Introduction
Education is a top priority for Texas families, but the debate over Education Savings Accounts (ESAs) and public school funding has left many parents wondering what’s best for their children. While ESAs promise school choice, they may not be practical or beneficial for everyone—especially in communities where private school options are limited or financially out of reach.
Education Savings Accounts (ESAs) have become a major topic in Texas, particularly with the introduction of Senate Bill 2 (SB2). Supporters argue that ESAs provide families with more educational choices, while opponents worry about the impact on public school funding and accessibility. As a parent, I recognize that ESAs may work for some families but may not be a practical solution for everyone, especially in areas like mine.
This article breaks down SB2, the financial implications of ESAs, and key considerations for parents.
Synopsis of Senate Bill 2 (SB2) and Its Financial Impact
SB2 proposes the establishment of an ESA program in Texas, funded by the General Revenue Fund. The estimated two-year net impact of this bill is negative impact of $1,006,958,766 through August 31, 2027. While the bill does not directly appropriate funds, it allows for a potential $1 billion allocation for ESAs in fiscal year 2027.
The ESA program, administered by the Texas Comptroller, would provide financial assistance for private school tuition, educational programs, and other education-related expenses. Eligibility would prioritize students from low-income households and students with disabilities, and the program would include compliance measures such as audits, fraud prevention, and annual reporting.
For participating students enrolled in a private school accredited by an organization recognized by the Texas Private School Accreditation Commission or TEA, the amount of the ESA would be $10,000 per student per year, or $11,500 for a student with a disability. The amount for other participants would be $2,000, or a greater amount by appropriation.
Projected Costs & Savings
- The cost of ESAs is expected to rise from $1 billion in 2027 to $4.6 billion by 2030.
- Public schools may see some financial savings due to students leaving for private schools, with estimated Foundation School Program (FSP) savings of $257.5 million in 2028, increasing to $805.5 million by 2030.
- The Texas Education Agency (TEA) and the Comptroller’s Office will face higher administrative costs, requiring new staff, cybersecurity measures, and enforcement personnel.
Potential Benefits and Challenges of ESAs
Will ESAs Hurt Public Education?
One of the biggest concerns surrounding ESAs is whether they will weaken public schools. According to Robert Enlow of EdChoice, research suggests that private school choice leads to better performance in public schools. Out of 29 studies on the impact of school choice, 26 found positive results for public schools.
The reasoning is that more school options can drive competition, potentially improving the overall quality of education. However, not all families have viable private school options, which raises concerns about equity.
Who Will Benefit from ESAs?
- Limited Private School Capacity – Availability of ESA funds does not guarantee admission into private schools, especially in areas where schools are full or nonexistent.
- Public School Funding Impact – If large numbers of students leave public schools, districts could see funding reductions, which may affect resources for remaining students.
- Potential Increase in Private School Tuition – In states like Arizona and Florida, private school tuition increased after ESA programs were introduced, as schools adjusted budgets to reflect actual costs. However, tuition hikes may not be widespread.
- Teacher Certification Differences – Private schools are not required to hire certified teachers, whereas some public schools (through “Districts of Innovation”) also follow this model.
Will ESAs Hurt Rural Schools?
Critics argue that ESAs could negatively impact rural public schools. However, data from Florida suggests that ESA programs have led to more rural schools opening, providing additional options for families.
The question remains: How will Texas ensure rural students have meaningful choices?
Key Questions to Ask Legislators
As Texas considers ESAs, parents should stay informed and ask important questions to ensure public education is not neglected:
Equity & Accessibility
- How will students in rural or underserved areas benefit if private school options are unavailable?
- Will there be incentives for private schools to expand capacity in high-need areas?
- How will students with disabilities be accommodated in private schools that lack specialized programs?
Public School Impact & Funding
- How will public schools be financially supported to prevent resource loss when students leave for ESAs?
- Will public schools receive additional state funding to offset potential budget reductions?
- If ESA funds come from the General Revenue Fund, how will the state ensure public education remains fully funded?
Accountability & Transparency
- How will the state ensure ESA funds are used appropriately and not mismanaged?
- Will private schools receiving ESA funds be required to meet the same academic and financial accountability standards as public schools?
- What protections exist for families if a private school suddenly closes or fails to deliver promised services?
Final Thoughts
SB2 presents both opportunities and risks for Texas students and families. While it could expand educational choices, it also raises concerns about school availability, funding shifts, and administrative costs.
For many parents, including myself, private school is neither financially feasible nor logistically practical. Instead of diverting funds, the focus should be on strengthening public education so that all students—regardless of where they live—have access to quality schools.
My three children benefit from an excellent ISD, but legislative funding should be increased to address rising costs and inflation. The ongoing criticism of public schools is unproductive. I don’t have $30,000 per child to spare, and even if I qualified for an ESA, it wouldn’t cover the additional fees. Beyond finances, homeschooling or alternative education models simply don’t fit our family’s schedule. Daily homework, some extracurricular activities, and quarterly concerts provide a balanced experience that works for us. We don’t have the luxury of time or resources to completely overhaul our children’s education.
It’s time for Texas lawmakers to prioritize public school funding in the upcoming legislative session. Frankly, this should have been one of the first bills passed to address the financial challenges that have existed since 2019. There are billions of dollars that have yet to be released, leaving schools struggling while public education continues to be used as a political football. The ones who truly suffer in this debate are the students.
Meanwhile, there is no statewide survey or data showing whether private school education is delivering the outcomes parents are seeking—whether that’s getting a leg up for college admissions, preparing for the workforce, or fostering civic engagement. Until we have clear evidence of how students are benefiting across all types of schools, policymakers should focus on funding and improving the public education system that serves the vast majority of Texas children.
Parents should stay informed, ask tough questions, and demand that their tax dollars be used in a way that benefits the greatest number of students. Let me know your thoughts in the comments below or send me an email—I’d love to hear from you!