13 days remain in the 87th Regular Legislative Session.
Senate version of HB 3 Clean-Up Bill
The Senate's version of CSHB 1525 (Huberty/Taylor) was placed on the Senate intent calendar today and therefore could be considered by the Senate as soon as tomorrow, Wednesday, May 19.

As reported last week, CSHB 1525 includes the same changes for CTE funding and the Fast Growth School Allotment as passed by the House, but the new provisions added in the Senate threaten funding for public schools, and make the clean-up bill quite a mess. You can read our section-by-section side-by-side comparison of this Senate version compared to the version that was passed in the House.

The Senate's CSHB 1525 would place on a cap on the total Formula Transition Grant funding, which would trigger proration and funding reductions for FTG districts if the total amount required exceeds $400 million. CSHB 1525 would also allow the Commissioner to "adjust" (meaning reduce) school district entitlements to ensure state compliance with MOE and MOQ requirements in the federal legislation. Additionally, the bill would require all districts that receive federal ESSER dollars to set aside an amount from state and local M&O funding (which Taylor said would be equal to 40% of their total federal ESSER allocation) in the district's fund balance which may not be used until 2024-25 without special permission from the Commissioner to do so.

This is a matter that impacts all school districts. We are concerned that the state would be requiring local districts to supplant funding at the local level in a manner that sets up an easier road to state funding cuts for schools when the Texas Legislature convenes in 2023. Federal COVID Relief dollars should be used on top of school district funding entitlements -- not instead of.

Click here to look up contact info for your Senator. Please click on the red button below to access communications tools (such as sample messages and posts).
School District Impact of HB 1525
Yesterday, the the Legislative Budget Board (LBB) released model runs to show the estimated impact of the Senate's CSHB 1525 per-district.



As you review these LBB runs and the detailed runs specifically for your district that are available via the link below, we ask that you keep a few things in mind:

There are really only two sections of HB 1525 that are driving changes in district funding amounts shown in these models (and since these two sections are essentially the same in both the House and Senate version, you will see very little difference in the numbers for the two versions):
  1. The CTE Allotment undergoes two changes in HB 1525: it is applied to small and mid-sized districts AND it is changed so that a system of tiered funding is used, depending on whether the courses in which CTE students are enrolled as approved courses and approved courses at which level.
  2. The Fast Growth Allotment is changed so that it no longer applies to all districts in the top 25% of enrollment growth, but rather to those that experience growth of more than 250 students over 6 years; there is a hold harmless provision (of sorts) that allows districts that received this allotment in 19-20 to still receive a limited share of the allotment next year.

What is not shown in these models could be as important as what is. Specifically:
  1. Any adjustment to school district funding formula entitlements performed by the Commissioner of Education under Section 25 of the bill is not something that can be modeled at this time. Additionally, the requirement to bank an amount to be determined by TEA of the district’s funding entitlement in the district’s fund balance is not shown in this model.
  2. At this time, the model is not indicating that a limit of $400 million per year for the Formula Transition Grant in Section 24 will trigger proration as the amount is not expected to exceed that amount. However, many models were wrong in 2019 about the amount of funding required for the FTG, and these models are based on the same TEA data the produced faulty models in 2019. Districts would not be aware of whether proration would occur until after the budget cycle is closed and settle-up occurs. If the numbers are wrong in even a few districts, that could cause the total amount to exceed $400 million and result in proration for all FTG districts that could cause an FTG reduction of 10%, or even as high as 25% of each district’s FTG allocation.
If you have any issues accessing your district's model run or if you have any questions, please contact christy@txsc.org.
What's happening this week?
Texas Senate
In addition to what was reported above regarding expectations for the Senate to hear CSHB 1525 this week, here is what is happening in the Senate.

The Senate Education Committee will meet today, beginning at 9:00 a.m. to hear the following House bills:

  • HB 750 (Burns/Perry) requires districts to post employment policies online.
  • HB 999 (Bernal/ Menéndez) authorizes individual graduation committees to determine a student’s eligibility to graduate without satisfactory EOC performance during the 2020-21 or 2021-22 school years.
  • HB 1068 (Allen/Lucio) allows school district employees to use personal leave time during school holidays.
  • HB 1461 (Parker/Creighton) calls for a TRS study on health reimbursements accounts in conduction with Medicare plans for certain retirees.
  • HB 2497 (Parker/Creighton) establishes the Texas 1836 Project.
  • HB 2519 (Darby/Zaffirini) changes the composition of SBEC to include representatives of small and mid-size districts; revises the deadline for teacher contract abandonment to allow resignation without penalty before the start of a school year and changes SBEC requirements to notify a teacher regarding a complaint or suspension.
  • HB 3261 (Huberty/Taylor) allows TIMA funding to be used to ensure connectivity and bandwidth for electronic assessment instruments, and also requires assessments at the state and local level as to the cost of these technological needs, and prohibits SBOE from issuing proclamations that require use of more than 75% of the TIMA.
  • HB 3449 (Price/Perry) Includes of a licensed chiropractor or physical therapist on a concussion oversight team and expands the list of persons with authority to remove a student from practice or competition following a concussion.
  • HB 3643 (King, Ken/Taylor) creates the Texas Commission on Virtual Education.
  • HB 3932 (Bernal/Menéndez) establishes the State Advisory Council on Educational Opportunity for Military Children.


The Senate Education Committee is expected to have one more public hearing (on Thursday) this session, and any other business that needs to be conducted will likely happen in impromptu hearings without public testimony.

Yesterday, the Texas Senate passed SB 2094 (Taylor). This bill is very similar to HB 4545, which was passed by the House (following a reconsideration of the vote on which the bill failed the first time). However, the big difference between the two bills is that SB 2094 includes language for an outcomes-based bonus tied to whether students who have previously failed to pass a state assessment then pass that same assessment on a subsequent attempt.

Also, the Senate Committee on State Affairs gave favorable consideration to HB 3979 (Toth/Creighton), which is the bill that would prohibit teaching and teacher training on certain matters related to certain social studies curriculum on the basis of race and sex. The bill would also prohibit a school from accepting private funding for the purpose of developing, purchasing or selecting curriculum materials, or providing teacher training for a course described by this bill for the teaching on certain matters related to race and sex. The bill will move forward for consideration by the full Senate (which has previously passed the companion bill, SB 2202).


Texas House
One final public hearing of the House Public Education Committee is expected to take place today upon adjournment of the House, as they take testimony on SB 1716, which would establish a supplemental special education services and instructional materials voucher program for students enrolled in a special education program at a public school. TEA would provide up to $1,500 to parents who would direct purchases of services and materials through online accounts. The bill is expected to cost approximately $30 million each year.

SB 1365 (Bettencourt/Huberty) is on the House calendar for Thursday, May 20. This is the bill that relates to school district governance, accountability, and fiscal management that greatly broadens the Commissioner's authority. You may remember the companion to this bill, HB 3270 (Dutton), which died on a point of order in the House.

The House Public Education Committee met yesterday and voted the following nine bills out of committee.

  • SB 369 (Kolkhorst) requires high school counselors to provide notice of FAFSA availability before noting that a student did not choose to complete a financial aid form.
  • SB 776 (Lucio/Dominguez) requires UIL to develop an inclusive sports program for students with disabilities
  • SB 797 (Hughes) requires display of the United States national motto “In God We Trust” in a conspicuous place in each building of the school.
  • SB 1191 (Seliger) clarifies the definition of a “school resource officer” does not include a peace officer who performs law enforcement duties only for school extracurricular activities or events.
  • CSSB 1696 (Paxton) establishes a system for the sharing of information regarding cyber attacks or other cybersecurity incidents occurring in schools in this state. Requires the district’s cybersecurity coordinator to report to TEA any cyber attack or other cybersecurity incident against the district. Committee substitute exempts charter schools from the requirement.
  • SB 1697 (Paxton/King, Ken) requires that students receiving a passing grade or high school credit for a course retain their original grade even if they retake the course, unless the school district adopts a local policy to the contrary. Also grants commissioner authority to exclude certain students in these instances from being considered “at-risk” and allows for a student to be considered for the average daily attendance for a repeated course, even if they already received a passing grade or credit.
  • SB 1955 (Taylor) ensures local municipalities cannot attempt to regulate learning pods; prohibits local or school district employees from conducting site inspections or investigative visits, or taking any action to discriminate against or distinguish anyone (parent, student, or teacher) participating in a learning pod, or force any forms of registration or reporting to any authorities relating to the operation of the learning pod.
  • SB 2066 (Menendez) updates out-of-date terms in statute like “limited English proficient” student and “English learner” to “emergent bilingual” students. 
  • SB 2158 (Campbell) requires TEA to provide identification kits to schools for distribution to the parent or legal custodian of certain students in K–6th grade.
Post-Legislative Workshop - June 9
We hope you can join us as we rehash the good, the bad, and the ugly from the 87th Irregular Session at our Post-Legislative Workshop on Wednesday, June 9, from 10:00 a.m. until 2:00 p.m. in Dallas at the DoubleTree by Dallas Love Field.

You can register via the link below to attend in person and also find the info you need to make hotel reservations for a discounted rate if you plan to stay overnight. The deadline for the discounted rate on hotel rooms is May 30.
Wed, Jun 9, 2021 10:00 AM CST
Post-Legislative Workshop 2021
DoubleTree by Hilton Hotel Dallas - Love Field, Dallas
If you are not able to join us in person, but still want to join in on the fun, please click on the button below to register and attend virtually via Zoom.
Thank you to our annual sponsors!
601 Camp Craft Road
Austin, Texas 78746
512-732-9072