On Wednesday, April 16, 2025, the House is set to conduct a floor debate of HB 2 relating to school finance.
The bill was substituted in committee before being voted out on April 3. House Public Education Committee Chairman Brad Buckley emphasized to his colleagues on the committee that he would work with House members on the bill because parts of it still needed work and that there would be opportunities to amend the bill on the House floor.
It’s our understanding that an amendment will be offered that will fix several problems related to hold harmless provisions in HB 2. A cursory review of a variety of types of school districts shows improvements in funding to those school districts negatively impacted by these provisions. We encourage school districts to reach out their state representatives for their latest district runs.
HB 2 provides almost $8 billion in new funding for public schools. We are encouraging members to call their House members in support of HB 2 and share any issues of concern with them prior to the bill being debated on Wednesday.
Once the House passes HB 2, it will go to the Senate for consideration.
Highlights of HB 2 Committee Substitute
- Increases the Basic Allotment (BA) to $6,500 with a guaranteed yield increment factor (GYIA) of $55 for the 2026-27 biennium. Increases the percentage school districts must spend on salary increases from 30 to 40 percent prioritizing teachers with more experience.
- Increases the small district weight from .0004 to .00057.
- Increases the midsize district weight from .000025 to .00003.
- For districts with fewer than 300 students in a county with no other school districts the weight increases from .00047 to .0006.
- Increases the comp ed allotment weights from .275 to .28 and the bilingual education weights by .02.
- Creates a fine arts allotment weight in grades 6-12 of .008 per ADA. Limits the total state expenditure for the program to $15 million per year.
- Caps Tier 2 golden penny yield at $129.52. Links the copper penny yield to the BA ($6,500) x .008.
- Moves funding for special education to intensity of services-based funding.
- Provides an allotment of $1,000 for special education evaluations.
- Requires the commissioner to adjust school districts’ enrollment and ADA for each six-week interval instead of waiting until settle-up.
- Provides relief for school districts that fail the property value study. School districts would be held harmless at different percentages over several years.
- Prohibits school districts from employing uncertified teachers in foundation courses. Exemptions are allowed for courses other than reading and math as follows:
- For the 2026-27 school year, no more than 20 percent
- For the 2027-28 school year, no more than 15 percent
- For the 2027-28 school year, no more than 10 percent
- For the 2028-29 school year, no more than 5 percent
- Creates the Retiree Educator Reimbursement Grant, which would reimburse school districts for TRS costs associated with hiring retirees (surcharge).
- Creates a Grow You Own Partnership Program, which allows school districts, educator prep programs, and higher education institutions to partner together find solutions to the low availability of qualified classroom teachers.
See who represents you in the Texas House and look up their contact information.
Watch the floor debate online.
