During a May budget workshop, Houston ISD officials outlined a proposed budget that they say “keeps cuts as far away from the classroom as possible”, despite a projected loss of 4,000 students and tightening revenues. Simultaneously, the school district faces criticism over whether the budget for the upcoming school year meets student needs, particularly in special education and teacher retention.
The workshop, the second of three planned budget sessions before a June vote, centered on HISD’s proposed fiscal year 2026-27 spending plan, which Superintendent Mike Miles described as “very close to a balanced budget” despite declining enrollment and reduced federal funding.
“We need the things that will get us the results for kids,” Miles told the board, framing the budget around student academic performance and long-term financial sustainability.
Declining enrollment and budget concerns
District officials said HISD expects to lose roughly 4,000 students next school year, a decline Miles attributed in part to “immigration-related policies” and other broader factors. That means that for each student who does not join HISD next year, they take with them $6,215, i.e., the state’s basic allotment for each student.
Because school funding is tied to enrollment and average daily attendance, the school district expects lower weighted attendance revenue even as attendance rates slightly improve.
According to figures presented during the workshop, HISD projects approximately $2.036 billion in estimated revenue and about $2.037 billion in expenditures, placing the district near balance with a projected deficit of roughly $790,000 that would be covered through fund balance reductions, said Daniel Flores, senior executive director of budgeting at HISD.
He emphasized that the numbers remain preliminary and could shift before board approval in June.
Flores also told board members the district’s general fund, the largest portion of the budget, totals nearly $2 billion and is driven largely by local property tax revenue.
The district also expects roughly $177 million in federal grant revenue, down about $18 million from the previous year.
Miles said federal uncertainty and funding disruptions contributed to the decline.
“That’s the amount of money we didn’t receive this year that we should have received from the federal government,” Miles said, adding that school districts across the country faced similar reductions.
Concerns
Even as district officials defended the proposal as fiscally disciplined, public speakers repeatedly tied budget concerns to broader frustrations with HISD under state-appointed leadership.
One of the main points of contention is HISD’s proposal to move students with disabilities to new campuses next school year to learn in a more “contained” setting, which has led to a U.S. Department of Education’s Office of Civil Rights investigation.
Several speakers criticized the district’s proposed restructuring of special education services, warning that moving these students to centralized “hub” campuses could create inequities without clearly accounting for those costs in the budget.
“As a sister of a special education student, it is heartbreaking to see HISD move toward separating students with disabilities into hub schools away from their peers and communities,” student Marie Rodriguez said during public comment, arguing the district was creating both educational and financial risks by moving vulnerable students. “Students with disabilities deserve the same opportunities, education, and social experiences as other students. and moving them because of their disabilities feels unfair and harmful.”
Elected HISD Trustee Michael McDonough also questioned whether HISD had fully examined the downstream financial effects of planned special education changes, including transportation burdens on families and reductions in school-level funding despite students remaining on campuses. He urged district leaders to look beyond headline data and avoid “confirmation bias” when evaluating community feedback.
Teacher salaries
Miles said HISD has already invested heavily in employees by raising teacher pay substantially over the past three years.
During the presentation, he said the district increased teacher salaries by $15,000 over three years and plans to continue raising wages, including increases for central office employees and hourly workers whose minimum pay would rise from $15 to $17 an hour under the proposed budget.
In total, the central office cuts amount to $7.9 million.
“We have a tight budget, but we wanted to prioritize raising salaries not just for teachers but also central office,” Miles said.
The proposal also includes continued spending priorities tied to academic interventions and school models that the school district says are driving student achievement gains. Miles repeatedly linked budget decisions to student outcomes, saying HISD must direct limited resources toward initiatives that improve performance rather than preserving every existing expense.
As board members prepare for a June vote, HISD officials maintain the proposed budget reflects difficult but necessary choices in a period of shrinking enrollment and uncertain revenues.
