Hays CISD earns ‘C’ in 2026 Financial Integrity Rating System of Texas

Hays CISD passed the Financial Integrity Rating System of Texas, or FIRST, with a ‘C,’ earning 78 out of 100 possible points. The 2025-26 report utilizes data from FY 2024-25 and indicates a two-point decrease from last year. 

How it works

The FIRST system is how the Texas Education Agency rates the financial accountability of all public school districts in the state. Scores are based on 21 indicators, with four critical indicators that will result in automatic failure if not met, according to previous Community Impact reporting. 

Indicators analyze district funds and measure metrics such as fund balance, debts, student attendance and communication with the public. 

“It’s all about cash flow, fund balance and debt,” Chief Financial Officer Deborah Ottmers said at an Oct. 19 meeting. “And we’re going to continue to have a problem with debt because we have more schools to build. We have a 2025 bond that was approved, and we are in the middle of building those.” 

District officials said they expected scores to dip this year, and that this is not uncommon for high-growth districts like HCISD. 

Looking back

Last year, the district scored 80 out of 100 possible points. Before that, HCISD received “Superior” distinctions for several consecutive years.

The 2026 report found that HCISD failed indicators 6, 7, 8, 9 and 12, which analyzed changes in fund balance, ability to pay short-term debt and the ratio of revenue to expenditures.

Looking ahead

Ottmers anticipates that FIRST scores will continue to improve over the next few years because FY 2026-27 budget cuts will decrease expenditures and increase the fund balance. 

“We have a five-year plan to bring [the fund balance] back to where we need to be, and if the state can find their way to give us some additional funds, that would be wonderful,” Ottmers said.