As Texas lawmakers push Senate Bill 2 (SB2)—a controversial voucher program that would redirect public funds to private and homeschool students—education advocates warn of an unintended consequence that isn’t making the headlines: the potential destabilization of the Teacher Retirement System (TRS).
While much of the debate has centered on school choice and funding equity, an actuarial analysis attached to the bill reveals a looming financial risk. The report warns that even a small decrease in projected payroll growth—which could happen as more students leave the public system—could render TRS “no longer actuarially sound.” If that happens, contribution rates may need to increase, shifting the burden onto teachers and taxpayers.
This has educators, financial experts and public school advocates raising the alarm about how SB2 could jeopardize retirement security for the very workforce that keeps Texas schools running.
Educators Speak Out
The stakes couldn’t be higher for Dr. Levatta Levels, a retired Texas educator and a current TRS member.
“TRS isn’t just for teachers,” she said. “It’s for school bus drivers, cafeteria workers, counselors, administrators—everyone who works for a public school or a state college.”
But what concerns Levels most is a section buried deep in the bill’s 254-page text.
“It’s right there in the small print—they’re predicting our fund could be dismantled,” she warned. “The system is not prepared to handle the increased retirees that could enter while fewer people pay into the fund. The fund can’t sustain itself.”
The actuarial report backs up her concerns. It states that under current guidelines, TRS should be funded to pay off unfunded liabilities within 30 years. However, if active payroll declines by just 1% per year, that period would stretch to 35 years—and it would take 12 years before the pension fund even begins to recover.
Levels put it plainly: “The math isn’t mathing.”
Searching for safeguards
While Governor Greg Abbott prioritizes SB2, some legislators, including Senator Royce West (D-Dallas), are questioning its long-term impact.
“It’s going to pass,” West admitted. “So what safeguards are you going to have in there?”
That’s a question advocates are pressing lawmakers to answer before TRS faces irreversible damage.
Levels offered a stark comparison.
“If we knew police officers’ or firefighters’ pensions were at risk of running out in 15 years because of a decision today, it wouldn’t happen,” she said. “So why is it acceptable when it comes to educators?”
Taxpayers can’t afford two school systems
The Texas State Teachers Association (TSTA) has been one of the most vocal opponents of SB2. Beyond the concerns about TRS, the organization argues that Texas cannot afford to fund both public and private education systems with taxpayer dollars.
“Texas taxpayers cannot afford two separate education systems, one public and one private,” said TSTA President Ovidia Molina. “They cannot afford to give tax subsidies to wealthy families with kids already in private school, many of whom will receive vouchers under this bill.”
Financial estimates support that claim. While SB2 would cost taxpayers $1 billion initially, projections show that the program could balloon to $6 billion by the 2028-29 budget cycle.
The bill’s opponents also cite case studies from other states, including Arizona, Florida and Georgia, where voucher programs saw funding triple while public education budgets were cut or frozen.
Another concern? Regulatory standards. Unlike public schools, private institutions receiving voucher funds are often not required to meet the same teacher certification or criminal background check requirements for staff.
At a time when Texas public schools are already facing a teacher shortage, districts are hiring more first-time, uncertified educators just to keep classrooms running.
What’s next for SB2?
With the Senate approving SB2, the bill now moves to the Texas House, where similar voucher legislation failed in 2023. So far, House lawmakers have not introduced their version of an education savings account proposal—a potential roadblock to the bill’s passage.
But for public school employees, the question remains: If SB2 passes, what happens to the retirement system that thousands of educators rely on?
So far, no one has been able to answer that question.
