Texas open enrollment bill would significantly increase school choice

Texas lawmakers made school choice history when Gov. Greg Abbott recently signed Senate Bill 2 into law, establishing the state’s first private school choice scholarship. This is a long-awaited victory for students, but Texas can do more to expand school choice for the millions of students who still wish to attend public schools. Senate Bill 686, already approved by the state Senate and now in the House, would establish a robust K-12 open enrollment program, letting students transfer to any public school in Texas with open seats. 

Currently, in Reason Foundation’s analysis of every state’s laws, Texas has one of the weakest open enrollment laws in the nation, lagging far behind other states with strong laws, such as Oklahoma, Arkansas, and Florida.

Texas lets school districts reject transfer applicants for arbitrary reasons, even when the schools have open seats. And even when transfers are permitted, school districts can charge these students out-of-pocket tuition to transfer to public schools.

For instance, Lovejoy Independent School District, north of Dallas, charged $9,000 per transfer student during the 2023-24 school year. This limits the public schooling options for students whose families can’t afford to pay pricy tuition or live inside a school district’s boundaries. 

It’s also unnecessary, because school districts are already compensated for transfer students through the state’s funding formula. While local revenues don’t follow transfers to their new district, state dollars are more than enough to cover the cost of these students..  As evidence, Lovejoy ISD accepted transfers free of charge during the 2021-22 school year when the legislature seemed poised to limit districts’ tuitioning practices. Yet when the reform failed, Lovejoy reinstated its $9,000 tuition rate on transfers the following year. State funds are sufficient to educate transfer students, but some districts will charge tuition to rake in extra funds.

Senate Bill 686, however, would stop public schools from charging tuition to transfer students. If codified, students could transfer to any Texas public school with openings, regardless of where they live. School districts would no longer be permitted to charge transfer students tuition, ensuring that public schools are free to all students. 

The policy would give students access to more schooling opportunities. Research shows that many students use public school open enrollment to escape bullying, access specialized courses, such as Advanced Placement (AP) and International Baccalaureate classes, shorten commutes, and learn in smaller class sizes. 

Reason Foundation research shows that Texas, Arizona, and Florida students typically transferred to highly rated school districts when given the opportunity. Strong open enrollment policies help students attend schools that are the right fit, regardless of where they live.

Open enrollment can also benefit school districts. Some school districts in California and Wisconsin have seen their enrollment levels increase. The funds that accompany transfers could be critical to helping many school districts stay afloat financially, especially those facing local enrollment drops due to the birth dearth.

Finally, SB 686 would codify key transparency provisions at the state and district levels to help parents know when, where, and how to apply for a transfer and ensure that this information is published online and available to parents and taxpayers.

These public school choice reforms would significantly strengthen Texas’ open enrollment policy, making it one of the best open enrollment laws in the nation. Currently, Texas scores just 36 out of 100 points and ranks 24th, tied with New Jersey, in Reason Foundation’s review of every state’s open enrollment policies. But if SB 686 is passed, Texas would improve to 94 points out of 100 on Reason Foundation’s open enrollment best practices and climb to fifth best in the nation.

The open enrollment improvements in Senate Bill 686 would help Texas seal the deal and establish itself as a true leader in public and private school choice. Most importantly, it could help millions of students in Texas find the right public schools for them, regardless of their home zip code. 

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