Leaders of the Texas Legislature, including Texas State Senator Jane Nelson, R-Flower Mound, Thursday announced an agreement on House Bill 3, a landmark reform plan which provides tax relief, a salary increase for teachers, and additional state aid for Texas school districts.

"It is historic to see legislators come together to address school finance reform without a court order. Under this plan, homeowners will receive much-needed property tax relief. Teachers will receive a well-earned pay raise, and schools will receive additional state aid," Nelson, a conferee on HB 3, said. "By incentivizing third-grade reading, promoting career-readiness and reducing high-stakes testing, we are making significant reforms that will lead to better outcomes for our students."


Specifically, HB 3 provides:

  • Over $5 billion to increase the state's share of education funding to provide property tax relief;
  • $4.5 billion for educational reform in the classroom including an increased Basic Allotment per student and higher-quality reading standards;
  • Modernized school finance formulas to reduce recapture by 47 percent; and
  • $2 billion to give teachers a well-deserved pay raise, increase the minimum teacher salary schedule, and prioritize veteran educators.


HB 3 now goes to both chambers for a final up-or-down vote before it goes to the Governor's desk. Along with HB 3, the Legislature is also committed to Teacher Retirement System (TRS) reforms through Senate Bill 12, which will make the pension fund actuarially sound and provide up to a $2,000 supplemental 13th check to retirees.

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