Texas - Texas senators voted Monday night for a bill they say could save teachers' jobs.
It would give school districts more flexibility to manage their shrinking budgets.
Lawmakers are trying to reduce the state's obligation to school districts by $4 billion.
Those opposed to the new bill say tax loopholes and use of the rainy day fund would help relieve part of the deficit, without losing teachers.
"There's no label on a child, not Democrat, Republican, Independent...that child deserves funding for public education," says State Sen. Mario Gallegos, Jr. of Houston.
The flexibility plan allows schools to increase elementary class sizes, in order to have fewer teachers on staff.
It also changes the deadline for a principal to inform teachers if their contract will not be renewed.
And it allows schools to consider performance over seniority when deciding which teachers to lay off.