With its $2 billion budget now approved, the Houston Independent School District enters the 2026-27 school year with its academic reform agenda. The school district’s board of managers accepted a $24.6 million general fund deficit as it pushes forward with goals of delivering higher student achievement and AI-focused learning while absorbing declining enrollment and public debate over the expansion of Superintendent Mike Miles’ controversial New Education System (NES) curriculum.
“Our budget supports what matters most: strong instruction, better outcomes for students, and responsible use of taxpayer dollars,” Miles said during previous budget discussions. “We are making deliberate choices to protect classrooms, invest in teachers and principals, and maintain long-term financial stability.”
The board also approved a tax rate of $0.8421 per $100 of assessed value, down from last year’s $0.8783, partly because the prior year included a disaster-related rate increase. Despite a modest rise in average home values, from $428,290 to $434,143, the estimated property tax bill for the average Houston residence is projected to fall from $2,272 to $2,217, a decrease of about $55.
What the budget shows
According to district budget documents
- Total expenditures: $2.59B (including general fund, debt, and nutrition services), up 2% since 2025.
- General fund deficit: Revenues are projected at $2B, while expenditures are $2.015B, requiring a $791,000 draw from the fund balance to cover the gap.
- Instruction spending: Remains the largest category at roughly $7,000 per pupil, down about $200 from last year.
- Debt service: Up nearly 13%, reflecting the district’s $1.3B in outstanding debt.
- Student transportation: Increasing from $43 million to $50 million.
Reform investments and school funding
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
HISD officials estimate nearly 63,400 students will attend campuses under its New Education System reform model, with the district allocating an average of $8,459 per student in those schools, $2,194 more per pupil than in schools outside NES.
The budget is also built on a projected total enrollment of approximately 164,812 students, considering a decline of about 4,000 students from the previous year.
During a budget workshop, Miles said the budget prioritizes student achievement and employee compensation, highlighting $15,000 in teacher pay raises over the past three years, a proposed increase in minimum hourly pay from $15 to $17, and $7.9 million in central office cuts.
“Our budget supports what matters most: strong instruction, better outcomes for students, and responsible use of taxpayer dollars. We are making deliberate choices to protect classrooms, invest in teachers and principals, and maintain long-term financial stability.”
Mike Miles, Houston ISD Superintendent
The district is also investing an additional $4.5 million into nine “Future 2” schools designed to prepare students for an AI-driven world.
The investment follows the closure of at least 12 campuses and an expected $3.8 million loss from the transfer of operations at four top schools to nonprofits through Senate Bill 1882 partnerships.
Criticism from speakers and trustees
Before the vote, public speakers urged the board to reject the budget.
Former HISD teacher Laura Henry warned that ongoing educator attrition carries lasting financial consequences.
“Teacher loss is a financial loss. Student loss is a financial loss,” she told the board, adding that many of her former colleagues “are never coming back.”
Elected trustee Maria Benzon challenged the district’s 1882 partnership agreements, arguing they are costing rather than saving money. Benzon also flagged that instructional and school leadership spending has increased by $119 million from before the 2023 state intervention.
“Miles told the community that 12 school closures were about saving money. This budget tells a different story,” Benzon said. “Stop wasting taxpayer dollars.”
