEA would be required to provide technical assistance and support to participating schools and EPPs.The bill would establish the Preparing and Retaining Educators through Preservice Partnership Program Allotment for the PREPP Program. For each teacher candidate completing preservice practice hours at the district under Subchapter Q, Chapter 21, the district would be entitled to an allotment equal to sum of a base amount ranging from $8,000 to $24,000, and an amount ranging from $1,000 to $3,000 multiplied by the high needs and rural factor, which would have a maximum value of 4.0, as determined under Subsection (c). The Texas School for the Deaf (TSD), the Texas School for the Blind and Visually Impaired (TSBVI), and schools in the Texas Department of Criminal Justice would be entitled to the allotment under this section. Eligible districts with candidates for special or bilingual education certification employed in a residency position would be entitled to an additional $2,000 allotment.The bill would repeal the Mentor Program Allotment under the FSP.The bill would repeal Government Code, Section 825.4092(f), to allow employers to pass on surcharges to employed retirees.Article 3The bill would require TEA to provide certain technical assistance, and oversight, and support for the education of students with disabilities.The bill would require the Health and Human Services Commission (HHSC), in collaboration with TEA and stakeholders, to develop and provide materials to certain students regarding educational residential placements.The bill would require the commissioner to develop a list of approved public or private facilities, institutions, agencies, or businesses inside or outside that state that provide services to students with disabilities in residential or day placement program.The bill would provide eligibility for a district to apply for a grant under existing Section 29.018 if the district does not receive sufficient state funds under 48.102 and 48.1021 and federal funds to pay for special education services provided to the district's special education students. The grant program under Section 29.018 is subject to appropriation.The bill would establish the Grant Program Providing Training in Dyslexia for Teachers and Staff.The bill would provide a grant program, administered by TEA, to LEAs to increase the number of qualified and appropriately credentialed special education staff, to include special education teachers, paraprofessionals, evaluation personnel, ancillary instructional personnel, and related service personnel.The bill would expand free prekindergarten eligibility to students receiving special education services.The bill would require that each school district, instead of the commissioner and the executive commissioner of HHSC, ensure the language acquisition of deaf or hard of hearing students under the age of eight is regularly assessed. School districts would be required to report assessment data set by commissioner rule to the agency through PEIMS.The bill would expand the Comprehensive Statewide Plan under Education Code, Section 31.002, to include students that are deaf or hard of hearing, as well as increase the maximum age of eligible students from 21 to 22.The bill would reduce the amount for which a district is required to contribute for a student admitted to TSD or TSBVI if the district is required to reduce local revenue under Education Code, Section 48.257.The bill would require TEA by rule to develop procedures to allow TEA to ensure school district compliance with the program for screening and treatment of dyslexia and related disorders as approved by the SBOE. Strategies to address noncompliance could include publication of recommended evidence-based dyslexia program list.The bill would amend the special education allotment under the FSP to provide for weighted funding based on tiers of intensity of service to be defined by the commissioner. The commissioner would be required to submit proposed weights for each tier to the LBB for the upcoming biennium.The bill would create the Special Education Service Group Allotment under the FSP and would require the Commissioner to establish four service groups to determine funding for special education students under this section. The commissioner would be required to submit proposed amounts of funding for the special education service groups to the LBB not later than December 1 of each even-numbered year.The bill would establish the Special Education Transition Funding Allotment for fiscal years 2026 and 2027. For the 2025-26 and 2026-27 school years, the bill would require the commissioner to ensure that the proposed weights for the amended special education allotment under Education Code, Section 48.102, and the new service group allotment under Education Code, Section 48.1021, would result in a statewide increase of approximately $615.0 million from the special education allotment funding provided during the 2024-25 school year.The bill would increase the College, Career and Military Readiness Outcomes Bonus for special education students from $2,000 to $4,000.The bill would increase the transportation allotment for special education students to from $1.08 to $1.13 per mile or a greater amount by appropriation.The bill would establish the Special Education Full Individual and Initial Evaluation allotment which would provide districts with $1,000, or a greater amount by appropriation, for each student for whom the district conducts a full individual and initial evaluation.The bill would establish day placement program funding under the FSP for which ESCs and LEAs could receive an annual allotment for each qualifying program or cooperative for $250,000 for the first year and for subsequent years $50,000 each year for each student enrolled in the program, up to a maximum annual allotment of $250,000.The bill would create the Parent Directed Services for Students Receiving Special Education Services Grant. Eligible students would be entitled one award of $1,500. Award amounts and number of awards may be increased by appropriation. An ESC designated to administer the program would be entitled to four percent of each grant awarded.The bill would shift existing funding for regional day school programs for the deaf to the FSP.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 4, 2025
TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2 by Buckley (Relating to public education and public school finance.), As Introduced
TO: Honorable Brad Buckley, Chair, House Committee on Public Education
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2 by Buckley (Relating to public education and public school finance.), As Introduced
Honorable Brad Buckley, Chair, House Committee on Public Education
Honorable Brad Buckley, Chair, House Committee on Public Education
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2 by Buckley (Relating to public education and public school finance.), As Introduced
HB2 by Buckley (Relating to public education and public school finance.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Introduced: a negative impact of ($7,568,572,060) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Introduced: a negative impact of ($7,568,572,060) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($3,626,701,227)
2027 ($3,941,870,833)
2028 ($4,173,361,508)
2029 ($4,010,114,232)
2030 ($4,758,217,853)
All Funds, Five-Year Impact:
2026 ($97,922,301) ($3,528,778,926) ($382,079,259) 66.0
2027 ($134,249,940) ($3,807,620,893) ($490,740,912) 67.0
2028 ($117,595,400) ($4,055,766,108) ($502,472,197) 67.0
2029 ($126,294,402) ($3,883,819,830) ($579,327,594) 67.0
2030 ($128,534,069) ($4,629,683,784) ($479,361,823) 67.0
Fiscal Analysis
Article 1The bill would amend operational funding received by charters and would amend charter facilities funding to provide charter schools with an annual per ADA allotment equal to the basic allotment multiplied by 0.07 and would remove the annual $60 million cap.The bill would add an additional designation level to the teacher incentive allotment (TIA) and would change the designation of nationally board-certified teachers. The bill would also direct the Commissioner to designate schools as enhanced teacher incentive allotment schools and expand the technical assistance duties of the Texas Education Agency (TEA) related to implementation of local optional teacher designation systems.The bill would establish the local optional teacher designation system grant program. From funds appropriated or available, TEA would develop and administer a grant program with money and technical assistance for districts and open-enrollment charter schools to expand implementation of local optional teacher designations system and increase the number of teachers eligible for a designation. Grants that would be awarded under this section would be required to meet the needs of individual school districts and enable regional leadership capacity.The bill would establish the Additional Days School Year Planning Grant Program. From funds appropriated or available, TEA would be required to develop and administer a grant program to provide money and technical assistance for districts and open-enrollment charter schools to qualify for the Incentive for Additional Instructional Days under Education Code, Section 48.0051. School districts and open-enrollment charter schools that seek to maximize the additional instructional days incentive would be prioritized for grant awards under this program.The bill would allow a child who is at least three years of age to enroll in a prekindergarten class if the class is provided through a partnership between a district or open enrollment charter school and certain community based childcare providers and if the child receives subsidized childcare services provided through the Texas Workforce Commission (TWC).The bill would create a high school advising program, administered by TEA, which would support participating districts and open-enrollment charter schools in providing college or career advising support to students. Participating districts and open-enrollment charter schools would be required to have a partnership agreement with a public institution of higher learning, or a vocational program at a public institution of higher education, to provide college or career advisors. Advisors would be required to be trained in practices relating to college or career advising, and would be prohibited from having caseloads of more than 200 students. Students in grade levels 11 and 12 would be prioritized. The bill would grant rulemaking authority to the commissioner to implement the high school advising program, and would require the commissioner to consult with TWC and the Texas Higher Education Coordinating Board.The bill would require that a school district experiencing a decline in average daily attendance (ADA) of more than 5.0 percent be funded based on an ADA of 95.0 percent of the actual ADA of the preceding school year. Open-enrollment charter schools would not be eligible for this funding.The bill would provide that ADA for students enrolled in a half-day or full-day prekindergarten program provided by an eligible provider and at a campus operated under a contract entered into by a district or open-enrollment charter school be calculated.The bill would expand the Incentive for Additional Instructional Days to include districts offering 30 days of half-day instruction for students in prekindergarten through eighth grade and would reduce the required minimum number of minutes of operational and instruction time from 180 to 175 instructional days. The bill would also provide a 50 percent increase to the incentive amount for districts offering at least 200 full days of instruction to students in prekindergarten through eighth grade.The bill would increase the Basic Allotment under the FSP to $6,380 for each student in average daily attendance, not including time spent in career and technology education programs or in special education programs in a setting other than a general education setting. The bill would increase the requirement that a district use a portion of new funding to provide compensation increases in a year for which the basic allotment is increased from 30 percent to 40 percent.The bill would require that a school district employee who receives a salary increase due to a Basic Allotment increase continue to be paid a salary at least equal to the employee's salary from the preceding school year if the employee remains employed by the same district and if the district receives the same level of funding as the preceding school year. The requirement would not apply if certain criteria are met.The bill would increase the weights for the Small and Midsized Allotment under the FSP and would exclude students enrolled in a full-time virtual program that do not reside in the district from the district's ADA under this section.The bill would increase the weights for the Compensatory Education Allotment under the FSP.The bill would add an additional designation level to the Teacher Incentive Allotment (TIA) and would change the designation of nationally board-certified teachers. The bill would increase the allotments and rural and high needs factors for TIA. A district designated as an enhanced teacher incentive allotment school would receive an increased allotment by multiplying their allotment under TIA by 1.1. For districts receiving the enhanced teacher incentive allotment, the bill would require the district to certify that the additional funds were used for an allowable purpose.The bill would establish the Fine Arts Allotment that would provide an allotment for each student in ADA in grade levels 6 through 12 enrolled in an approved fine arts education course. For students who are not educationally disadvantaged, the allotment would equal the Basic Allotment, or, if applicable, the sum of the Basic Allotment and the allotment under Education Code, Section 48.101, to which the district is entitled, multiplied by 0.008. The allotment for educationally disadvantaged students would be twice this amount. The bill would cap the total cost of the allotment at $15.0 million per school year.TEA would be required to publish annually a list of approved fine arts education courses that qualify for the Fine Arts Allotment.The bill would establish the High School Advising Allotment under the FSP. The allotment would provide $50,000 for each full-time equivalent advisor or contracted service provider under the high school advising program and would limit the number of advisors for whom a district may receive the allotment to one advisor per 200 students enrolled in the district in grade levels 11 and 12. The allotment would be reduced by 20 percent for each school year, beginning in the fifth school year, unless the district's performance for the school year met certain criteria.As a result of the basic allotment increase included in the bill, the copper penny yield would increase from $49.28 per penny per WADA to $51.04 per penny per WADA in fiscal year 2026. This analysis assumes the golden penny yield would still be tied to the 96th percentile district.The bill would amend and repeal certain hold harmless provisions to entitle districts to additional state aid to the extent that a district's state and local revenue used for maintenance and operations would be less than the state and local revenue that would have been available to the district absent certain property tax relief provisions provided by the Eighty-eighth Legislature.The bill would provide additional state aid to certain districts receiving an adjustment under Education Code, Section 48.257.The bill would provide for an adjustment for revenue losses to school districts if the state assigned value from the Comptroller's Property Value Study is used to determine the Local Fund Assignment instead of locally assigned property value. The total amount a district would receive from an adjustment would be reduced for every consecutive year in which the district receives an adjustment. The total amount provided under this section would be capped at $60 million each year.The bill would provide additional state aid for regional insurance cost differentials for school districts and open-enrollment charter schools that own or lease property in areas served by certain regional education service centers. The additional state aid would be equal to $55, or a greater amount by appropriation, per student in average daily attendance.Article 2The bill would provide one-time payments for certain uncertified teachers who earn a standard certificate.The bill would require TEA to collect data from districts on teacher recruitment, retention, and positions.The bill would require the State Board for Educator Certification (SBEC) to waive bilingual and special education certification application fees and exam fees for a candidate's first test attempt, and would require SBEC to pay the vendor who administers the certification exams the fee associated with the exam for which the fee was waived.The bill would require SBEC to develop rules and procedures relating to evaluating educator preparation programs (EPP) for approval and the renewal of approval, including educator literacy and mathematics achievement academies.The bill would require the commissioner to develop and make available instructional materials for educator preparation programs and training for faculty responsible for preparing educator candidates.The bill would require school districts to pay a teacher with zero years of experience who holds a certification under Education Code, Section 21.0412(a), a minimum salary that is greater than a teacher with equivalent experience who does not hold a certification under that section. The bill would prohibit school districts from adopting a salary schedule for teachers with five or more years of experience that differentiates minimum salaries based solely on certification.The bill would create the Employed Retiree Teacher Reimbursement Grant Program to reimburse school districts that employ TRS retirees for the contribution amount that the district would be responsible for paying when employing a TRS retiree. The grants provided under this section may be modified by appropriation and the grant program would be established and administered by the commissioner.The bill would direct school districts to provide onetime payments to certain teacher candidates for completing literacy or math academies.From funds appropriated, TEA would be required to provide school districts with information and technical assistance regarding staffing models, scheduling, and teacher compensation models; programs that would encourage high school students to become teachers, including apprenticeships; programs that school leaders may use to establish behavior expectations while positively supporting students; and studies related to non-instructional duties for teachers and best practices for refining schedules for students and teachers.The bill would establish the Preparing and Retaining Educators through Preservice Partnership (PREPP) Program to provide preservice practice opportunities for teacher candidates in a prekindergarten through grade 12 classroom through partnerships between school districts or open-enrollment charter schools and EPPs. TEA would be required to provide technical assistance and support to participating schools and EPPs.The bill would establish the Preparing and Retaining Educators through Preservice Partnership Program Allotment for the PREPP Program. For each teacher candidate completing preservice practice hours at the district under Subchapter Q, Chapter 21, the district would be entitled to an allotment equal to sum of a base amount ranging from $8,000 to $24,000, and an amount ranging from $1,000 to $3,000 multiplied by the high needs and rural factor, which would have a maximum value of 4.0, as determined under Subsection (c). The Texas School for the Deaf (TSD), the Texas School for the Blind and Visually Impaired (TSBVI), and schools in the Texas Department of Criminal Justice would be entitled to the allotment under this section. Eligible districts with candidates for special or bilingual education certification employed in a residency position would be entitled to an additional $2,000 allotment.The bill would repeal the Mentor Program Allotment under the FSP.The bill would repeal Government Code, Section 825.4092(f), to allow employers to pass on surcharges to employed retirees.Article 3The bill would require TEA to provide certain technical assistance, and oversight, and support for the education of students with disabilities.The bill would require the Health and Human Services Commission (HHSC), in collaboration with TEA and stakeholders, to develop and provide materials to certain students regarding educational residential placements.The bill would require the commissioner to develop a list of approved public or private facilities, institutions, agencies, or businesses inside or outside that state that provide services to students with disabilities in residential or day placement program.The bill would provide eligibility for a district to apply for a grant under existing Section 29.018 if the district does not receive sufficient state funds under 48.102 and 48.1021 and federal funds to pay for special education services provided to the district's special education students. The grant program under Section 29.018 is subject to appropriation.The bill would establish the Grant Program Providing Training in Dyslexia for Teachers and Staff.The bill would provide a grant program, administered by TEA, to LEAs to increase the number of qualified and appropriately credentialed special education staff, to include special education teachers, paraprofessionals, evaluation personnel, ancillary instructional personnel, and related service personnel.The bill would expand free prekindergarten eligibility to students receiving special education services.The bill would require that each school district, instead of the commissioner and the executive commissioner of HHSC, ensure the language acquisition of deaf or hard of hearing students under the age of eight is regularly assessed. School districts would be required to report assessment data set by commissioner rule to the agency through PEIMS.The bill would expand the Comprehensive Statewide Plan under Education Code, Section 31.002, to include students that are deaf or hard of hearing, as well as increase the maximum age of eligible students from 21 to 22.The bill would reduce the amount for which a district is required to contribute for a student admitted to TSD or TSBVI if the district is required to reduce local revenue under Education Code, Section 48.257.The bill would require TEA by rule to develop procedures to allow TEA to ensure school district compliance with the program for screening and treatment of dyslexia and related disorders as approved by the SBOE. Strategies to address noncompliance could include publication of recommended evidence-based dyslexia program list.The bill would amend the special education allotment under the FSP to provide for weighted funding based on tiers of intensity of service to be defined by the commissioner. The commissioner would be required to submit proposed weights for each tier to the LBB for the upcoming biennium.The bill would create the Special Education Service Group Allotment under the FSP and would require the Commissioner to establish four service groups to determine funding for special education students under this section. The commissioner would be required to submit proposed amounts of funding for the special education service groups to the LBB not later than December 1 of each even-numbered year.The bill would establish the Special Education Transition Funding Allotment for fiscal years 2026 and 2027. For the 2025-26 and 2026-27 school years, the bill would require the commissioner to ensure that the proposed weights for the amended special education allotment under Education Code, Section 48.102, and the new service group allotment under Education Code, Section 48.1021, would result in a statewide increase of approximately $615.0 million from the special education allotment funding provided during the 2024-25 school year.The bill would increase the College, Career and Military Readiness Outcomes Bonus for special education students from $2,000 to $4,000.The bill would increase the transportation allotment for special education students to from $1.08 to $1.13 per mile or a greater amount by appropriation.The bill would establish the Special Education Full Individual and Initial Evaluation allotment which would provide districts with $1,000, or a greater amount by appropriation, for each student for whom the district conducts a full individual and initial evaluation.The bill would establish day placement program funding under the FSP for which ESCs and LEAs could receive an annual allotment for each qualifying program or cooperative for $250,000 for the first year and for subsequent years $50,000 each year for each student enrolled in the program, up to a maximum annual allotment of $250,000.The bill would create the Parent Directed Services for Students Receiving Special Education Services Grant. Eligible students would be entitled one award of $1,500. Award amounts and number of awards may be increased by appropriation. An ESC designated to administer the program would be entitled to four percent of each grant awarded.The bill would shift existing funding for regional day school programs for the deaf to the FSP.
Methodology
TEA estimates that there would be an annual cost of $15.0 million for implementation of expanded technical assistance requirements for TIA.TEA estimates the local optional teacher designation system grant program would cost $30.0 million annually to implement.TEA assumes the cost to provide grants under the Additional Days School Year Planning Grant Program would be $7.5 million each year.This analysis assumes that salary increases provided by the bill would require $26.6 million for the Teacher Retirement System in statutorily-required state contributions to TRS-Care in fiscal year 2026, $28.5 million in fiscal year 2027, increasing to $38.3 million in fiscal year 2030. Exact costs associated with providing an adjustment for loss of district revenue due to the use of state values cannot be determined at this time; however, this analysis assumes the total amount of funds that would be available for this purpose would equal the $60 million cap each fiscal year under the bill.This analysis assumes total costs to provide onetime payments of $1,000 to certain previously uncertified teachers would total $15.0 million for fiscal year 2027, based on TEA's assumption that approximately 15,000 uncertified teachers would earn a standard certificate.TEA estimates that provisions of the bill requiring the waiver of certain examination and certification fees, including vendor costs for administration, would cost $3.0 million in fiscal year 2026, $3.2 million in fiscal year 2027, increasing to $3.2 million in fiscal year 2030.TEA assumes the cost to evaluate EPPs for approval and renewal of approval would be $6.5 million in fiscal year 2026, $5.8 million in fiscal year 2027, increasing to $6.2 million in fiscal year 2030.TEA assumes the cost for developing instructional materials and faculty training for educator preparation programs would be $2.3 million in fiscal year 2026, $2.5 million in fiscal year 2027, increasing to $4.8 million in fiscal year 2030.The cost to require different statewide minimum salaries to teachers based on certification types cannot be determined, as the required salary differences between certification categories and which teachers the new certification types would apply to are unknown.The amount appropriated to the Employed Retiree Teacher Reimbursement Grant Program is unspecified, and the legislature may restrict eligibility for the program by appropriation; therefore, costs cannot be determined. As an illustrative example of the potential cost, in fiscal year 2024 TRS received a total of approximately $57.9 million for retirement program surcharges and $16.3 million for TRSCare surcharges, including both employee and employer surcharges for all positions. The bill would not make changes to the amount of the TRS retirement contribution, just the source of the funding; therefore, TRS assumes there would be no significant impact to the agency from this provision.TEA assumes that 35.0 percent of estimated teacher candidates in eligible preparation programs would complete certain program requirements and be eligible to receive onetime stipends for completion of literacy and math academies, with residency program candidates receiving stipends in fiscal year 2026 and candidates in other eligible preparation programs receiving stipends beginning in fiscal year 2027. TEA assumes that given the timeline of implementation, only literacy academies would be operational in fiscal years 2026 and 2027, with both trainings being operational and required beginning in fiscal year 2028. This analysis assumes the cost of these stipends would be $0.5 million in fiscal year 2026, $4.7 million in fiscal year 2027, increasing to $9.1 million in fiscal year 2030.To administer Teacher Quality Assistance, TEA assumes funding would be required for development and implementation of supports, technical assistance to support LEAs in implementing improvements, and grants to LEAs. This analysis assumes development of strategic scheduling, staffing, and compensation modules to support technical assistance would cost $1.5 million in fiscal year 2026. The agency assumes grants for delivery of technical assistance would cost $2.3 million in fiscal year 2026 and $4.5 million annually in fiscal years 2027-30. Grants to LEAs to support implementation of strategic staffing, scheduling, and compensation systems are assumed to cost $4.0 million annually in fiscal years 2027-30. Technical assistance grants to support school leaders develop school culture routines and discipline systems would cost $3.0 million annually beginning in fiscal years 2026. Technical assistance grants to LEAs to establish grow-your-own partnerships are assumed to cost $1.5 million annually. The development of teacher leader and co-teacher training modules would cost $500,000 annually in fiscal years 2026-27 and $100,000 annually in fiscal years 2028-30. Technical assistance grants to LEAs to support the development of teacher leadership roles are assumed to cost $1.3 million annually.To administer the Teacher Time Study, this analysis assumes a cost of $500,000 in fiscal year 2026 and $50,000 annually in fiscal years 2027-30 would be required for the development and implementation of the study. This analysis assumes that $750,000 in fiscal year 2026 and $1.5 million annually in fiscal years 2027-30 would be required for technical assistance to LEAs. This analysis assumes $3.0 million annually in fiscal years 2027-30 would be required to provide grants to LEAs under this section.TEA estimates that provisions of the bill establishing the PREPP program, including programmatic supports and a dedicated application management system, would total $21.4 million in fiscal year 2026, $28.1 million in fiscal year 2027, increasing to $35.0 million in fiscal year 2030.TRS assumes there would be no significant fiscal impact to the state from allowing employers to pass on surcharges to employed retirees.According to HHSC, the agency could develop materials regarding educational residential placements with existing resources.This analysis assumes that the cost related to providing grants to districts that do not receive sufficient state and federal funds to pay for special education services provided to the district's special education students cannot be determined at this time.TEA assumes that the cost of the grant program providing training in dyslexia for teachers and staff would be $10.0 million each fiscal year.The bill would allow TEA to provide grants to LEAs to increase the number of qualified and appropriately credentialed special education staff. TEA assumes that this grant program would cost $10.0 million per fiscal year.This analysis assumes the cost associated with changes to special education FSP funding as proposed by the bill would be limited to approximately $615.0 million in additional funding compared to the special education allotment in fiscal year 2025 for each fiscal year of the 2026-27 biennium, pursuant to the limitation specified in the bill. For subsequent years, this analysis assumes the fiscal impact related to the changes to the special education allotment would be at least maintained at fiscal year 2027 levels, as weights and service groups would be determined by the Commissioner and exact amounts cannot be determined.The agency assumes there would be 200,000 Special Education Full Individual and Initial Evaluations each year that would be eligible for funding of $1,000 per evaluation.The agency assumes the cost associated with the Day Placement Program or Cooperative Funding would be $7.5 million in fiscal year 2027, doubling each year until it reaches $60.0 million in fiscal year 2030.TEA assumes costs of the Parent-Directed Services for Students Receiving Special Education Services Grant program would be partially offset by a reduction of $30.0 million each year as a result of the program moving to the FSP.The total TRS benefits costs of applicable salary increases provided by the bill would be $33.0 million in fiscal year 2026, $34.5 million in fiscal year 2027, increasing to $42.6 million in fiscal year 2030. The cost of TRS benefits for salary increases related to teacher preparation partnerships and potential changes to the minimum salary schedule cannot be determined.The bill would amend or create other allotments and provisions the FSP as outlined in the Fiscal Analysis section above. This analysis assumes the cost to the FSP would be $3.5 billion in fiscal year 2026, $3.8 billion in fiscal year 2027, increasing to $4.6 billion in fiscal year 2030. The cost to the FSP includes estimated decreases in Recapture Payments - Attendance Credits revenue of $382.1 million in fiscal year 2026, $490.7 million in fiscal year 2027, decreasing to $479.4 million in fiscal year 2030.The analysis assumes that TEA would require 66.0 FTEs in fiscal year 2026 and 67.0 FTEs in subsequent fiscal years to implement provisions of the bill at a cost of $8.2 million in fiscal year 2026 and $8.1 million in subsequent fiscal years.
The analysis assumes that TEA would require 66.0 FTEs in fiscal year 2026 and 67.0 FTEs in subsequent fiscal years to implement provisions of the bill at a cost of $8.2 million in fiscal year 2026 and $8.1 million in subsequent fiscal years.
Technology
TEA assumes IT costs to implement the provisions of the bill would total $3,066,165 in fiscal year 2026, $8,360,177 in fiscal year 2027, and $400,132 each subsequent fiscal year.
Local Government Impact
LEAs would be required to spend certain funding increases under the bill on salary and benefit costs to provide employee compensation increases. This analysis assumes local education agencies (LEAs) would receive additional funding through the FSP under the bill.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 320 Texas Workforce Commission, 323 Teacher Retirement System, 529 Health and Human Services Commission, 644 Juvenile Justice Department, 701 Texas Education Agency, 771 School for the Blind and Visually Impaired, 772 School for the Deaf, 781 Higher Education Coordinating Board
304 Comptroller of Public Accounts, 320 Texas Workforce Commission, 323 Teacher Retirement System, 529 Health and Human Services Commission, 644 Juvenile Justice Department, 701 Texas Education Agency, 771 School for the Blind and Visually Impaired, 772 School for the Deaf, 781 Higher Education Coordinating Board
LBB Staff: b > td > JMc, NC, ASA, MJe
JMc, NC, ASA, MJe