Published Mar 05, 2025 by Jordan Overturf
While the House Public Education Committee discusses its comprehensive school finance reform, the Senate addresses teacher pay incentives as a stand-alone measure. Senate Bill 26 (SB 26) was swiftly voted out of the Senate on February 26 and now awaits consideration by the House.
The upper chamber's decision to separate its education funding priorities follows a similar approach from the 2023 legislative session. As the House and Senate exchanged proposals, teacher incentives and school finance measures were frequently adjusted during negotiations. Ultimately, no proposals were passed, leaving about $5 billion in school funding unallocated in state coffers for two years.
Despite the different legislative approaches, SB 26's provisions are similar to the teacher incentive proposals in House Bill 2. Below is a topline analysis of the proposed changes in SB 26.
Teacher Designation System Changes
Changes to Teacher Incentive Allotments
Increases funding for teacher designation levels under the incentive program:
Adds a 10% funding boost for schools designated as Enhanced Teacher Incentive Allotment Schools.
New Teacher Retention Allotment
Provides additional salary incentives for teachers based on years of experience.
Small districts (≤5,000 students)
Larger districts (>5,000 students):
Ensures districts use the funding for salary increases in the 2025-26 school year and maintain them in subsequent years.
Grant Program for Local Teacher Designation Systems
Teacher Liability Insurance & Rights Protection
Requires the state education agency to contract with a third party to provide:
Changes to Salary Deductions for Teacher Organizations
Modifies rules for payroll deductions for professional organization dues:
Pre-Kindergarten Eligibility Expansion
Expands pre-K eligibility to children of public school classroom teachers employed within the same school district offering pre-K programs.
Adjustments to State Funding for School Districts
Provides additional state aid adjustments to help districts maintain financial stability when transitioning under new funding rules.
The House could adopt additional reforms from SB 26 under its House Bill 2, the omnibus school finance reform measure. Click here to review the analysis of HB 2.
For now, SB 26 remains eligible for referral to the House Public Education Committee. These differences in policy approach are an early signal that there will be efforts in each chamber to promote the preferred bill on any given issue. Those negotiations may be elevated to the Big 3 (House Speaker Dustin Burrows, Lt. Gov. Dan Patrick, and Governor Greg Abbott) for a final compromise.
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