The details
Board managers approved the budget during the board’s June 12 meeting.
According to the adopted budget, HISD officials are expecting to take in around $2.08 billion in revenue in FY 2025-26, which represents a roughly 4.2% increase compared to last year.
The district is proposing a tax rate of $0.8590 per $100 for FY 2025-26, down from last year’s rate of $0.8683 per $100 valuation, budget documents show.
HISD Board President Ric Campo said officials tried to cut as much spending as possible without reducing funding for teachers and instruction.
“You try to keep the cuts as far away from the students and schools as possible, but there's no easy way to balance a budget like this without cutting things and making tough decisions,” Campo said.
A closer look
HISD Superintendent Mike Miles noted nearly half of the budget, or about $1.2 billion, will go toward teacher salaries, including $11.7 million to fund teacher pay raises.
While the spending on teacher salaries is slightly higher than FY 2024-25, Miles said the district made up the difference by cutting around 9% of the district’s central office workforce, which equates to roughly 350 employees.
Budget documents show the district’s Facilities and Maintenance Operations Department will see the biggest cuts with 199 fewer employees next year. Additionally, the district’s Communications and Public Affairs Department is projected to be cut by 78 jobs.
While the FY 2025-26 budget still contains a roughly $39.9 million shortfall, the projected deficit is far smaller than the nearly $528 million budget shortfall officials projected when trustees adopted the FY 2024-25 budget.
“In order to be sustainable, you have to get close to a balanced budget,” Miles said. “We did a great job getting close to that.”
Miles said officials are only planning on drawing around $14.7 million from the district’s fund balance to fund the shortfall, budget documents show. Officials were required to draw roughly $133.1 million from the district’s coffers in FY 2024-25.
According to the adopted budget, officials estimate the district’s fund balance will fall around $785.2 million by the end of FY 2025-26.
What they’re saying
The June 12 meeting was the first for new board managers Edgar Colón, Marty Goossen, Lauren Gore and Marcos Rosales following their appointment by Texas Education Agency Commissioner Mike Morath on June 3.
Three of the board managers who were replaced—including Cassandra Auzenne Bandy, Rolando Martinez and Adam Rivon—voted against the district’s FY 2024-25 budget.
Nearly 130 people signed up to speak during the meeting, with many raising concerns about district leadership.
HISD parent Christine Earle questioned whether the new board managers had enough time to fully digest the nuances of the budget.
“How can you responsibly vote yes on a budget you didn't help create and don't fully understand,” Earle said. “This is not fiscal responsibility. ... It's a reflection of failed priorities and toxic leadership.”
HISD parent Melissa Yarbrough echoed Earle’s concern, noting she believed HISD leadership is to blame for the projected 6,000-student drop in enrollment next year.
“The secret to stop hemorrhaging enrollment is easy,” Yarbrough said. ”Don't treat students, parents and teachers like we're just data on a spreadsheet and start treating us like the community that we are.”
What’s next
Board managers will consider adopting the district’s tax rate in September.
