Lengthy school finance bill filed in the Texas House

Date Posted: 2/28/2025 | Author: Heather Sheffield
House Public Education Chairman Brad Buckley (R–Salado) plans to roll out his omnibus school finance bill, House Bill (HB) 2, next Tuesday, as the first bill to be heard by the committee.
The immense 148-page bill, which attempts to make sweeping changes to Texas public education, includes education funding, new grants, changes to teacher preparation programs, certification funding and the Teacher Incentive Allotment, expanded special education services, funding and oversight, and changes to the education code, as well as various other programs and funding based on the Legislature’s agreeing to appropriate them.
Of particular significance, the bill proposes a (somewhat meager) increase of $220 to the Basic Allotment (BA), raising it from $6,160 to just $6,380. Under current law, an increase to the BA triggers an increase in educator compensation. As filed, HB 2 increases the percentage of new dollars in the BA required to go to educator compensation from 30% to 40%. If passed as currently drafted, this should produce, on average, an approximate required compensation increase of $2,750 for classroom teachers, librarians, counselors, and nurses, as well as an approximate required compensation increase of $900 for other non-administrative staff. Actual numbers will vary from the average by district (potentially dramatically).
The chairman is splitting his introduction of HB 2 into two hearings. On March 4, he will “lay out” (briefly explain) the bill and hear invited testimony—likely school finance experts and Texas Education Agency (TEA) staff. On March 6, the committee will hear public testimony. The ATPE Lobby Team will be listening intently to the Tuesday hearing and will proffer testimony at Thursday’s based on both our reading of the bill and the invited testimony and committee interactions from the first hearing. We will also take in information from the first hearing to follow up here on Teach the Vote as well as create a new Advocacy Central campaign so ATPE members and public education supporters can share their thoughts on the bill directly with their own representatives.
Some of the key HB 2 provisions in the bill we are closely tracking for more explanation include:
- Certified teacher requirements: HB 2 contains language on mandates for districts around employing certified teachers for core curriculum courses starting in the 2026-27 school year, with a one-year exemption (excluding reading and math courses above fifth grade).
- Teacher Incentive Allotment (TIA): The bill expands the current TIA program and creates a local optional teacher designation system grant.
- Special education funding: HB 2 allocates $1.8 billion to transition special education funding to an intensity of service model. HB 2 also provides districts $1,000 per special education evaluation, implements procedures to audit and monitor dyslexia program implementation, and increases outcome bonuses tied to College, Career, and Military Readiness (CCMR) for special education students.
- Pre-K expansion: The bill expands eligibility to students who require special education services and funds prekindergarten programs managed by the Texas Workforce Commission and Texas A&M University System.
- Compensatory education: HB 2 raises the compensatory education allotment by approximately $32 per student.
- Small and mid-sized district support: HB 2 provides $1.1 billion to significantly increase the small- and mid-sized district allotment.
- Fine arts funding: The bill establishes a fine arts allotment of $51 per student, or $102 per educationally disadvantaged student, in average daily attendance (ADA), but caps the allotment at $15 million annually, which likely greatly reduces the per-student amount.
- Longer school year: The bill creates incentives for districts to provide additional days in the school year.
These are just a few of the many provisions in the bill. Stay tuned for additional analysis and opportunities to engage on the important topic of school funding and educator compensation.
CONVERSATION
RECOMMENDED FOR YOU

02/28/2025
Teach the Vote’s Week in Review: Feb. 28, 2025
Senate unanimously passes SB 26, its vision for teacher pay, on to House while both chambers’ education committees heat up. Plus, fact-check the fact-checkers on vouchers in the latest ATPE Podcast.

02/28/2025
Senate Education K-16 Committee hears testimony on omnibus parental rights bill
SB 12 incorporates several pieces of legislation heard Thursday by the committee, which did not take any votes.

02/28/2025
TRS executive director discusses potential impact of pending legislation
TRS board also heard reports on the impact of federal repeal of the GPO/WEP, the oldest TRS annuitant, and the upcoming TRS office relocation.
I am a textbook clerk. I work 1/2 day as an office clerk, serve as campus technology representative, textbook clerk, and work as the librarian because we don’t have one, I am the fixed assets manager. I deserve a pay raise. Consider a $1200 stipend for non clerical employees. A one stipend is taxed and will eventually come to $900. Clerks are the foundation of schools. We do not even make $19 an hour. Can you support your family on $18 an hour? We sacrifice a lot for our children.