Texas Education Agency proposes $88.8 billion funding increase for schools

The Texas Senate Committee on Finance convened on February 10, 2025, to discuss significant budgetary recommendations for the Texas Education Agency (TEA) and related transportation costs. The meeting highlighted a substantial increase in funding needs, particularly in the context of rising transportation expenses and educational funding.

During the session, it was revealed that transportation costs have surged to approximately $2 million annually, more than doubling in recent years due to heightened demand for charter buses during the COVID-19 pandemic. The discussion noted that local transportation contracts have seen rates increase dramatically, with some quotes rising from double to nearly quadruple the previous amounts. For the upcoming biennium, the total projected cost for transportation is estimated at $7.6 million, which includes local staffing and transportation for students returning home on weekends.

The committee also reviewed the TEA's funding recommendations, which propose a total of $88.8 billion across all funds, marking a 16.1% increase from the previous biennium. A significant portion of this increase, $71.3 billion, is allocated to the Foundation School Program (FSP), which supports public education funding. The recommendations include $39.6 billion from general revenue, reflecting a $7.9 billion increase, primarily driven by property tax relief measures.

Key budget drivers discussed included projected growth in student populations, which is expected to incur additional costs of $1.7 billion. The committee also addressed property value growth, which is anticipated to affect tax rates and funding allocations. Notably, the recommendations include $51 billion for property tax relief, encompassing various measures to maintain and enhance existing tax relief programs.

The meeting concluded with a commitment to further analyze the implications of these funding recommendations and their potential impact on Texas education and transportation services. The committee plans to incorporate updated projections into future budget discussions, ensuring that the needs of Texas students and educational institutions are adequately met.