With the growth in special education students, some districts came face-to-face with a gap in how much the services cost and the actual money they had on hand. In a 2023 report, advocacy group Disabilities Rights Texas noted a $2.3 billion shortfall in local educational agencies' budgets for special education programs in 2020-21.
However, Texas schools could see relief after Gov. Greg Abbott signed House Bill 2, which spends $850 million on overhauling special education funding to allocate resources based on students’ individual needs, rather than rather than the students’ instructional setting.
The new special education funding won’t be allocated to school districts until the 2026-27 school year, according to the TEA, but districts are already brainstorming where they want the money to go.
“Any increase in funding will be utilized to close that gap,” WISD Communications Director Sarah Blakelock said.
While MISD said it does not yet have estimates from the state on the exact funding number it will receive, district officials said they have clear priorities. The funds will go to key areas such as increased support for inclusive practices in general education settings, expanded dyslexia services, additional behavioral specialists and more evaluation personnel.
“Special education expenditures in MISD have continued to rise significantly,” MISD Superintendent Mark Ruffin said. "We remain hopeful that this additional funding will have a meaningful, positive impact on our students and schools, and we look forward to learning more as final figures become available."
Diving deeper
Wrapped up in the HB 2 special education funding is $1,000 set aside for each child’s initial special education evaluation, according to the TEA.
According to a June 24 presentation, CISD said this allotment alone could save the district about $2.5 million.
Michael Holland, executive director of the Region 6 Education Service Center, which provides services for school districts including CISD, MISD and WISD, said full and individual evaluations for students can range from $1,000-$4,000 depending on the type of evaluation. He said the additional $1,000 reimbursement will help offset that cost, but many other expenses remain for districts to contend with, such as overtime and part-time work.
“The cost of providing special education services for the [local education agencies] in Region 6 can be extensive,” Holland said. “[Districts] struggle with the cost of having to contract many of the services for the students they teach.”
However, other funding provided by HB 2 may help to offset costs in other ways, Holland said. HB 2 will provide permanent raises for educators and support staff and set aside money for schools to spend on fixed costs, such as utilities and insurance.
CISD’s Chief Financial Officer Karen Garza said while HB 2 funding will help address some of the district’s funding challenges, it is not comprehensive in its scope.
What they’re saying
- “One of the areas that we were most ... disappointed with was the special education funding that we received,” Garza said Aug. 6. “It did help to close the gap somewhat, but certainly not to the extent that we had hoped.”
- "The transition to an intensity of services model represents a critical step forward,” Ruffin said.
CISD, MISD and WISD aren’t alone, as TEA data shows that the number of students receiving special education services across the entire state nearly doubled in the last decade.
Since removing the cap on the number of students a district could classify as needing special education in 2017, the number of special education students has increased statewide, according to previous Community Impact reporting. For the 2023-24 school year, 14% of Texas’ total public school and public charter school students received special education services.
Previous Community Impact reporting also found that all 28 districts across the Greater Houston area saw a rise in students receiving special education services from 2020-25.
While the rising need for special education services reflects broader state and national trends, MISD said it’s also due to local population growth. The district said other factors have influenced the rise, including:
- Increase in dyslexia identification and addition of dyslexia services to be provided under special education
- Early childhood referrals on the rise
- Increase in evaluations for students in private and home school settings
- High number of special education transfers into the district
MISD said to prepare for the future, it monitors enrollment and service trends, conducts needs assessments across campuses and is exploring ways to expand support programs to make sure the district has the right tools as it continues to grow.
“Our goal is to be proactive rather than reactive, ensuring we are prepared not just for current demands, but also for future needs,” Kerri Clark, MISD executive director of specialized learning, said.
WISD officials said they're monitoring student and academic data to strategically assign staff members. Additionally, the district said targeted professional development has been, and will continue to be, offered to address areas of growth for its special education teachers and other staff members.
CISD officials declined to comment further on the possible effects of HB 2 as of press time.
“Conroe ISD is continuing to review HB 2 and its effects on the district’s special education programs,” district officials said in a statement.
Meanwhile, Holland said Region 6 will have internal training for its staff to assist in understanding the changes of HB 2.
“A legislative training will be created and presented to school boards across the region so they can receive their required update,” Holland said.
