texas public education

CSHB 1525 Threatens Funding for Public Schools

House Bill 1525 is billed as the “clean up” measure that addresses unintended consequences of school finance reforms passed in 2019. However, the Senate version of HB 1525 goes much further and could lead to funding reductions for many school districts. It would also severely limit districts’ ability to use federal education funds as intended.

Formula Transition Grant Prevents Funding Losses

The House Bill 3 school finance legislation passed in 2019 invested billions of new dollars in public education, but the new law’s changes to funding formulas left some districts with less funding. The Legislature put Formula Transition Grants in place to ensure districts received a minimum increase. FTGs make the law adopted in 2019 better than the law we had before; without it (or with it at a reduced amount), that isn’t the case.

Fund Balances Help School Districts Manage Resources

In simple terms, fund balance is the difference between assets and liabilities in a governmental fund as of the close of the fiscal year. School districts use their fund balances to responsibly manage cash flow — especially in districts that pay recapture and cannot lean on regular state funding.

Testimony on Senate & House Budget Bills

In testimony, the Coalition asked members of the Senate Finance Committee & House Appropriations Subcommittee on Article III to provide aid to schools to address the learning loss caused by disruptions, and allow for local control in the use of those dollars.

COVID-19’s Impact on Education

The coronavirus pandemic has had a profound impact on public education in Texas, and it will take years to overcome that impact.

Statement on Initial Budget Proposals

The Texas budget-writing process will play out over many months, and we encourage supporters of public education to continue to advocate for meaningful state investments in our students. These base budget proposals provide a very encouraging start.