Texas public schools to see $8.5B funding boost, teacher raises after Gov. Abbott signs bill

HB 2 includes a $55 increase to the base amount of per-student funding schools receive from the state. Districts can use these funds, known as the basic allotment, for a variety of needs, including purchasing classroom materials, renovating facilities and paying teachers or staff.

The $55 basic allotment increase falls short of a $395 boost proposed in an earlier version of the legislation, with some school leaders requesting a roughly $1,300 increase to keep up with inflationary costs.

However, over a dozen school associations and advocacy groups praised lawmakers’ work on HB 2 after the bill was sent to the governor May 29. Education leaders noted the range of initiatives funded by the bill and said it would provide a “lifeline” to cash-strapped schools.

“Texas students deserve the highest quality education that our schools can provide, and that requires significant resources from the state,” the Texas Classroom Teachers Association said in the May 29 statement. “HB 2’s $8.5 billion investment in teachers and schools, much of it flowing directly into classrooms, represents a targeted approach to providing the support and assistance our students and teachers need.”

Put in perspective

Before the Texas House gave final approval to HB 2 on May 29, Rep. James Talarico, D-Austin, questioned why lawmakers had not passed “comprehensive” school finance legislation since 2019, when they raised base per-student funding from $5,140 to $6,160.

“For six years, we have been unable or unwilling to provide the real funding needed to stop school closures, stop [budget] cuts and stop teacher layoffs,” Talarico, who voted in favor of HB 2, said.

State senators noted May 22 that HB 2 will restructure portions of Texas’ school finance system. The bill includes $1.3 billion that schools can spend on various fixed costs, such as health insurance, teacher pensions and transportation. Senators said this could reduce districts’ reliance on the basic allotment and give them more spending flexibility.

“Everything is not flowing through a basic allotment anymore,” Sen. Royce West, D-Dallas, said on the Senate floor. “We have different allotments specified for specific purposes.”

During the June 4 event, reporters asked Abbott why Texas did not pass a school funding package during the 2023 legislative session, when lawmakers had a nearly $33 billion budget surplus at their disposal.

“We were dealing with one-off education budgetary issues [during the 2021 and 2023 sessions],” Abbott said. “We had a massive influx of billions upon billions of dollars from the federal government during the time of COVID[-19], and that funding was there to fully fund education. This year, we don’t have that—and that’s why it was necessary that Texas step up this time and make sure we provide funding in a record form.”

Breaking down the bill

HB 2 establishes a $3.7 billion teacher retention allotment, which will be used to provide permanent raises for teachers with at least three years of classroom experience. The legislation includes larger raises for teachers in small school districts, which bill sponsor Sen. Brandon Creighton, R-Conroe, has said will help close a pay gap between urban or suburban and rural teachers.

In districts with 5,000 students or less, teachers with three to four years of experience would receive a $4,000 raise, while those with at least five years of experience would receive an $8,000 boost. In districts with over 5,000 students, educators with three to four years of experience would get a $2,500 raise, and more experienced teachers would earn a $5,000 raise, according to the bill.

“For the first time in Texas history, that pay raise will continue beyond this biennium,” Creighton said in May. “In the past, we've heard those pay raises called ‘stipends’ and ‘bonuses.’ That is not what we have in this legislation.”

School support staff will also receive pay raises under a new $500 million allotment.

The bill also expands the Teacher Incentive Allotment, a program designed to put teachers on the path to a six-figure salary. Educators recognized under the TIA will be eligible to receive up to $36,000 per year on top of their general salary. The current maximum boost is $32,000.

According to previous Community Impact reporting, the 231-page bill also spends:

• $850 million on overhauling special education funding to allocate resources based on students’ individual needs, rather than where they receive services
• $433 million to help young students succeed in reading and math
• $430 million for schools to spend on school safety equipment and initiatives
• $200 million on teacher preparation and certification, including stipends to prospective teachers who complete educator certification programs

“These kids standing up here with us and all around this room, they are the top priority,” Creighton said at the June 4 bill signing ceremony. “These kids and those coming soon, they will define the Texas economic miracle for generations.”