The Texas Legislature is advancing a proposal to allocate $1 billion towards education savings accounts (ESAs), which would enable parents to utilize state funds for various educational expenses including private school tuition, transportation, therapy, and more.

This concept, historically known as school vouchers, has seen limited success in Texas over the years. However, following the election of several Republican lawmakers who support ESAs, discussions have evolved from whether they will be implemented to how such a program will be structured.

Eligibility for Education Savings Accounts

In February, the Texas Senate approved a bill proposing an ESA program that would offer a uniform amount of $10,000 to each eligible student. Based on this funding, the program could potentially assist around 100,000 students.

Should demand exceed available funds, the proposal mandates that 80% of resources be allocated to low-income families, defined as those earning $160,000 or below annually. Conversely, the House’s version incorporates additional provisions aimed at prioritizing low-income households and special needs students.

• First priority: Special needs students from families earning less than $160,000.
• Next: Families with annual incomes below $62,400.
• Then: Families earning between $62,400 and $156,000.
• Last: Families earning $156,000 or more.

Funding Implications for Public Schools

Public education advocates express concerns that ESAs will detrimentally affect funding for public schools, which rely on enrollment for state funding. The House proposal attempts to alleviate this by indicating that students approved for ESAs would receive 85% of the per-student funding from their zoned school district.

The estimated average funding per student in Texas is about $12,815, meaning ESA recipients might have access to approximately $10,200 for education-related expenses. However, a significant departure of students to private institutions may lead to a decrease in funding for public schools, requiring lawmakers to consider increasing public school funding alongside ESA implementation.

Potential Financial Support for Students

Under the Senate’s proposal, each student would receive $10,000 annually. The House’s structure is more complex; for instance, a student in San Antonio ISD may end up with about $1,500 less than the state’s average ESA amount. Specific allotments depend on local district funding, which is influenced by various factors, including property tax rates and student demographics.

The Texas Education Agency has indicated that funding adjusts according to student attendance, further complicating potential funding for the ESA.

Cost of Private Education in San Antonio

Should ESAs be ratified, private schools in San Antonio may see a surge in enrollment from families previously unable to afford such options. However, the proposed ESA amounts may not suffice to cover full tuition at many private institutions in the area:

• San Antonio Christian School: Tuition ranges from $10,250 to $17,250 annually.
• Catholic Central High School: Charges about $14,330 per year.
• St. John Berchmans Catholic School: Offers tuition of $5,000 yearly.
• Town East Christian School: Annual tuition is approximately $4,000.

It is important to note that private schools are not mandated to adhere to the same standards and regulations as public institutions, which raises concerns regarding equity and accessibility for all students.

Special Needs and Education Savings Accounts

Under the House proposal, families with special needs students could qualify for funding up to 100% of the average student allotment in their district, capped at $30,000. In contrast, the Senate suggests a maximum of $11,500 for the same demographic.

Currently, only a limited number of private schools in San Antonio offer special education services, highlighting the potential mismatch between ESA funding and available educational options.

The Future of Education Savings Accounts in Texas

Governor Greg Abbott has emphasized the importance of advancing a school voucher program during this legislative session, having made it a pivotal aspect of enhancing public funding in previous sessions. Following a series of unsuccessful attempts at legislation, the dynamics appear more promising this time due to recent electoral outcomes.

If the proposed ESA program gains traction in both legislative chambers and receives the governor’s approval, implementation could begin in the 2026-2027 school year, allowing time for regulatory development.