Houston ISD’s spending habits are under even more scrutiny after a new report revealed a litany of issues. Superintendent Mike Miles released the 32-page report, which highlights several areas of concern regarding the district’s efficiency, including human resources, transportation, overtime, and external contracts. It also criticizes the lack of cohesion in curricula and programs, as well as a bureaucratic structure hindering progress and student outcomes.
The report, titled, HISD Efficiency Report: An analysis of the District-level systems that challenge HISD’s transformation efforts, details eight key problems, explains why they matter, and describes what leaders are doing to resolve each issue.
Among the findings:
- Wasteful spending on a grand scale, even as student enrollment declines
- Extreme overtime abuse
- Contracts for work in every area of the District that could have been done by HISD’s own employees
- Broken HR and transportation systems
- Curricula and programs that were not linked to any particular standards of quality
- A bureaucracy that creates obstacles and is divorced from progress and student outcomes.
Miles said some of the issues are common in urban districts, but he was surprised at the level of problems uncovered by the HISD report.
“I think the level here was higher than what I expected,” Miles said. “I wasn’t totally surprised, but there was some level of, ‘Wow, this is worse than a typical urban district.'”
The superintendent said employees aren’t to blame for the laundry list of problems.
“I always say, ‘When big things go wrong, first look at the system,’ because that’s how people operate,” Miles said.
He said district leaders will work together to create a more efficient system overall so that they can better support teachers and schools.
“So, it’s not just about saving money, it’s about making sure we get our kids to school on time, making sure we do fix the toilet when it breaks on time, making sure our buildings, as old as they are, are as cool as they can be in the summer and as warm as they can be in the winter,” Miles said.
Budget shortfalls
With the district facing a significant budget deficit, currently projected at over $250 million this year, Miles has pledged to address inefficiencies. He emphasized the importance of efficient systems not only for financial savings but also for ensuring essential services like timely transportation and maintenance of school facilities.
The financial strain on Houston ISD has worsened due to declining enrollment and the expiration of federal pandemic relief funds. Despite revenue decreases, costs are rising, particularly with Miles’ controversial “New Education System” reforms set to expand to 130 schools by August. These reforms are anticipated to cost over $100 million this year alone, contributing to the projected budget deficit for the upcoming fiscal year.
Miles aims to bolster the district’s fund balance to at least $870 million by the end of the current fiscal year, with a commitment to maintaining it above $850 million through the 2024-25 fiscal year. However, concerns have been raised regarding discrepancies in reported staff cuts, with records indicating an increase rather than the promised reduction.
Responding to these discrepancies, Miles acknowledged the complexity of the situation but reiterated his commitment to efficiency and cost savings. He emphasized the overall goal of achieving necessary cuts to meet the district’s objectives.
While Houston ISD grapples with internal challenges, other public school systems statewide are directing attention to the State Legislature’s failure to address funding issues adequately. Spring Branch ISD recently announced significant budget cuts, attributing the action to the Legislature’s inaction despite a substantial budget surplus and no additional funding for public education since 2019.
Tackling the problem
District officials say they are working diligently to address the issues.
“The transformation taking place in HISD is the nation’s largest and most significant effort to dramatically improve K-12 education,” said Miles.”Too many of our Houston students are not achieving what we know they are capable of. That’s why we’re making big changes – with urgency – to raise the quality of instruction and ensure our kids catch up in their learning, develop the skills they need for the future world, and graduate ready to succeed in college, work, and life.
“In the course of this transformation, the HISD team has encountered deep and wide problems in our District operations,” Miles added. “Such dysfunction impedes the positive shift we seek to accomplish. We are sharing this report with the community so people know the major challenges in our system, how they impact what educators are working to do for kids, and how we will fix these problems to make our District more effective and efficient. Through the action steps outlined in the report, HISD will become the first urban district to serve all its students well – where excellence is the expectation and failure is not an option.”
