Public School Funding System Reform
Maintain funding for all components of House Bill 3, the comprehensive public school legislation adopted by the 86th Texas Legislature.
Prior to the 86th legislative session in 2019, the system of funding Texas public schools was outdated, inequitable, and insufficient for the needs of the state’s diverse student population. Over the past decade, the state had decreased its share of public education funding, with rising local property taxes making up the difference.
In 2019, the legislature passed HB 3, which overhauled the mechanisms by which public schools are funded.
SELECT COMPONENTS OF HOUSE BILL 3
• Includes about $6.5 billion in new public education spending, plus about $5.1 billion devoted to lowering Texans’ property tax bills
• Increases per-student base funding by about 20%, raising the basic allotment from $5,140 to $6,160
• Includes money to give teachers raises and fund free full-day pre-K for eligible 4-year-olds, and reduces the amount of money wealthy districts must spend to subsidize poor districts through the state’s recapture program, known as “Robin Hood
• Includes money for districts that want to start merit pay programs, giving bonuses of between $3,000 and $12,000 to higher-performing teachers; provides incentives for highly-rated teachers to work in high-need, rural school districts
• Lawmakers have estimated that the bill will lower tax rates by an average of 8 cents per $100 valuation in 2020 and 13 cents in 2021. That would mean a tax cut of $200 for the owner of a $250,000 home in 2020 and $325 in 2021.
Learn more about House Bill 3 here.
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