The Houston Independent School District is preparing to adopt a proposed $2.04 billion budget for the 2026-27 school year. HISD board members postponed the formal vote and public hearing from June 11 to a special meeting scheduled for June 25, 2026.
That meeting will formalize HISD’s spending plan for the upcoming school year, amid a projected enrollment decline of 4,000 students, while accounting for revenue streams, staffing cuts, pay increases, changes to staff health insurance plans, and board goals for students’ college readiness and support services.
What does the budget say?
According to budget documents, HISD projects $2.036 billion in General Fund revenues and other financing sources for fiscal year 2027, while appropriations total approximately $2.037 billion.
The school district expects to use $790,881 from its fund balance to close the funding gap.
The proposed budget reflects a slight decline from the previous year. General Fund revenues are projected to decrease by 3.9%, while expenditures are projected to decrease by 4.7%.
While presenting the budget, Daniel Flores, senior executive director of budgeting, noted that local property values remain a major driver of district finances.
HISD’s budget relies on a maintenance and operations tax rate of $0.6754 and a debt service tax rate of $0.1667, for a combined rate of $0.8421 per $100 of assessed property value.
Flores said the district is working with an estimated taxable property value of approximately $232.6 billion and projects nearly $2 billion in General Fund revenue, including local sources, state funds, and federal funding.
Where will the money go?
A majority of HISD’s budget will go to instruction, totaling more than $1.14 billion.
Significant investments will be made in school leadership, student transportation, counseling services, health services, technology, and facilities operations, per HISD budget documents.
Budgets tell real stories.
— Defender Network (@defendernetwork) June 10, 2026
HISD’s proposed plan includes raises, cuts, and tough choices for schools. What should always come first for students?@HoustonISD@HoustonCVPEhttps://t.co/kInAQSL6ab pic.twitter.com/go6U5g0rzF
Moreover, HISD officials highlighted disparities in campus funding between New Education System (NES) and non-NES schools.
According to the budget presentation, NES campuses are projected to receive an average of $8,459 per student in 2026-27, compared with approximately $6,265 per student at non-NES campuses, a difference of just under $2,200 per student.
Flores told board members that nearly $2,000 of that gap is attributable to salary costs, while Superintendent Mike Miles said the higher allocation reflects the district’s strategy of directing additional resources toward campuses with more underserved students.
HISD’s teacher compensation is also expected to increase through the pay-for-performance framework, called the Teacher Excellence System (TES), under which teachers can earn between $70,000 and $101,000 annually based on classroom performance. The average teacher salary in HISD has also increased from $68,000 in 2023 to $83,000 in 2026, per HISD documents.
Budget based on board goals
HISD’s budget also takes into consideration the board’s goals of increasing math and reading levels among third-graders, while targeting a jump among students earning both TSI (Texas Success Initiative) readiness and an industry-based certification, from 11% to 26% by 2027.
HISD leaders noted that the graduating class has earned more than $341 million in scholarships and financial aid offers, 7,800 industry-based certifications, and 790 associate degrees and industry credentials through Houston City College.
While school district leaders discussed student achievements and the board’s vision for the upcoming academic year, speakers, including parents and community members, highlighted equity concerns.
Jaylen Wilson, who identified himself as a community organizer, said he taught Black students from Yates High School. Despite being ‘sandwiched’ between two universities, students from the school do not receive adequate post-graduation opportunities.
“Racism guides HISD’s systematic underdevelopment of Black children,” Wilson said. “When I asked the students about their college ambitions, neither UH [University of Houston] nor TSU [Texas Southern University] was mentioned. When I asked them why they think their schools are being shut down and why their food is spoiled and not other students, the group was able to deduce relatively quickly that it’s because of their skin color. I told them, ‘Yes, it is that simple.’”
Sara Robinson, a mentor and social worker based in Houston’s Third Ward who was once an ‘underserved minority child,’ said HISD did not discuss students’ mental health alongside numbers.
“I cannot imagine judging children so harshly based on a test score,” Robinson said. “It shows no understanding for the children who fail their test because they’re stressed over meeting basic needs like the clothes they’ll wear the next day, the food they’re going to eat at home, or whether they’ll even have electricity and water. Do we label them as disappointments, or do they fall into the category that requires raised expectations because they can’t pass a test?”
“Racism guides HISD’s systematic underdevelopment of black children. When I asked the students about their college ambitions, neither UH [University of Houston] nor TSU [Texas Southern University] was mentioned. When I asked them why they think their schools are being shut down and why their food is spoiled and not other students, the group was able to deduce relatively quickly that it’s because of their skin color. I told them, ‘Yes, it is that simple.’”
Jaylen Wilson, a community organizer who taught Black students from Yates High School
The HISD budget also proposes new spending on the Future 2 Schools program that focus on skills related to artificial intelligence ($4.5 million), with the nine Future2 schools receiving $1.35 million, Special Education improvements ($7 million), early childhood education ($4.25 million), health insurance ($4 million), and a $6 million raise for minimum-wage central office employees.
Beyond academics, the board agenda included construction projects at the Northside Launchpad Barbara Jordan Career Center and the Southside Launchpad Career and Innovation Center, policy revisions related to artificial intelligence and instructional resources, investments in special education services, and updates to the district’s student code of conduct.
Taken together, the proposed budget offered a snapshot of HISD’s current priorities, including maintaining fiscal stability while investing in college readiness, workforce credentials, student services, and academic achievement.
