Explaining SB2, the proposal for Texas Education Savings Accounts

LUBBOCK, Texas (KCBD) – Education savings accounts are a top priority for Governor Abbott and the Texas Legislature this session.

Born from the concept of “school choice,” lawmakers are hoping to give Texas families the opportunity to remove their children from public school and send them to private school.

“The issue I hear mostly from parents is that they are angry at a ‘woke’ agenda being pushed on their [public school] kids,” Governor Abbott said during a rally at a private school last week.

The concept of “school choice” isn’t new. America First Policy Institute reports at least 32 states across the country have some form of voucher system. Those include vouchers, tax-credit scholarship programs, and education savings accounts.

Vouchers are simply taxpayer dollars made available for families to use for private school tuition. Tax-credit scholarship programs involve businesses or individuals donating to a scholarship fund in exchange for tax credits.

Education savings accounts, which Texas lawmakers hope to implement, are state-supported bank accounts that parents can access for things like private school tuition and transportation.

SB2 requires the Texas Comptroller’s Office to set those accounts up and comb through applications. It also proposes accountability measures. The bill requires the Comptroller’s Office to contract with a company that will regularly audit the accounts.

Senate Bill 2 proposes $10,000 be made available per student, per year. That number increases to $11,500 for students with disabilities and could also provide $2,000 for homeschool students.

Any child already enrolled in public school, from pre-K to high school seniors, is eligible for a savings account. Any child already enrolled in private school can also apply.

It is important to keep in mind; however, that private schools are not required to accept a student, even if they can pay tuition. That’s one of the major concerns for lawmakers and parents who are against SB2.

“You’re telling us this bill would allow hard-working Texans’ taxpaying dollars the ability to be presented to a private institution that could deny that student?” State Senator Jose Menendez, of San Antonio, asked of the bill’s author. “The Texas constitution requires equal educational opportunities. It has a mandate for us to do that. How do you reconcile the two?”

Both chambers of the legislature agreed to initially set aside $1 billion for this program. There are more than 5.5 million students enrolled in public schools across Texas, according to the Texas Education Agency. That means the state’s education savings accounts will only allow 0.018% of the student population to switch to private school.

That percentage also has lawmakers concerned, and questioning who would receive the funds at the end of the day.

“In terms of our public school system, it’s predominately minority, is it not? And private schools are predominately white? So, we are about to fund a component of the state’s education system that is currently, let’s say, 75 percent white,” State Senator Royce West, of Dallas, asked on the Senate floor.

If demand surpasses state funding, only children with disabilities or those who fall 500% under the federal poverty line will be considered for the accounts. In 2024, the federal poverty line for a family of four was $31,200. Five times that amount would be $156,000 a year.

The state conducted a fiscal analysis of SB2 last month. That report estimates Texas will need to set aside $4 billion for the savings accounts by 2030. Public schools rely on attendance for state funding, and the report estimates 98,000 students will leave public schools for private schools by that same year.

It’s not yet clear when the House will take SB2 up. Committees were just created on Thursday. That means the bill will now have to pass through the House’s Public Education Committee before it can be brought to the floor for a vote.

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