What is House Bill 3?
House Bill (HB 3) 3, a sweeping and historic school finance bill was passed by the 86th Texas Legislature in 2019 and signed by Gov. Greg Abbott. The bill provides more money for Texas classrooms, increases teacher compensation, reduces recapture and cuts local property taxes for Texas taxpayers. HB 3 is one of the most transformative Texas education bills in recent history. The bill is the result of months of work beginning with the Texas Commission on Public School Finance and culminating in bipartisan work between the members of the Texas House and Senate.
Information on how the changes from House Bill 3 to the Texas education code and other Texas statutes will affect Texas public schools is listed below. As more information becomes available it will be shared with Texas school systems and posted here.
Texas Commission on Public School Finance Final Report (PDF)
House Bill 3: Bill Text (PDF)
House Bill 3: Fiscal Note (PDF)
HB 3 High-Level Overview
The Texas Education Agency will be releasing resources that explain House Bill 3 at a very high level so that the public at-large can better understand the different components of the law and what guidance they can expect from the agency over the next few weeks and months. Make sure to check this section for new resources as they are released.
HB 3 Overview (PDF)
HB 3 Bill Summary (PDF)
HB 3 2-Pager (PDF)
For guidance on HB 3 budget implications, please refer to the below runs from the Legislative Budget Board (LBB) for M&O revenue comparisons for schools districts between current law and the HB 3 Conference Committee Report. Also included is a State Aid excel template for districts that will be coming soon. For purposes of calculating the 30 percent compensation increase requirement, it is important to note that the “change in total M&O revenue” amounts in the files below should not be used as a proxy for the gain amount, as these files compare FY2020 old law vs. current law, instead of comparing current law FY2020 to old law FY2019.
Legislative Budget Board (LBB) Runs FY 20 (PDF)
Legislative Budget Board (LBB) Runs FY 21 (PDF)
TEA State Aid Excel Tracker (Excel)
TEA Charter State Aid Excel Tool (Excel)
HB 3 in 30 Video Series
To support communications on House Bill 3, TEA staff will be releasing a video web series that seeks to provide more information on HB 3. These presentations will be posted every Thursday.
Budget Planning for Teacher Compensation (Video)
Tax Rate Changes (Video) State Compensatory Education (SCE) Program (Video) Prekindergarten (Video)
HB 3 Topics of Interest
Due to its sweeping and historic nature, House Bill 3 touches on many different aspects of education in Texas and impacts everything from recapture to Pre-K funding to Special Education and transportation. Because of the sheer number of topics to cover and provide guidance on, the agency will be releasing information week by week over the summer starting with a schedule of topics and a list of frequently asked questions. Please make sure to refer back to this section as updates and additional information are posted.
HB 3 Guidance and Correspondence
Schedule of Topics
Frequently Asked Questions
Teacher Retirement System (TRS) Information - HB 3 and Creditable Compensation
Master Teacher Update