The Arc of Texas Provides Input on Funding for Students with Disabilities

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House Bill 2

Verbal Testimony on HB 2

Good [morning/afternoon], Chair Buckley and members of the committee. My name is Sabrina Gonzalez Saucedo, and I am the Director of Public Policy at The Arc of Texas, testifying on HB 2.

First, I want to sincerely thank Chairman Buckley for incorporating many of the recommendations of the Special Education Funding Commission into this bill. These reforms are a critical step toward securing adequate funding for students with disabilities across the state. To further strengthen the impact this bill will have, I want to focus on two critical recommendations.

First, I ask the committee to increase the special education funding allocation. Section 48.1022(b), as amended, would provide approximately $615 million in additional funding for special education. While this investment is appreciated, it does not close the estimated $1.7 billion funding gap between state allocations and district expenditures. To make a meaningful impact and properly support the transition to an intensity-of-service-based funding model, we recommend that the Legislature appropriate $615 million in each fiscal year of the biennium—totaling $1.23 billion.

With that in mind, our second recommendation focuses on an important provision in the bill that is unrelated to special education finance. Section 29.0056 requires school personnel to inform families about State Supported Living Centers (SSLCs), which are the most restrictive and costly residential option for children with intellectual disabilities. Instead of requiring school personnel to provide information about SSLCs, we believe families should be referred to their Local IDD Authority, which is better equipped to provide information on all available supports that can help children remain in family homes and prevent institutionalization whenever possible. We urge the Legislature to strike this provision from the bill.

Thank you for your leadership and commitment to students with disabilities. I appreciate your time and am happy to answer any questions.

Written Testimony on HB 2

The Arc of Texas Recommendations to HB 2 (89R) As Introduced

The Arc of Texas applauds the authors of HB 2 for their dedication to addressing the critical need for updates to Texas’ special education finance system. This legislation represents a much-needed step toward ensuring equitable and adequate funding for students with disabilities across the state. We are pleased to provide the following recommendations to further strengthen and refine the bill to maximize its impact on Texas students, families, and schools.

1. Special Education Allotment Formula: Section 48.1022(b), as amended, requires TEA to boost the statewide aid for special education by approximately $615 million. To meaningfully address the $1.7 billion funding gap in special education funding, the legislature should appropriate $615 million in each of the fiscal years of the biennium, resulting in a grand increase of $1.23 billion by the end of the biennium.

Recommendation 1: Increase the statewide increase for special education in Section 48.1022(b) to $615 million in each of the fiscal years of the biennium, resulting in a grand increase of $1.23 billion by the end of the biennium.

2. Stakeholder Input on Defining Funding Tier Weights and Service Group Amounts: Section 48.102, as amended, would assign TEA with the responsibility of defining funding tier weights and service group amounts in its transition to an intensity of service based funding model. To accomplish this duty, TEA should be directed to engage in a specific process to arrive at its proposal.

Recommendation 2: In developing the tiers and service group amounts, the commissioner shall consult with school district superintendents, the continuing advisory committee appointed under Section 29.006, and other relevant stakeholders.

3. Considerations in Establishing Service Groups: In addition to placement in one of the weighted funding tiers, many students also require additional services that would cause them to generate additional Service Group Funding for their LEA.

Recommendation 3: Require inclusion of educational interpreters, development of behavioral intervention plans, and personal care services not covered by the School Health & Related Services Program into service groups.

4. Enrollment-Based Funding: Texas’ current funding system, based on average daily attendance, penalizes schools when students with disabilities are absent due to medical needs or therapies, despite ongoing costs for staff and resources.

Recommendation 4: Consider using enrollment-based funding as opposed to average daily attendance.

Opposition to Sec. 29.0056 in House Bill 2

The Arc of Texas opposes the SSLC provision in Sec. 29.0056. This provision has the potential to increase the number of institutionalized children with disabilities and would have a detrimental impact on children with disabilities and their families.

What would this SSLC provision do?

This provision would require school district personnel to provide parents of students with disabilities with information about State Supported Living Centers (SSLCs) when discussing possible residential options.

What would this SSLC provision do?

Main Concerns

Inappropriate Role for Schools: It is not the role of school district personnel or the ARD committee to provide information to parents on SSLCs. Local IDD Authorities are the most informed and appropriate entity to provide information about residential placement options.
Unnecessary Duplication of Efforts: A Residential Options Brochure already exists to provide families with balanced information about available placements, making this provision unnecessary. Rather than duplicating efforts, families should be directed to existing resources: Residential Options Brochure
Contrary to Family Values and Best Practices: Both the federal government and the state of Texas recognize that SSLCs are the most restrictive residential placement for children with disabilities. Children should grow up and live with their families whenever possible, and institutions are not family homes. Policies should prioritize supports that help families stay together and ensure children can be raised in loving, nurturing environments rather than being institutionalized.
High Cost to the State: SSLCs cost Texas roughly $28,300 per month per resident, whereas HCS Waiver Residential services cost taxpayers approximately $6,600 per month per individual (Cost Comparison Report 2022). By highlighting SSLCs as an option, we risk influencing families to gravitate toward the most costly and restrictive setting. Even if this bill results in just three additional students becoming residents of SSLCs, it would cost Texas over $1 million per year.

Recommendation 5: Strike Sec. 29.0056 (pg. 8), or consider using language Sec 29.0055 (pg.8) from the introduced version of SB 1474 (88R), which ensures families receive guidance from the appropriate entity—Local IDD Authorities.

Thank you for considering the aforementioned recommendations. For more information, please contact Sabrina Gonzalez Saucedo, Director of Public Policy & Advocacy at The Arc of Texas at sgonzalezsaucedo@thearcoftexas.org.