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Texas Must Lead on School Choice: HB 3 Is a Good Start, But More Is Needed

3/11/2025

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Originally posted to X. 

Today, the Texas House Committee on Public Education convenes to deliberate on House Bill 3 (HB 3), a pivotal piece of legislation to reform our state's education system by introducing the first school choice program with Education Savings Accounts (ESAs).

This initiative seeks to empower parents with the autonomy to choose the best educational setting for their children, whether public, private, charter, homeschooling, or another. While HB 3 represents a commendable step toward educational freedom, it falls short of delivering the comprehensive reform Texans urgently need.

Texas allocates nearly $95 billion annually to K-12 education. Since 2013, spending per student of more than $15,000 has increased 48%, outpacing the 35% inflation rate over the same period. Despite this substantial taxpayer spending, student outcomes have declined, with eighth-grade math proficiency dropping by 40%.

This paradox of increased funding and deteriorating performance underscores a fundamental flaw in our education system: a bureaucratic monopoly prioritizing administrative expansion over classroom excellence.
The existing funding model is riddled with inefficiencies. Instead of directing resources to students, the system continues funneling money into a growing bureaucracy, with higher salaries and expanded administrative roles instead of improved instruction. More money has never been the solution, yet lawmakers continue doubling down on the same broken model.

The reality is clear: Texas students suffer under an education system that fails to deliver quality outcomes despite record spending.

HB 3 attempts to address this by introducing ESAs, giving families more choices in spending their education dollars. However, the current proposal is too limited, covering only about 1.5% of Texas' 6.3 million students.

While the bill includes an escalator to expand eligibility to those on a waitlist, it depends on future legislatures for funding—an uncertain and flawed approach. Additionally, HB 3 imposes unnecessary restrictions on accredited institutions and education-related purchases, making the program more bureaucratic than necessary.
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Meanwhile, HB 2—the other half of the so-called “Texas Two-Step” package—proposes an additional $8 billion for government schools. Instead of reforming the broken system, this approach reinforces the monopoly, raising the basic allotment per student and further entrenching a model that has consistently failed to improve student outcomes.

Texas must go beyond incremental reforms and adopt a universal ESA system that allows every student access to education funding that follows them rather than being trapped in a failing system. A fully funded ESA program would allocate $12,000 per student, allowing families to use taxpayer funds for approved educational expenses such as tuition, homeschooling, tutoring, and career training.

Shifting from a district-based to a student-based model would empower families and reduce system inefficiencies. This would save taxpayers nearly $20 billion annually and cut school district maintenance and operations property taxes by two-thirds.

Expanding school choice is not just about students—it also benefits teachers.

The government school system operates as a monopsony, as it is the dominant employer of teaching services. This restricts teachers' bargaining power and limits salary growth. A competitive education market would increase teacher pay, with estimates suggesting a potential salary increase of at least $14,000. High-quality teachers could see as much as $28,000 in additional income.

Texas can lead the nation in education reform by passing HB 3 with significant improvements and rejecting HB 2’s outdated approach of throwing more money into the broken system. Lawmakers should ensure that government schools receive no more than what current law requires and that parents have real choices in how their children are educated.

The future of Texas education depends on bold action. Rather than reinforcing a bloated bureaucracy, the state should transition to a funding model that prioritizes students rather than systems. While HB 3 is a step in the right direction, it must be expanded to ensure that every child in Texas has the opportunity to thrive.

Read my testimony with more information and sources: 
https://x.com/VanceGinn/status/1899457920133108024
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    Vance Ginn, Ph.D.
    ​@LetPeopleProsper

    Vance Ginn, Ph.D., is President of Ginn Economic Consulting and collaborates with more than 20 free-market think tanks to let people prosper. Follow him on X: @vanceginn and subscribe to his newsletter: vanceginn.substack.com

    View my profile on LinkedIn

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