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Bill

HB 3380

Relating to the basic allotment and guaranteed yield under the Foundation School Program, including an adjustment in those amounts to reflect inflation.

89th Legislature (2025) Introduced by Jon Rosenthal

HB 3380 increases Texas school funding's basic allotment and guaranteed yield amounts to adjust for inflation, boosting per-student resources statewide.

Referred to Public Education
#education--primary&secondary--finance(i0250) #foundationschoolprogram(s0541)
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Bill Summary · HB 3380

Legislative bill overview

HB 3380 proposes adjusting the basic allotment and guaranteed yield funding amounts under Texas's Foundation School Program to account for inflation. The basic allotment is the per-student funding amount that forms the foundation of school finance, while guaranteed yield ensures districts receive minimum revenue levels. This bill would increase these amounts to reflect rising costs since the last adjustment.

Why is this important

School funding directly affects classroom resources, teacher salaries, and educational quality across Texas districts. Inflation erodes purchasing power, meaning static funding amounts buy fewer supplies, services, and competitive salaries each year. Adjusting for inflation helps maintain consistent educational services and can address teacher recruitment and retention challenges in a competitive labor market.

Potential points of contention

  • Cost and state budget impact: Inflation adjustments increase overall state education spending, which requires identifying funding sources or reducing other budget priorities during tight fiscal periods
  • Equity concerns: The adjustment mechanism may not address disparities between wealthy and poor districts, as percentage increases preserve existing funding gaps
  • Amount of adjustment: Disagreement over whether the inflation adjustment should fully match documented inflation rates, use a formula, or be discretionary

Compiled from official sources — confirm details with the bill’s official record.

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