Texas Senate passes SB2, would allow parents to use tax funds for private schools

AUSTIN, Texas - The Texas Senate on Wednesday passed a plan that would allow parents to use taxpayer dollars to fund private education.

The bill advanced to a third reading Wednesday evening despite concerns from Democrats over transparency and whether the bill would actually help low-income families.

Opponents have argued the plan would kill the funding for public schools and provide no benefits for students in rural districts that do not have access to private schools.

The Senate started a new session after an amended version of the bill passed the second reading in a 19-12 vote. 

On Wednesday night, the bill cleared the third reading and is now headed to the House.

What are education savings accounts?

Like previous bills from past sessions, the bill would create "education savings accounts" that incentivize pulling students from public school to attend private schools.

The bill would create education savings accounts from taxpayer money for families who are interested in private education over public with up to $10,000 per year per student.

Students with disabilities could get up to $11,500.

The bill would have a lottery system where 80 percent of the funds would be allocated to students who have special needs or are in low-income households.

The remaining 20 percent would be open to any student based on lottery selection.

The funds could be used to pay for private school tuition, public school costs, tutors and books. 

What's New:

Sen. Brandon Creighton took questions from both sides of the aisle defending Senate Bill 2 Wednesday.

Democrats expressed their concerns over the bill only allowing up to 100,000 students to participate in the education savings accounts that would allow parents to use public money for private school tuition.

Sen. Roland Gutierrez (D- San Antonio) argued the bill hurts rural school districts, while Creighton said the bill would help rural Texas schools, saying school choice raises the bar for all schools.

Sen. Royce West said the bill was not truly for low income students, arguing that the poorest students had the same chance as more middle class families had when it comes to the lottery to determine who has access to those accounts.

Gutierrez also expressed concern over private schools not being held to the same security and safety standards that public schools have.

What they're saying:

"You're suggesting to us that these private schools do not have to comply with anything that is a prerequisite of the school safety commission that we dropped over $100 million to ensure that our kids are kept safe," Gutierrez said.

"That's correct…but no, it's not in the ESA bill," Creighton said.

What's next:

Dozens of floor amendments were filed on SB2 Wednesday and lawmakers worked late into the evening debating and voting.

Democrats filed an amendment that would require disclosure of misconduct by school officials in private schools that were accepting savings account funds. The amendment would have required the school's administrator to report the misconduct to parents and the state education licensing board. Republicans voted no.

A less restrictive version filed by Republicans was later passed. The amendment would require expanded background checks for employees of providers that make contact with students.

Lawmakers were able to pass an amendment allowing the use of ESA funds for school uniforms and electronics provided the cost of the electronics do not exceed 10% of the account.

Democrats also tried to add more protections for students with disabilities and those who might be subject to bullying. Those measures did not pass.

An amendment to require private schools to disclose budgets if they accept public funds was also shot down.

Homeschool students did get a bonus with an amendment that adds an extra $500 for homeschool students with disabilities.

Live Updates

6:41 p.m. - It's third reading time.

6:40 p.m. - It's a new day in the Senate!

6:37 p.m. - Amendments are finished. Bill is engrossed.

6:24 p.m. - Amendment 37 - gives do not hire registry access to education providers. - passes

6:22 p.m. - Amendment 36 - collects data to determine if the program is successful - fails

6:11 p.m. - Amendment 35 - makes sure parents of private school students are notified of misconduct by faculty in public and private schools and notification of misconduct to the state board of education - fails

6:09 p.m. - Amendment 34 - a student would be able to bring legal challenges if the bill is challenged - passes

6:06 p.m. - Amendment 33 - prevents student records from being subject to public records requests - passes

6:03 p.m. - Amendment 32 - approves sending of test scores - passes

6:02 p.m. - Amendment 31 - fails

6:00 p.m. - Amendment 30 - promotion is included in comptroller's fees - fails

5:58 p.m. - Amendment 29 - shortens payment process times from 15 days to 10 days - passes

5:56 p.m. - Amendment 28 - prohibits money going to online services for traditional students - passes

5:54 p.m. - Amendment 27 - Adds that disability services can be paid by ESAs - fails

5:51 p.m. - Amendment 26 - allows savings to be used for uniforms and electronics - passes

5:50 p.m. - Amendment 25 - requires private schools to make budgets public - fails

5:47 p.m. - Amendment 24 - clarifies that open enrollment charter schools can apply to be a provider - passes

5:44 p.m. - Amendment 23 - if public dollars are used in a school, then students should go through Holocaust education - fails

5:42 p.m. - Amendment 22 - prevents discrimination in private schools - fails

5:40 p.m. - Amendment 21 - Adds bullying protection for students in private schools. - fails

5:36 p.m. - Amendment 20 - discusses accommodations for standardized tests - fails

5:35 p.m. - Amendment 19 - accreditation of new schools - fails

5: 28 p.m. - Amendment 18 - fails

5:26 p.m. -Amendment 17- allows TEA approved to become preapproved. - approved

5:21 p.m. - Amendment 16 - Allows students in higher education and career school to apply for ESAs. - failed

5:12 p.m. - Amendment 15 -  would lower income limits and add extra tiers. - failed

5:09 p.m. - Amendment 14 - Requires notice of data breaches by contractors. - passed

5:07 p.m. - Amendment 13 - Prioritizes help from a person and not automated systems - passes

5:04 p.m. - Amendment 12 - Asks that government processes are followed in purchasing. - withdrawn

5:01 p.m. - Amendment 11 - Begins an ad campaign to talk about parents' options. - failed.

4:58 p.m. - Amendment 10 - A three-year window where public districts cannot lose money. Failed

4:45 p.m. - Amendment 9 - prevents unilateral funding decisions made in the state. Failed

4:42 p.m. - Amendment 8 - Makes clear that no money from the accounts can be put into personal accounts. Passed.

4:41 p.m. - Amendments 6 and 7 - clear up some language. Both pass.

4:35 p.m. - Amendment 5 - Clarifies that no additional tested will be needed for homeschool. Passed.

4:33 p.m. - Amendment 4 - provides an additional $500 for homeschool students with disabilities. Passed.

4:32 p.m. - Amendment 3 - clarifies language on providers, passed.

4:18 p.m. - Amendment 2 - Comptroller's requests - gives authority to perform any duty assigned to an educational provider. It also clarifies other duties of the Comptroller and tightens the rules on vendors and providers. Passes 20-11

4:17 p.m. - Suspension of regular order of business 20-11

4:14 p.m. - We're back around to Sen. West again. 

"Is the methodology in this bill suitable to make sure we can get the demographic breakdown that other states have?" - West

Creighton says they based that part on a framework submitted by West and believes it will allow for enough data collection without identifying students.

4:08 p.m. - A lighter moment in this debate: Sen. Adam Hinojosa, a newcomer to the chamber, wants to ask a question.

Patrick says freshman senators don't normally ask questions this early and teases Hinojosa on if he even knows what to ask.

Creighton asks if he's required to yield.

Hinojosa nails the request and a long pause later, Creighton yields for a question.

Seconds later, freshman Sen. Brent Hagenbuch rose to ask a question. Another long pause, but he also gets his question and sneaks in a follow-up.

3:54 p.m. - Bettancourt asks what lessons have been learned by studying other states with school choice.

"We've learned how the seas serve a very diverse population of students. We've learned how different states have established their own priority sets for students that are served within a scarcity of dollars. We've certainly learned about outcomes and how there's just such incredible positives across imperial studies." - Creighton

3:52 p.m. - We're back from a short break. Sen. Paul Bettencourt is the next senator to speak.

3:23 p.m. - "Under this bill could a public school, including a public charter be an approved education service provider and participate in all the activities that those would be eligible to provide?" - Sen. Angela Paxton

"A public school could allow that homeschool student to purchase access to that course from school as long as they weren't considered for daily attendance." - Creighton

3:03 p.m. - "I recalibrated our time based on 40 amendments and growing. Based on how much time we spent per amendment and how many senators speak. Set your clock for 4 a.m." - Patrick

2:47 p.m. - Lt. Gov. Dan Patrick said 10 other senators are still on the board to question Creighton. Suggested senators take notes and not repeat questions. Says the session could last until 10 p.m. "At you leisure, I have no place to go."

2:25 p.m. - "What I hear from my constituents is the fear that Senate Bill 2 or programs like this is going to destroy what we share with our classmates…do you think that's going to happen?" - Sen. Lois Kolkhorst (R-Brenham)

"Not only do I not think that's going to happen. There's just absolutely no data in the nation that shows that school choice programs are anything but good for public school outcomes." - Creighton

2:20 p.m. - Creighton on other states with savings accounts:

"This is one of the hottest things in America under both Democrat and Republican governors. It's changing daily." 

2:14 p.m. - "I can tell you who you're not fighting for. It's the other 5.2 million kids. That's who you're not fighting for." - Gutierrez

"We can't appropriate a $53 billion, one-year deployment of funds for all the students you support." - Creighton

2:10 p.m. - 

2:06 p.m. - Creighton on having the capacity in private schools:

"We don't know yet how many applications there will be in this program"

1:57 p.m. - "Rural Texas gets screwed on this deal, let's be real." - Gutierrez

"Not at all, it's actually a rural Texas bill" - Creighton

1:52 p.m. - "You're suggesting to us that these private schools do not have to comply with anything that is a prerequisite of the school safety commission that we dropped over $100 million to ensure that our kids are kept safe." - Sen. Roland Gutierrez (D- San Antonio)

"That's correct…but no, it's not in the ESA bill." - Creighton

1:45 p.m. - "To call this a voucher bill is a total misnomer?" - Sen. Bob Hall (R-Edgewood)

"Yes." - Creighton

1:25 p.m. - 

1:21 p.m. - 

1:18 p.m. - Creighton says the 80% lottery pool of the bill would allow the most income disadvantaged students the same chance as a family that sits at 500% of the poverty line. He's been calling the top end "A firefighter and a teacher with four kids"

1:14 p.m. - "We don't want to exclude the middle class…" - Creighton

1:13 p.m. - 

12:59 p.m. - "I'm trying to be more persuasive today instead of just that party-line vote" - Creighton to Sen. Royce West.

12:53 p.m. - Sen. Joan Huffman is questioning Creighton on the projections of cost of the bill. You can read that here.

12:48 p.m. - More Senate Democrats are voicing their opposition to the bill.

12:43 p.m. - "Creating a plan and launching a plan, we should have the best plan. And we should have a bold plan. And we should have the largest launch in American history and we will." - Creighton

12:41 p.m. - 

12:39 p.m. - "The most important voices in this debate are not ours. They belong to the people of Texas" - Creighton

12:36 p.m. - Sen. Brandon Creighton makes a motion on SB2. Says a similar bill passed four times in 2023. 

12:31 p.m. - Ahead of the floor debate on SB2, Sen. Cesar Blanco (D- El Paso) released a video on X saying the bill would take money away from public schools.

 

The backstory:

Senate Bill 2 became an emergency item following Gov. Greg Abbott's State of the State address Sunday.

Under the Texas Constitution, lawmakers are only allowed to file bills in the first 60 days of a session unless it is declared an emergency item by the governor.

Typically, bills filed at the beginning of the session aren't heard until March, when they go to committees that determine if they are heard by the full chamber. Bills in the full chamber are considered to have passed the first reading.

With his school choice plan, Abbott wants to establish an Education Savings Account program with universal eligibility for all Texas schoolchildren and appropriate $1 billion for the program.

He adds that he wants to ensure participation in the program is "entirely voluntary" for families and schools. He is also looking to increase public school choice opportunities by increasing funding for open-enrollment charter school facilities, expanding virtual education options, and improving access to inter- and intra-district transfer.

The Senate education committee held a public hearing last week on the bill.

Lawmakers in the upper chamber have been in agreement with Abbott that the bill would be a top priority during this legislative session.

Senate committee hearing

Lawmakers, experts and the public went back and forth for hours on Jan. 28 debating the benefits and weaknesses of the plan. 

What they're saying:

The two Democrats on the committee had concerns about getting the bill right and having public schools completely funded.

"I want us to make certain we listen to the people of Texas because America's eyes are on us with vouchers," Sen. Royce West said.

West also raised concerns about data transparency. An issue he was assured wouldn't be a problem as long as students' personal data was secure.

The bill's author, Sen. Brandon Creighton, was also pressed by the other Democrat on the committee, Sen. Jose Menendez.

"You know, I would be more than happy to support something as innovative as this is, after we support our public schools," Menendez said.

His comments were met with applause from the crowd.

"Help us with expectations if its full formulas and enrollment growth and a multiple X factor on what we've ever provided public schools as new money before, if those are the requirements because those are historic and that's not good enough," Creighton said. "Please get me the rest of the framework because we keep setting records here, and we just can't quite impress you enough."

During his State of the State address, Abbott said the current system doesn't work for every student.

"Government-mandated schools cannot meet the unique needs of every student. But Texas can provide families with choices to meet those needs. The majority of Texans support school choice. More than 30 states already have a form of school choice. We will continue to fully fund public schools and raise teacher pay, while also giving parents the choice they deserve," Abbott said Sunday.

Previous versions

The Texas Senate passed a version of a school choice bill during the last legislative session.

When the plan entered the Texas House during the last legislative session, many Republicans from rural districts sided with Democrats to vote down the issue, fearing the bill's passage would take money from public schools in their district.

Abbott made it a priority during the election season to find primary opponents for those representatives and all the Abbott-backed Republicans in the general election won their elections, seemingly giving enough votes to pass the bill.

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