Houston ISD is moving closer to its goal of producing a balanced budget by the 2026-27 school year, officials announced during a Feb. 27 budget workshop.

The details

HISD Superintendent Mike Miles said the district is projecting roughly $2.1 billion in expenditures while taking in around $2.07 billion in revenue for the 2025-26 school year.

While the projected 2025-26 budget would still contain a roughly $33 million budget shortfall, Miles said the district is still making gains in its goal to produce a balanced budget for the 2026-27 school year.

Last year, board managers approved a roughly $2.1 billion budget for the 2024-25 school year that contained a nearly $528 million budget shortfall.


“[The district’s projected budget shortfall] is only $33 million,” Miles said. “I said ‘only’ because it’s a $2.1 billion budget, and $33 million is very close.”

A closer look

Miles noted officials calculated the current projected expenditures and revenues for the 2025-26 school year budget conservatively due to potential funding changes that could be approved during the state’s 89th legislative session.

According to budget projections, the district is estimating to bring in roughly $243.5 million in additional revenue during the 2025-26 school. Among the sources for the revenue increases include:
  • $44 million through potential basic allotment
  • $32 million through potential teacher salary
  • $10 million for security grants
  • $30 million from other financing sources
Miles noted the district is expecting to lose roughly $67 million in revenue next year due to a projected 8,000 student decline in enrollment. However, he said around $47.2 million would be saved in funding that would have been spent if those students stayed in the district.


Including the $47.2 million saved in funding, Miles said the district is planning on cutting around $208 million in expenditures from the 2025-26 budget. The cost-cutting measures include:
  • $57 million in expenditures for recapture costs
  • $30 million in cuts to department budgets
  • $16.7 million in one-time expenditures
To address maintenance needs, officials said the district is planning on investing $100 million into its most urgent security and health projects over the next two years, including roughly $40 million during the 2025-26 school year.

Also of note

Miles also said the district will potentially shut down some campuses during the Feb. 27 workshop. However, he noted any school closures would not go into effect until the 2026-27 school year.

While Miles did not provide any information regarding specific schools that could be considered for closure during the workshop, he noted any proposals for closures would be brought before the board for consideration later this year.


Miles noted the decision to consider school closures is, in part, a result of enrollment declines that have seen the district’s population drop by more than 30,000 students in the last decade.

Miles said the budgetary impact of closing a small school within the district could save between $1.5 million to $2 million annually, noting the savings would be even higher when factoring in money saved that would have been spent on maintenance and repairs.

What’s next

District officials said budget workshops will be held on the following dates:
  • March 26
  • April 23
  • May 1
  • May 22
Board managers will be required to approve the district’s budget for 2025-26 school year before June 30.