Texas: Wealthier than many, yet school finance stalls.

Franetic / Money / Texas: Wealthier than many, yet school finance stalls.
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FOR IMMEDIATE RELEASE

Contact: Nicole Hill, [email protected]

As uncertainties in the economy rise, Texas must prioritize education funding and fulfill promises to students—before it’s too late.

Texas: A Rich State with a Critical Challenge

Austin, Texas – Today, the Texas AFT urges the Texas Senate to advance House Bill 2 for a public hearing and promptly secure new funding for public schools. Time is ticking, and lawmakers must act before the 2026-27 state budget negotiations conclude. The urgency is palpable!

A Surplus Like No Other

Texas stands at a financial crossroads with a staggering **$23.8 billion budget surplus**, while the **Economic Stabilization Fund** boasts an impressive **$23.4 billion**. This remarkable wealth positions the state to make significant investments in education, yet lawmakers continue to stall. **House Bill 2** isn’t a complete fix for the persistent school finance issues that have plagued Texas since 2019, but it promises essential increases, especially for **pre-Kindergarten** and **special education** programs. Without action, significant harm is on the horizon.

Economic Clouds on the Horizon

Recent GDP figures suggest the United States is on the brink of a recession—an ominous sign! For Texas, declining crude oil prices, which recently dipped **below $60 a barrel**, make the situation even more precarious. Although there was a slight rebound following a temporary pause in U.S.-China tariffs, industry experts warn that prices may decline due to **slowing demand** and **rising supply**. Texas cannot afford to wait; the time to invest in our public schools is now, while a substantial budget surplus and a **Rainy Day Fund** exist.

Time Is of the Essence

With only **21 days left** in the regular session of 2025, the clock is ticking. Public school districts are currently navigating stormy waters, operating under deficit budgets because lawmakers failed to deliver funding as promised during the last session. According to **Zeph Capo**, president of Texas AFT:

“Public school districts across the state are operating on deficit budgets after lawmakers failed to deliver on their promise for funding last session. Governor Abbott and his voucher gamesmanship are to blame, and they’ll have to own the consequences: mass layoffs, school closures, and steep budget cuts in districts big and small. Whether lawmakers want to add to the wreckage is up to them.”

This is a critical moment for Texas education. If lawmakers choose to gamble with public education funding now, they risk laying the groundwork for a devastating fallout for students and educators alike.

Protecting Future Generations

In these precarious times, it is imperative that Texas lawmakers heed the warning and take decisive actions to shelter our schools from potential disaster. While we still have the resources, let’s commit to securing a brighter future for our students.

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The Texas American Federation of Teachers represents 66,000 teachers, paraprofessionals, support personnel, and higher-education employees across the state. Texas AFT is affiliated with the 1.8-million-member American Federation of Teachers and the AFL-CIO.

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