HOUSTON, Texas – Last month, the largest school district in Texas, the Houston Independent School District, held a budget workshop headed by Superintendent Mike Miles.
The purpose of the workshop was to create a budget for the 2025-2026 school year and discuss the district’s financial health and budget strategies.
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Miles said the district is working hard to present a balanced budget by the 2026-2027 school year, as it faces challenges like declining enrollment and legislative changes.
Enrollment Decline and Potential School Closures
One of the biggest challenges the district is facing is a significant drop in student enrollment. Over the past 10 years, about 30,000 students have left the district. This decline means that the district has to think carefully about how to use its resources effectively. While no schools will close in the 2025-2026 school year, the district is considering proposing closures for the 2026-2027 school year. This strategy is aimed at making sure resources are used wisely and that the district can continue to operate sustainably.
Safety and Health
The district plans to invest $100 million over the next two years into the “most urgent security and health projects,” including $40 million in the 2025-2026 school year for capital improvements in security and health, in addition to the regular allocated funds spent on maintenance and capital improvements.
School Funding and Resources
The number of New Education System schools will remain at 130 for the 2025-2026 school year. PUA (Per-Unit Allocation) schools will receive full funding based on their enrollment and attendance. If any PUA school receives an “F” rating, the district will implement the NES model at that school. Additionally, schools facing budget cuts will receive subsidies to help maintain educational quality.
Legislative Impact
The district said it’s keeping a close eye on legislative developments that could impact its budget. It anticipates increases in state compensatory education allotments and possible mandates for teacher salary increases. While the district is cautious, it remains hopeful about potential state funding increases, which will play a crucial role in shaping its budget and resource allocation plans.