SB 149

relating to special education funding under the Foundation School
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 8.051(d), Education Code, is amended to
(d)  Each regional education service center shall maintain
core services for purchase by school districts and campuses.  The
(1)  training and assistance in:
(A)  teaching each subject area assessed under
(B)  providing instruction in personal financial
literacy as required under Section 28.0021;
(2)  training and assistance in providing each program
that qualifies for a funding allotment under Section 48.102,
48.1021, 48.103, 48.104, 48.105, or 48.109;
(3)  assistance specifically designed for a school
district or campus assigned an unacceptable performance rating
(4)  training and assistance to teachers,
administrators, members of district boards of trustees, and members
of site-based decision-making committees;
(5)  assistance specifically designed for a school
district that is considered out of compliance with state or federal
special education requirements, based on the agency's most recent
compliance review of the district's special education programs; and
(6)  assistance in complying with state laws and rules.
SECTION 2.  Section 29.002, Education Code, is amended to
Sec. 29.002.  DEFINITION.  In this subchapter, "special
(1)  special education instruction, which may be
provided by professional and supported by paraprofessional
personnel in a general education setting [the regular classroom] or
in a special education setting, as defined by commissioner rule [an
instructional arrangement described by Section 48.102]; and
(2)  related services, which are developmental,
corrective, supportive, or evaluative services, not instructional
in nature, that may be required for the student to benefit from
special education instruction and for implementation of a student's
individualized education program.
SECTION 3.  Section 29.014(d), Education Code, is amended to
(d)  The basic allotment for a student enrolled in a district
to which this section applies is adjusted by the tier of intensity
of service defined in accordance with [weight for a homebound
student under] Section 48.102 and designated by commissioner rule
for use under this section [48.102(a)].
SECTION 4.  Section 29.022(u)(3), Education Code, is amended
(3)  "Self-contained classroom" does not include a
classroom that is a resource room as defined by commissioner rule
[instructional arrangement under Section 48.102].
SECTION 5.  Section 29.316(c), Education Code, is amended to
(c)  Not later than August 31 of each year, the agency, the
division, and the center jointly shall prepare and post on the
agency's, the division's, and the center's respective Internet
websites a report on the language acquisition of children eight
years of age or younger who are deaf or hard of hearing.  The report
(A)  existing data reported in compliance with
federal law regarding children with disabilities; and
(B)  information relating to the language
acquisition of children who are deaf or hard of hearing and also
(A)  the educational setting [instructional
arrangement] used with the child, as defined by commissioner rule
[described by Section 48.102], including the time the child spends
on average in a general education setting [mainstream instructional
(B)  the specific language acquisition services
provided to the child, including:
(i)  the time spent providing those
(ii)  a description of any hearing
amplification used in the delivery of those services, including:
(a)  the type of hearing amplification
(b)  the period of time in which the
child has had access to the hearing amplification; and
(c)  the average amount of time the
child uses the hearing amplification each day;
(C)  the tools or assessments used to assess the
child's language acquisition and the results obtained;
(D)  the preferred unique communication mode used
(E)  the child's age, race, and gender, the age at
which the child was identified as being deaf or hard of hearing, and
any other relevant demographic information the commissioner
determines to likely be correlated with or have an impact on the
(3)  compare progress in English literacy made by
children who are deaf or hard of hearing to progress in that subject
made by children of the same age who are not deaf or hard of hearing,
(4)  be redacted as necessary to comply with state and
federal law regarding the confidentiality of student medical or
SECTION 6.  Subchapter A, Chapter 48, Education Code, is
amended by adding Section 48.0055 to read as follows:
Sec. 48.0055.  ENROLLMENT-BASED FUNDING.  The commissioner
by rule shall establish the method for determining average
enrollment for purposes of funding provided based on average
enrollment under Chapter 46 and this chapter.
SECTION 7.  Section 48.051(a), Education Code, is amended to
(a)  For each student in average daily attendance, not
including the time students spend each day in career and technology
education programs or in special education programs receiving
special education services in a setting [an instructional
arrangement] other than a general education setting [mainstream or
career and technology education programs], for which an additional
allotment is made under Subchapter C, a school district is entitled
to an allotment equal to the lesser of $6,160 or the amount that
results from the following formula:
"A" is the allotment to which a district is entitled;
"TR" is the district's tier one maintenance and operations
tax rate, as provided by Section 45.0032; and
"MCR" is the district's maximum compressed tax rate, as
determined under Section 48.2551.
SECTION 8.  Section 48.102, Education Code, is amended to
Sec. 48.102.  SPECIAL EDUCATION.  (a)  For each student in
average enrollment [daily attendance] in a special education
program under Subchapter A, Chapter 29, [in a mainstream
instructional arrangement,] a school district is entitled to an
annual allotment equal to the basic allotment, or, if applicable,
the sum of the basic allotment and the allotment under Section
48.101 to which the district is entitled, multiplied by the weight
assigned under Subsection (c) to the highest tier of intensity of
service for which the student qualifies [1.15].
(a-1)  Notwithstanding Subsection (a), for the 2026-2027 and
2027-2028 school years, the amount of an allotment under this
section shall be determined in accordance with Section 48.1022.
This subsection expires September 1, 2028.  [For each full-time
equivalent student in average daily attendance in a special
education program under Subchapter A, Chapter 29, in an
instructional arrangement other than a mainstream instructional
arrangement, a district is entitled to an annual allotment equal to
the basic allotment, or, if applicable, the sum of the basic
allotment and the allotment under Section 48.101 to which the
district is entitled, multiplied by a weight determined according
to instructional arrangement as follows:
[Self-contained, mild and moderate, regular campus  3.0
[Self-contained, severe, regular campus  3.0
[Vocational adjustment class  2.3]
(b)  The commissioner by rule shall define seven tiers of
intensity of service for use in determining funding under this
section.  The commissioner must include one tier specifically
addressing students receiving special education services in
residential placement [A special instructional arrangement for
students with disabilities residing in care and treatment
facilities, other than state schools, whose parents or guardians do
not reside in the district providing education services shall be
established by commissioner rule.  The funding weight for this
arrangement shall be 4.0 for those students who receive their
education service on a local school district campus.  A special
instructional arrangement for students with disabilities residing
in state schools shall be established by commissioner rule with a
(c)  The weights assigned to the seven tiers of intensity of
service defined under Subsection (b) are, from least to most
intense, 0.6, 0.85, 1, 1.45, 1.75, 2, and 2, or other weights
provided by appropriation. [For funding purposes, the number of
contact hours credited per day for each student in the off home
campus instructional arrangement may not exceed the contact hours
credited per day for the multidistrict class instructional
arrangement in the 1992-1993 school year.]
(d)  [For funding purposes the contact hours credited per day
for each student in the resource room; self-contained, mild and
moderate; and self-contained, severe, instructional arrangements
may not exceed the average of the statewide total contact hours
credited per day for those three instructional arrangements in the
[(e)  The commissioner by rule shall prescribe the
qualifications an instructional arrangement must meet in order to
be funded as a particular instructional arrangement under this
section.  In prescribing the qualifications that a mainstream
instructional arrangement must meet, the commissioner shall
establish requirements that students with disabilities and their
teachers receive the direct, indirect, and support services that
are necessary to enrich the regular classroom and enable student
[(f)  In this section, "full-time equivalent student" means
30 hours of contact a week between a special education student and
special education program personnel.
[(g)]  The commissioner shall adopt rules and procedures
governing contracts for residential and day program placement of
[special education] students receiving special education services.
(e)  [The legislature shall provide by appropriation for the
state's share of the costs of those placements.
[(h)]  At least 55 percent of the funds allocated under this
section must be used in the special education program under
(f) [(i)]  The agency shall ensure [encourage] the placement
of students in special education programs, including students in
residential placement [instructional arrangements], in the least
restrictive environment appropriate for their educational needs.
(g) [(j)]  A school district that provides an extended year
program required by federal law for special education students who
may regress is entitled to receive funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the basic allotment, or, if applicable, the sum of the basic
allotment and the allotment under Section 48.101 to which the
district is entitled for each [full-time equivalent] student in
average enrollment [daily attendance], multiplied by the amount
designated for the highest tier of intensity of service for which
the student qualifies [student's instructional arrangement] under
this section, for each day the program is provided divided by the
number of days in the minimum school year.  The total amount of
state funding for extended year services under this section may not
exceed $20 [$10] million per year.  A school district may use funds
received under this section only in providing an extended year
(h) [(k)]  From the total amount of funds appropriated for
special education under this section, the commissioner shall
withhold an amount specified in the General Appropriations Act, and
distribute that amount to school districts for programs under
Section 29.014.  The program established under that section is
required only in school districts in which the program is financed
by funds distributed under this subsection and any other funds
available for the program.  After deducting the amount withheld
under this subsection from the total amount appropriated for
special education, the commissioner shall reduce each district's
allotment proportionately and shall allocate funds to each district
(i)  Not later than December 1 of each even-numbered year,
the commissioner shall submit to the Legislative Budget Board, for
purposes of the allotment under this section, proposed weights for
the tiers of intensity of service for the next state fiscal
biennium.  The commissioner must include information regarding the
selection of the proposed weights.  In developing the proposed
weights, the commissioner shall consult with school district
superintendents and chief financial officers, the continuing
advisory committee appointed under Section 29.006, and other
SECTION 9.  Subchapter C, Chapter 48, Education Code, is
amended by adding Sections 48.1021, 48.1022, and 48.1023 to read as
Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.
(a)  For each six-week period in which a student in a special
education program under Subchapter A, Chapter 29, receives eligible
special education services, a school district is entitled to an
allotment in the amount assigned under Subsection (c) to the
service group for which the student is eligible.
(a-1)  Notwithstanding Subsection (a), for the 2026-2027 and
2027-2028 school years, the amount of an allotment under this
section shall be determined in accordance with Section 48.1022.
This subsection expires September 1, 2028.
(b)  The commissioner by rule shall establish four service
groups for use in determining funding under this section.  In
establishing the groups, the commissioner must consider:
(1)  the level of services, equipment, and technology
required to meet the needs of students receiving special education
(2)  services that meet the needs of students receiving
special education services and were previously eligible for
reimbursement through the school health and related services
(c)  The amounts assigned to the four service groups
established under Subsection (b) are, from lowest to highest level
of service, $100, $350, $650, and $1,000, or other amounts provided
(d)  A school district is entitled to receive an allotment
under this section for each service group for which a student is
(e)  A school district is entitled to the full amount of an
allotment under this section for a student receiving eligible
special education services during any part of a six-week period.
(f)  At least 55 percent of the funds allocated under this
section must be used for a special education program under
(g)  Not later than December 1 of each even-numbered year,
the commissioner shall submit to the Legislative Budget Board, for
purposes of the allotment under this section, proposed amounts of
funding for the service groups for the next state fiscal biennium.
The commissioner must include information regarding the selection
of the proposed amounts.  In developing the proposed amounts, the
commissioner shall consult with school district superintendents
and chief financial officers, the continuing advisory committee
appointed under Section 29.006, and other relevant stakeholders.
Sec. 48.1022.  SPECIAL EDUCATION TRANSITION FUNDING.  (a)
For the 2026-2027 and 2027-2028 school years, the commissioner may
adjust weights or amounts provided under Section 48.102 or 48.1021
as necessary to ensure compliance with requirements regarding
maintenance of state financial support under 20 U.S.C. Section
1412(a)(18) and maintenance of local financial support under
(b)  For the 2026-2027 and 2027-2028 school years, the
commissioner shall determine the formulas through which school
districts receive funding under Sections 48.102 and 48.1021.  In
determining the formulas, the commissioner may combine the methods
of funding under those sections with the method of funding provided
by Section 48.102, as it existed on January 1, 2025.
(c)  For the 2028-2029 school year, the commissioner may
adjust the weights or amounts set for purposes of Section 48.102 or
48.1021.  Before making an adjustment under this subsection, the
(1)  submit the proposed adjustment to the secretary of
state for publication in the Texas Register and must receive notice
(2)  notify in writing and must receive approval from
(d)  Notwithstanding any other provision of this section,
the sum of funding provided under Sections 48.102 and 48.1021 for
the 2026-2027 or for the 2027-2028 school year as adjusted under
this section may not exceed the sum of:
(1)  funding that would have been provided under
Section 48.102, as it existed on January 1, 2025; and
(2)  the amount set by the legislature in the General
(e)  Each school district and open-enrollment charter school
shall report to the agency information necessary to implement this
(f)  The agency shall provide technical assistance to school
districts and open-enrollment charter schools to ensure a
successful transition in funding formulas for special education.
(g)  This section expires September 1, 2030.
Sec. 48.1023.  SPECIAL EDUCATION TRANSITION HOLD HARMLESS
FUNDING.  (a)  For the 2026-2027, 2027-2028, 2028-2029, and
2029-2030 school years, each school district is entitled to receive
funding under Sections 48.102 and 48.1021 in a total amount at least
equal to the amount of funding the district was entitled to receive
under Section 48.102 for the 2025-2026 school year.
(b)  The commissioner shall adjust a school district's
entitlement under Sections 48.102 and 48.1021 as necessary to
(c)  This section expires September 1, 2030.
SECTION 10.  Sections 48.103(a) and (c), Education Code, are
(a)  Subject to Subsection (b), for each student that a
school district serves who has been identified as having dyslexia
or a related disorder, the district is entitled to an annual
allotment equal to the basic allotment multiplied by 0.5 [0.1] or a
greater amount provided by appropriation.
(c)  A school district may receive funding for a student
under each provision of this section, [and] Section 48.102, and
Section 48.1021 for which [if] the student qualifies [satisfies the
requirements of both sections].
SECTION 11.  This Act takes effect September 1, 2026.