Texas Senate takes up $8 billion public school funding bill

The Texas Senate K-16 Education Committee convened Thursday to deliberate a landmark school finance bill that would pour more than $8 billion in new state funding into public education, setting the stage for what lawmakers are calling the most ambitious school investment package in state history.

The bill under discussion is the Senate’s substitute for House Bill 2 (HB 2), part of the Texas House’s “Texas Two Step” education funding initiative. Though the House passed its version of the bill nearly unanimously in April (144-4), the Senate's reworked version includes several significant adjustments—many of which sparked immediate debate among educators, lawmakers, and advocates.

Teacher Pay Raises Take Center Stage

A cornerstone of both versions of HB 2 is increasing teacher compensation. The Senate proposal maintains the goal of substantial raises but varies the structure.

Teachers in districts with 5,000 students or fewer would receive:

$5,000 if they have 3–4 years of experience

$10,000 for those with 5+ years

In larger districts, the raises are lower:

$2,500 for teachers with 3–4 years

$5,500 for those with 5+ years

In addition, the bill expands the teacher incentive pay system, introducing a new “acknowledged” category alongside the previous "recognized," "exemplary," and "master" levels. Top-performing teachers could receive bonuses as high as $36,000 under this structure—an increase from previous caps.

Senate Education Chair Sen. Brandon Creighton (R-Conroe) emphasized that these are not temporary stipends, calling the raises a "new commitment in our budget culture."

Changes to the Basic Allotment and Allotment Strategy

The Senate version increases the basic allotment by $55, bringing in $800 million in new funds, though critics argue the raise is modest relative to inflation and rising district costs.

Creighton highlighted that the bill shifts the weight of education funding from local districts to the state, a move he says will offer districts more flexibility. "We’re shifting billions...off of the basic allotment to the state permanently," he explained, marking a break from historical funding patterns.

The proposal also earmarks:

$500 million for school safety

$255 million for charter school facilities

Over $300 million for small and mid-sized district funding

Creighton said these amounts bring the total investment in public education for the biennium close to $100 billion, with HB 2 alone accounting for $8 billion in new money—four times the typical amount added in past legislative sessions.

Tensions Over Senate Changes

While the Senate committee maintained several components of the House's original HB 2, Democratic lawmakers and education advocates voiced concerns that key elements had been weakened or removed. The Texas House Democratic Caucus circulated a flyer claiming that the Senate had “gutted” the bill. “The House offered our starving schools crumbs; the Senate is now offering no more than dust,” the handout read.

Concerns were also raised about the bill’s use of the “golden penny” mechanism, a complex funding tool that allows districts to levy extra taxes for enrichment funding. Sen. Jose Menendez (D-San Antonio) questioned whether this tool disproportionately benefits property-rich districts. Creighton responded that the state’s funding formula includes weights to assist property-poor districts but acknowledged disparities in local revenue generation.

Public Testimony Highlights Gaps and Priorities

During the committee hearing, a broad cross-section of stakeholders provided testimony. Educators called for more support for school support staff, such as bus drivers and cafeteria workers, who are not included in the current compensation increases. Others pushed for the restoration of a fine arts allotment, which was in the original House version but removed in the Senate draft.

“Everyone in a school community deserves recognition and support,” said one elementary principal during public testimony. “We can’t build excellence on the backs of underpaid support staff.”

Inflation, Equity, and Long-Term Vision

With Texas facing rising inflation and higher costs of living, some lawmakers, including Sen. Royce West (D-Dallas), pressed for assurances that districts would be able to cope with escalating expenses.

Creighton responded by underlining the scale of the investment: “We are at a four-X factor on new dollars... We still fought for and garnered a huge percentage of this surplus to make sure that we can set a new tone, culture, and commitment to our schools and our teachers.”

What’s Next

At the end of the hearing, the committee left HB 2 pending for a future vote, signaling that further negotiations and amendments are likely before the bill reaches the Senate floor.