Updated at 7 p.m.: Revised to include additional information throughout

AUSTIN -- Texas's top elected officials have struck a deal on the priority legislative issues of increasing school funding, giving teachers raises and delivering property tax relief.

At a Thursday afternoon press conference, with four days left in the legislative session, Gov. Greg Abbott, Lt. Gov. Dan Patrick and House Speaker Dennis Bonnen -- flanked by the lawmakers who crafted the school and property tax bills -- announced the House and the Senate had smoothed over their differences to deliver final legislation that will be passed into law by Monday.

The final version of the bill is $11.5 billion over the next two-year fiscal period -- increasing classroom spending by $4.5 billion, lowering property taxes by $5 billion and increasing teacher salaries by $2 billion.

"I made some pretty bold promises to the people of Texas," Abbott said. "I said we must reward teachers and school districts that achieve results, we've done that. I said we must prioritize spending in the classroom. We've done that."

"I said we will do what no one thought possible. We will finally fix school finance in Texas. And I'm proud to tell you today we are announcing that we have done exactly that."

Pay raises

Teachers won't get $5,000 pay raises, as was promised by the Senate. Instead, salary increases will vary from district to district.

In total, lawmakers are spending $2 billion this biennium for increased compensation for teachers, librarians, counselors and nurses with priority on veteran educators. About $1.6 billion of that will be for direct salary increases. The rest of the compensation increases comes in the form of merit and incentive pay and retirement benefit increases.

Patrick said a veteran teacher could expect about $4,000 more a year in their "total compensation package." However, that figure includes increases to retirement benefits.

The raises are tied to the state's increase to the basic allotment -- the minimum per-student amount the state funds schools. The basic allotment will increase from $5,180 per student to $6,160.

Thirty percent of the increase that school districts receive from the basic allotment hike will be dedicated to raises -- most of which must go to teachers, nurses, counselors and librarians. School districts are being told to weight the raises toward teachers who have at least six years of experience.

A quarter of the money designated for salary increases can be used for any full-time employee, which gives school districts flexibility to give even steeper teacher raises, or to other staff members like bus drivers, teachers' aides and cafeteria workers.

Rep. Dan Huberty, R-Humble, stressed that merit pay would be completely decoupled from STAAR test assessments, a point of contention for teacher groups and Democrats.

BREAKING: We are about to announce agreement on all the big issues this legislative session. More than $5 billion in property tax reduction (more each biennium) + limits on ability to raise your property taxes more. More funding for schools + teacher pay raises. #txlege — Greg Abbott (@GregAbbott_TX) May 23, 2019

Property taxes

Property owners won't see dramatic tax cuts, but they will get some relief to the tune of $5 billion statewide over the next two years. That means homeowners could expect a few hundred dollars off their bills in the first two years, and then smaller tax increases in the future.

What was initially presented at the beginning of the year as a transformational school funding bill --with a smaller amount of money earmarked for property tax relief -- ended up being a bill that spends about equally on schools and tax relief.

"We are disappointed that our state leaders prioritized property tax breaks over long-term, sustainable support for the public schools our kids deserve," said Ann Beeson, CEO of the liberal-leaning Center for Public Policy Priorities. "This compromise bill flips the priorities, putting $4.5 billion toward classrooms and over $5 billion to tax breaks."

Louis Malfaro, president of Texas American Federation of Teachers, said he was concerned about the apparent shift in priorities.

"According to these three state leaders, there is more money earmarked for property tax relief than for public school children, a disappointing misplacement of priorities given the extreme needs of our schools," Malfaro said.

A senior economist with the conservative Texas Public Policy Foundation said he was pleased to see the Legislature go above its initial proposal to deliver more meaningful tax cuts.

"Texans will actually see their property taxes go down from year to year," Vance Ginn said. "This is a plan that reflects the fiscal responsibility Texas is known for."

Abbott said the $5 billion for property taxes would increase in future years, as property tax rates continued to be pushed down as property values rise. However, the officials did not detail how they planned to fund additional property tax relief in the ensuing years.

In 2020, school districts on average could reduce school property tax rates by 8 cents per $100 of valuation, and 13 cents in 2021.

Under the plan, property tax increases for school districts would be capped at 2.5%. The cap for cities and counties would be 3.5%, which was passed under the Senate Bill 2 tax legislation. Those caps for cities and counties could be exceeded if voters approved.

Details about how the plan would affect individual cities, counties and school districts weren't available Thursday.

Other items

Under the final version of the bill, full-day pre-kindergarten for low-income children will replace the half-day program now funded -- something school advocacy groups called a historic achievement.

"We are thrilled the Legislature is poised to pass full-day pre-K funding," said Peter Clark, a spokesman for Texans Care for Children. "This step will ensure that more Texas kids start kindergarten ready to learn and become strong readers by third grade. We appreciate state leaders' hard work this session to support full-day pre-K."

The bill also weans the state's public education funding reliance off local property taxes. Under the plan, the state's share of state-local funding of public schools would increase to 45% over the next two years, from 35% now.

The bill also spends an estimated $452 million over the next two years on an outcomes-based funding program -- rewarding schools with bonus money for every student who graduates and enrolls in college or the military. It does not include a less-popular version of outcomes-based funding that gives bonuses based on third-grade reading scores -- a proposal that the Senate had wanted.

Dallas ISD Superintendent Michael Hinojosa said he is still processing the details but is pleased with what he's seen.

"The bottom line is that we're much better off than when we started this journey back in January," Hinojosa said. "I'm certainly relieved. I'm more relieved than I am anxious."

More money from Dallas taxpayers will be able to bolster much-needed programs now that the state is footing more of the bill, Hinojosa said. DISD's tax ratification increase included more money to expand pre-kindergarten efforts. Now that the bill includes money for full-day pre-K for low income students, Hinojosa said DISD can use the district's money on efforts to improve academics in the middle school grades, for example.

Hinojosa said he's glad districts will have more flexibility to implement teacher pay raises rather than the across-the-board proposal in the Senate's original plan. Hinojosa is hopeful that DISD can use some of the new money to funnel toward the district's own merit-based evaluation system for teachers and principals.

"While I knew very little about what's actually in there, the concept is that it does provide us with more flexibility," Hinojosa said.

Austin Bureau Chief Robert T. Garrett and staff writer Eva Marie Ayala in Dallas contributed to this report.