Talking Texas Vouchers - Funding and Statistics - S1 - E2

Title: Funding and Statistics

Date Recorded: February 5, 2025

Host: Wade Erickson

Overview

This episode focuses on the recent passage of SB2 in the Texas Senate, the allocation of funds for Education Savings Accounts (ESAs), and the statistical impact of the proposed voucher program. The discussion covers funding distribution, eligibility criteria, and the types of schools that may receive ESA funding.

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Key Points Discussed

1. Legislative Update on Texas Education Savings Accounts (ESAs)

• SB2 Passed the Texas Senate on February 5, 2025, but still requires approval from the Texas House.

• The House version of the bill is expected to have some differences, which will be reconciled in committee before final passage.

• SB1 (Budget Bill) includes funding for ESAs and broader education allocations.

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2. Funding Allocations & Expected Impact

• $1 billion has been allocated for ESAs in the 2026-2027 school year.

• Texas public school budget approaching $100 billion overall.

• Expected ESA allocation per student:

o $10,000 per student (standard)

o $11,500 per student with disabilities

o $2,000 for homeschool students

• Estimated 95,000 - 100,000 students will receive ESA funds in the first year (~1.8% of public school students).

• ESA eligibility is restricted to students enrolled in public or charter schools in the previous year.

o Current private school students will not qualify unless they meet specific conditions.

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3. Teacher Pay Raises & Additional Public School Funding

• Teacher raises contingent on ESA passage:

o $4.85 billion set aside for teacher pay increases.

o Brings total public school budget close to $100 billion.

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4. Interesting Amendment: Exclusion of Online Private Schools

• One of the most interesting amendments in SB2 excludes online private schools from receiving ESA funds.

• Only brick-and-mortar private schools are eligible.

• The rationale behind this amendment is unclear but could be to prevent virtual school fraud or misuse of funds.

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5. Breakdown of Texas Student Enrollment (2023-2024)

• Public schools: 5.5 million students (~78%)

• Charter schools: 488,000 (~8%)

• Private schools: 347,000 (~6%)

• Homeschooling: 500,000 - 600,000 (~8-10%)

Overall Shift Expected Due to ESA Program:

• Public + Charter school enrollment expected to drop from 86% to 84%.

• ESA funding will shift students to private schools and homeschooling.

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6. Eligibility & Funding Distribution Across School Types

School Type ESA Eligible? Notes

Public Schools No - Already publicly funded.

Charter Schools Nol- A;ready Operates with public funds.

Accredited Private Schools - Yes Primary target of ESAs.

Private Online Schools No - Specifically excluded by SB2 amendment.

Homeschooling Yes - $2,000 per student (up to $2,500 for special needs).

Micro Schools Maybe - Could qualify under homeschooling/tutoring.

Online Learning Centers - Maybe If classified as tutoring, could receive funds.

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Final Thoughts

• ESA vouchers will impact only about 2% of students per year, which is less than the Texas dropout rate (~6.3% over four years).

• Homeschooling, micro-schools, and private schools are expected to see an increase in enrollment.

• Excluding online private schools from ESA eligibility remains controversial.

• Future episodes will analyze House bill drafts and amendments in more