On Thursday, October 19, the Texas House Public Education Committee Chair Brad Buckley filed House Bill 1, which establishes an education savings account (ESA) voucher program, while also providing funding for public education programs and provisions related to teachers. 

HB 1 would earmark $10 billion in one-time and ongoing appropriations for schools, teachers, and the Texas Education Agency. The bill includes about $2 billion for a $30 increase in the basic allotment for 2023-24, raising it to $6,190. It would then increase to $6,500 in 2024-25, and beginning in 2026, the basic allotment would include an inflationary adjustment based on the Texas Consumer Price Index. As a reminder, the basic allotment has not been increased since 2016, despite 17% inflation over that time, and it would take an increase of more than $1,000 just to restore school districts to the same funding level that it experienced seven years ago. 

The bill also increases the amount of basic allotment increases that must be applied to staff compensation from 30% to 50%. It adds a one-time teacher retention bonus that would give full-time employees $4,000, subject to the minimum salary schedule, and $2,000 to part-time teachers, counselors, nurses, and librarians for 2023-24. 

HB 1 moves the special education allotment to an enrollment-based method of calculation, increases the transportation allotment for students receiving these services, requires the commissioner to develop seven tiers of intensity of service for funding purposes, and provides $500 for special education evaluations. 

ESAs, as created in HB 1, would provide 75% of the statewide per-student funding average amount to any individual who: 

• is eligible to attend public school and attend a public school for 90% of the previous school year; 
• is entering kindergarten or pre-kindergarten; or
• attended private school or a home school the previous year. 

According to TASB, the latest PEIMS data from TEA shows that operating revenue from the state general fund for public school is $9,893, which would make the ESA amount about $7,420. These vouchers could be used for tuition and fees, instructional materials, tests, tutors, transportation, and educational therapies. Homeschool students would be eligible to receive $1,000 for curriculum and transportation. 

HB 1's ESA program would be overseen by the Comptroller's Office, which would be entitled to up to 3% of funds dedicated for the program. The Comptroller would be able to select one or more "educational assistance organizations" to execute the program, which would include accepting applications, approving applicants, and disbursing ESAs. In the first year of the program, 25,000 students would be allowed to receive ESAs, with an additional 25,000 more each year until 2026-27. The ESA program in HB 1 would expire on September 1, 2027, unless reauthorized by the legislature, but students already in the program would receive funds until they are not longer eligible to attend public school. 

Click here to read the full text of HB 1.