Across the Lawn – March 14, 2025

One Thing to Do: Listen to our Latest Podcast Episode

Listen to our latest episode of Intersect Ed as it explores the early education challenges faced by both Texas public pre-schools and child care providers.

Current half-day pre-K funding forces public school districts in Texas to cover costs for their state-mandated full-day programs. At the same time, many Texans can’t afford traditional child care. Our guests discuss successful initiatives and how Texas legislative action can improve the futures of Texas’ youngest children.

Five Things to Know:  

1. House Committee on Public Education Hears Voucher Bill, House Bill 3 (HB 3)

The House Committee on Public Education convened on Tuesday, March 11, at 8:00 a.m. and continued its meeting through the early hours of Wednesday, March 12, finally adjourning at 6:30 a.m. The marathon session was dedicated to discussing HB 3 by Rep. Buckley. Over the course of nearly 23 hours, with a break to meet on the House Floor, a diverse lineup of witnesses provided testimony, all addressing a broad spectrum of topics and concerns related to the bill.

Witnesses raised concerns a voucher program would divert critical funding away from public schools, further straining already underfunded public schools. Testimony also highlighted the lack of accountability for private schools receiving public dollars, as they are not held to the same transparency and academic standards as public schools. 

HB 3 bill creates a universal Education Savings Account (ESA) program similar to Senate Bill 2 (SB 2) by Sen. Creighton. There are more similarities than differences between these bills. Both bills allow the Comptroller to certify up to five educational assistance organizations to help administer the program, which would begin during the 2026-27 school year. Both the Senate and House budget proposals include $1 billion for the first year of this program. 

The major differences are how the students will be prioritized in a lottery if there are more applicants than available state funding, and whether or not the ESA amount should be a flat amount per student or based on a percentage of per-student funding for public school students. The Senate bill is currently a flat amount ($10,000), and the House bill is a percentage (85% of state and local funding for public school students).  

HB 3, as filed, was left pending in committee and allows for the following: 

• Eligibility of Students:
  • Students who attended a public school for 90% of the previous year.
  • Students entering pre-K or kindergarten.
  • Students who attended a private school or were homeschooled the previous year.
• Prioritization of Students:
  • If applications exceed capacity, students will be prioritized as follows:
    • Children with disabilities and household income below 500% of the federal poverty guidelines.
    • Children from households with income below 200% of the federal poverty guidelines.
    • Children from households with income between 200% and 500% of the federal poverty guidelines.
    • Children from households with income above 500% of the federal poverty guidelines.
  • The Comptroller is required to maintain a waiting list for those not receiving funding.
  • Private schools are not required to accept priority students.
• Annual ESA Amount Per Student:
  • Each student receives 85% of state and local revenue allocated to a public school student under the Foundation School Program.
  • Special education students: ESA amount based on Individualized Education Program (IEP), up to $30,000.
  • Homeschool students: $2,000 annually.
• Eligible Expenses:
  Tuition and fees (private school, higher education, online courses, industry-based credential programs).
  • Textbooks, instructional materials, and uniforms.
  • Public school classes/services (non-ADA eligible).
  • Academic assessments.
  • Private tutoring or teaching services.
  • Transportation to education services.
  • Educational therapies not covered by Medicaid, CHIP, or insurance.
  • Computer hardware/software (capped at 10% per year).
  • Breakfast or lunch at private schools.
  • No payments to relatives within the third degree.
• Testing and Accountability:
  • ESA participants must undergo annual administration of a nationally norm-referenced assessment or the STAAR exam.
  • Private schools and vendors are not subject to A-F accountability ratings.
• Special Education Service Notification:
  • Parents must be notified that private schools or vendors are not subject to federal or state laws regarding special education services in the same way as public schools.
• Out-Year State Cost: 
  • This analysis assumes that the cost of the ESA program in fiscal year 2027 would be limited to $1.0 billion, including administrative costs. In subsequent years and based on assumptions outlined above, this analysis assumes the cost of the ESA program could be $3.3 billion in fiscal year 2028, $3.7 billion in fiscal year 2029, and $4.8 billion in fiscal year 2030.
• Education Assistance Organizations:
  • The Comptroller may certify up to five educational assistance organizations to help administer the program.
• Comptroller Audit and Reporting:
  • The Comptroller will contract with a private entity to audit ESA accounts and eligibility data at least annually.
  • Educational assistance organizations will compile data and produce an annual longitudinal report.
• Promotion of ESA Program:
  • The Comptroller or designee may enter contracts and use marketing, advertising, and other promotional activities to develop and market the ESA program.
  • Program funds may be used for marketing and outreach.

2. Senate Committee on Education K-16 Discusses Numerous Bills, including Funding for Special Education

The Senate Committee on Education K-16 discussed five bills on Tuesday, March 11, including Senate Bill 568 (SB 568) by Sen. Bettencourt relating to special education in public schools. 

SB 568, as filed, uses many of the recommendations the Texas Commission on Special Education Funding developed in its 2022 report to the Legislature, including: 

• Moves to an intensity of services-based funding formula for special education based on seven tiers of intensity and service groups.
• As part of the monitoring system, the Texas Education Agency (TEA) may require a school district to obtain specialized technical assistance for a documented noncompliance issue or if data indicates that technical assistance is needed. 
• $500 allotment for initial evaluation for the school district providing service (reduced to $250 million in committee substitute).
• Provides autism and dyslexia grants.
• Creates a grant to support the recruitment of special education staff.
• Annual meeting requirement for each board of trustees or charter school governing board using performance indicators adopted by the TEA.
• Funding for Education Service Centers (ESC) for each day placement made available in partnership with a school district, charter, or shared services arrangement:
  • $250,000 for the first year of operation.
  • $150,000 for each subsequent year.
• Doubling of the College, Career, or Military Readiness Outcomes Bonus (CCMR) for special education to $4,000.

Increase in the special education transportation rate by $0.13 per mile.

3. Department of Education Cuts Staff in Half 

Late Tuesday night, March 11, the Department of Education announced mass layoffs, reducing its workforce by nearly 50%, with 1,315 employees receiving notifications of being placed on administrative leave and 2,183 remaining at the agency. 

“Today’s reduction in force reflects the Department of Education’s commitment to efficiency, accountability, and ensuring that resources are directed where they matter most: to students, parents, and teachers,” said Secretary of Education Linda McMahon. Secretary McMahon stated it will continue delivering all statutory programs, including formula funding, student loans, Pell Grants, funding for special needs students, and competitive grantmaking. 

Eliminating nearly half of the Department of Education workforce raises concerns about the department’s ability to effectively manage programs like Title I and Individuals with Disabilities Education Act (IDEA) programs, potentially leading to slower processing times, reduced oversight, and weaker enforcement of federal education policies.

Find out more about what the Department of Education does here. 

4. Legislative Bill Filing Deadline is Today

The deadline for filing bills and joint resolutions other than local bills, emergency appropriations, and emergency matters submitted by the Governor is today, Friday, March 14. 

After today, we will have over 1,000 public education-related bills filed for the 89th Legislative Session. Some of the major bills on the move include: 

• SB 2 & HB 3 (Education Savings Account)
• SB 12 (Parental Rights) 
• SB 26 (Teacher Pay)
• SB 27 (Teacher Rights)
• HB 2 (School Funding/Teacher Workforce)
• SB 568 (Special Education Funding)
• SB 4 & HB 8 (Property Tax Relief)

5. The House Committee on Public Education to Hear Numerous Bills Next Week

The House Committee on Public Education has posted a hearing for Tuesday, March 18, at 8:00 a.m. The bills include policies on student discipline, kindergarten readiness, school safety, and cell phone bans during school instructional time.