89th Legislature

HB 3099

Overall Vote Recommendation
Neutral
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest

HB 3099 seeks to amend Section 12.263(b) of the Texas Education Code to revise the method by which adult education charter programs calculate Average Daily Attendance (ADA) for funding purposes. Currently, the funding is based on a tiered structure that allocates a fractional ADA based on the portion of the school year a student is enrolled. SB 1490 updates this structure to allow for a higher attendance percentage recognition for shorter enrollment periods.

Under the revised structure:

  • A student enrolled for at least 75% of the school year continues to receive 100% ADA.
  • A student enrolled for 50% to less than 75% is now counted at 75% ADA, up from the previous 50%.
  • A student enrolled for 25% to less than 50% is counted at 50% ADA, up from 25%.
  • A student enrolled for 10% to less than 25% is now eligible for 25% ADA, up from 10%.

This change acknowledges the unique educational needs and life circumstances of adult learners, who often face barriers that prevent full-year enrollment. By increasing the proportion of ADA for shorter enrollment durations, the bill provides a funding incentive for charter schools to continue supporting adult education students, even if they can only attend part of the academic year.

Author
Stan Gerdes
John Lujan
Terri Leo-Wilson
Co-Author
Ben Bumgarner
Trey Martinez Fischer
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 3099 would result in a significant fiscal impact on the state’s Foundation School Program (FSP) by increasing the funding received by adult education charter schools based on revised calculations for Average Daily Attendance (ADA). The Legislative Budget Board (LBB) estimates a negative impact of approximately $20.4 million on General Revenue funds over the 2026–2027 biennium.

Specifically, the Texas Education Agency (TEA) projects that the bill will cost:

  • $8.3 million in FY 2026
  • $12.1 million in FY 2027
  • With annual costs escalating to $21.2 million by FY 2030.

This increase is driven by changes to how ADA is credited for partial-year enrollment, which effectively raises the per-student funding for adult learners who attend for less than a full school year. TEA further notes that the rising cost projections reflect anticipated growth in both the number of adult charter schools and student enrollment under this policy.

At the local level, open-enrollment charter schools operating adult high school programs would benefit from increased funding through the FSP. While no direct fiscal impact is anticipated for local governments beyond these schools, the reallocation of state funds represents a notable shift in education finance priorities. No appropriations are made directly by this bill, but it would authorize and require such spending to be enacted through the appropriations process.

Vote Recommendation Notes

HB 3099 is a narrowly focused, corrective measure that aims to fix a drafting error in Texas’s adult high school charter funding model. Originally, in 2021, the Legislature intended to move away from a rigid attendance-based formula toward one more reflective of adult learners' flexible participation, accounting for part-time enrollment due to family and work obligations. However, an oversight left out one of the key tiers in the funding formula, resulting in unintended financial shortfalls for adult charter schools. HB 3099 amends the law to align practice with the Legislature’s original intent.

From a policy standpoint, the bill enhances fairness and equity in funding. It does not expand the scope of government, introduce new mandates, or create a new program. Instead, it adjusts the funding tiers for adult students to ensure that schools receive proportional support for their educational services. This correction supports individual liberty and personal responsibility by enabling nontraditional students to pursue high school completion with institutional backing that reflects their actual participation.

However, the bill comes with a considerable fiscal cost—an estimated $20.4 million over the 2026–2027 biennium, increasing annually thereafter. While it does not grow government in a structural sense, it does increase the taxpayer burden without introducing new accountability mechanisms or offsetting provisions. In that light, concerns about state budget discipline and prioritization of spending are valid.

For these reasons, Texas Policy Research remains NEUTRAL. This position acknowledges the necessity and good-faith intent of the bill while raising appropriate caution about its financial impact. Stakeholders and lawmakers may wish to explore future opportunities to couple such funding adjustments with performance-based safeguards or spending caps to ensure responsible stewardship of taxpayer resources.

  • Individual Liberty: The bill supports individual liberty by making adult education more accessible. Adult learners—many of whom are balancing work, parenting, or other responsibilities—need flexible schooling options. By adjusting the funding model to reflect part-time participation, the bill helps ensure that these students are not penalized for nontraditional attendance. This promotes educational choice and upward mobility, key tenets of personal freedom and self-determination.
  • Personal Responsibility: The bill empowers individuals seeking to improve their lives through education. Adult learners attending high school programs are actively taking responsibility for their futures. By fixing the funding formula, the bill strengthens the institutions that support these learners. This policy rewards those making the effort to re-engage with education, reinforcing the value of self-betterment through personal initiative.
  • Free Enterprise: Charter schools are a form of market-based education, offering competition and innovation within the public education system. The bill sustains the viability of adult charter schools by ensuring funding reflects real-world attendance patterns. This correction helps level the playing field and preserves a space for educational entrepreneurs to operate and innovate, consistent with free enterprise values.
  • Private Property Rights: This bill does not touch on private property rights directly and has no meaningful impact on this principle.
  • Limited Government: The bill does not expand government in a regulatory or structural sense, but it increases public spending through the Foundation School Program—an ongoing fiscal commitment with no cost cap or performance benchmarks. While the intent is corrective, the resulting increase in taxpayer obligation may raise concerns among fiscal conservatives who prioritize lean government and budget restraint.
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