The education of 4.3 million public school students is one of the state's top priorities, with some of the biggest battles in the Capitol raging over private school vouchers, curriculum, graduation rates, school accountability, teacher pay and how to fund it all.

This session, lawmakers turned their attention to the quality of education and passed sweeping changes for the state.

"We want to make sure our kids are prepared for the world outside, make sure every kid is educated and can be a contributing member of society," said Rep. Bennett Ratliff, R-Coppell. "With that said, we've got taxpayer money that we need to be accountable for, so we've got to make sure we are spending the taxpayer money wisely and getting bang for our buck. So where's the balance in there? That's what we struggle with."

Funding

Lawmakers reached a deal May 26 to restore $3.9 billion in public education funding. Two years ago, more than $5 billion was cut during a budget crunch.

"The schoolchildren, parents and taxpayers of Texas have won an important first battle in the effort to restore the disastrous cuts," said Sen. Wendy Davis, D-Fort Worth, who forced the Legislature into a special session in 2011 to protest the cuts.

Testing changes

Both Republicans and Democrats said one of the biggest complaints they heard between sessions was that students in the state's 1,400 high schools were taking too many tests. Another complaint: Nearly half the ninth-graders in the state failed at least one of the state's mandatory achievement tests.

Under the State of Texas Assessments of Academic Readiness system that began with the 2011–12 ninth-grade class, students took 15 end-of-course exams in 12 subjects before they could graduate.

With House Bill 5, the state will now reduce that to five standardized tests: English I, English II, algebra I, biology and U.S. history. Districts can also offer diagnostic tests in algebra II and English III that will not count toward accountability ratings.

"We have reached the point at which testing is interfering with learning," said Sen. Jane Nelson, R-Flower Mound. "This session we passed legislation that will allow students to focus on the curriculum, not just the test, while maintaining high standards. I believe our students will rise to the level of expectations we set for them."

Graduation standards

The House and Senate also changed graduation standards in legislation passed just before the regular session ended May 27.

The current system with minimum, recognized and advanced degrees has been lauded as leading to record-high graduation rates but has been criticized for turning out low-performing graduates.

Bill Hammond, president of the Texas Association of Business, told a judge during the school finance trial earlier this year that a lack of qualified graduates "is a looming crisis because of our aging workforce. It will be devastating."

The House and Senate agreed on a 24-credit foundation high school program that allows for endorsements — specialty designations or emphases in areas such as art, science or math — so freshmen can tailor their curriculum to suit future career choices.

Lawmakers rejected a plan favored by Houston Republican Sen. Dan Patrick, chairman of the Senate Education Committee, which would have required four years each of math, science, English and social studies but which would have allowed for specialties in certain areas.

School accountability

Schools and districts currently undergo an annual rating system based on the EOC test scores. They then receive a rating: Exemplary, Recognized, Academically Acceptable or Academically Unacceptable.

Individual campuses will still be subject to the four-label system, but a new rating system approved by the House and Senate changes that to an A–F rating for school districts; those ratings are based on academic and financial performance as well as on community and student engagement.

Teacher retirement

Lawmakers also were seeking to stabilize the Teachers Retirement System, boost pensions of retired teachers and give them a 3 percent cost-of-living increase, the first in a dozen years.

The TRS has more than 1.3 million members and provides about 300,000 pensions to retired teachers.

Lawmakers said retired teacher health care would likely be addressed in the 2015 session.

Davis applauded the Senate vote to "amend the teacher retirement reform bill to increase pension and health care benefits by nearly $180 million."

"The additional funds would come from existing resources and would continue the solvency of the Teacher Retirement System without an increase in taxes," she said. "Passage of this important legislation could not have been possible without the tireless work of senators and stakeholders determined to find middle ground after days of negotiation."