In a significant development, Houston Independent School District (HISD) administrators have instructed several campuses to implement staff cuts and reduce spending just a month into the new school year. This action comes as the district grapples with the financial strain resulting from declining enrollment, a challenge that has persisted three years into a state takeover.
According to an investigation by The Texas Tribune, state-appointed Superintendent Mike Miles has introduced a comprehensive reform initiative known as the New Education System. While aimed at enhancing educational outcomes, these reforms have put considerable pressure on district finances. HISD has already utilized its financial reserves and made prior cuts to fund these costly changes while simultaneously losing tens of millions of dollars in state funding due to enrollment declines.
District officials have described the recent reductions as part of the annual “campus leveling” process. This process allocates funding based on how closely each school’s enrollment aligns with projections made in spring. HISD officials indicated that employees affected by these reductions might be reassigned to other positions within the district.
Nevertheless, the district’s press release acknowledged that these cuts reflect a “broader financial environment” characterized by dwindling enrollment and constrained resources. Specific details regarding the number of campuses impacted, the total spending reductions, or the exact number of positions at risk were not disclosed.
The budget for the current year was built on a forecast predicting a loss of 4,000 students, significantly lower than the approximately 8,000 students HISD lost in the previous year. However, enrollment drops have accelerated annually since the takeover began, as noted in the Tribune’s analysis. The funding model for public schools in Texas is largely based on student attendance, meaning that every student who leaves translates to decreased revenue for the district.
Superintendent Miles stated, “We have worked hard over the last three years to put HISD on stronger financial footing while putting more resources into classrooms and increasing teacher pay. But we also have to adjust when enrollment and revenues change. We have to make responsible decisions now so the District remains financially strong and can continue investing in the things that have the greatest impact on student achievement.”
Communications obtained by the Tribune from various campuses indicate the extent of the financial challenges. For instance, at Lamar High School, Principal Rita Gaves notified parents of a looming $500,000 shortfall, which will adversely affect programs such as choir and debate. Similarly, at T.H. Rogers Middle School, Principal Suparna Vashisht informed parents that an assistant principal and a librarian would be reassigned to reduce expenditures.
Parents have also expressed concerns regarding the enrollment situation. Brooke Markeloff, a parent at T.H. Rogers, noted that while the school typically has a steady stream of applicants on its waitlist, the overall enrollment numbers for this year have yet to be released.
Analysis from the Texas Tribune reveals that HISD has consistently fallen short of its enrollment projections, averaging a deficit of 1,700 students annually since the takeover began. Although official enrollment counts are not due until October, the Houston Chronicle reported that the district experienced a loss of 10,000 students from the previous year, widening the gap between projected and actual figures to approximately 6,000 students.
In total, HISD has lost 21,000 students over the first three years of the takeover, at a rate that outpaces other urban districts. These student losses have already cost the district a staggering $190 million, exacerbating the need for recent budget cuts.
Markeloff raised concerns about the long-term implications of these financial challenges, stating, “All of this is unsustainable. …We’re going to eventually hit a wall. It boggles my mind that he’s allowed to spend and make all these changes without anybody checking him. That’s what the board is supposed to do, but we have a board of managers who just rubber stamp everything that he’s doing.”
The state has appointed Commissioner Mike Morath and a board of managers to oversee HISD following the takeover, granting them centralized control over the district. As top Texas officials view Miles’ reforms as a potential model for enhancing academic performance—tapping former HISD administrators to lead other districts undergoing similar takeovers—the financial implications of the New Education System raise critical questions about sustainability. An analysis by the Tribune indicates that the implementation of these reforms costs an individual campus approximately $700,000 in the first year, with an additional $2,000 per student in subsequent years.
An HISD employee, who manages finances at a non-New Education System campus, described the recent directives as alarming. Traditionally, school leaders receive informal guidance about staffing adjustments based on current enrollment during this time. However, this year, the mandate to cut staff was mandatory, leading to concern among employees about potential repercussions for expressing dissent.
Tracy Lisewsky, a parent who has closely monitored the district’s financial activities, expressed her apprehension regarding the early cuts, stating, “Something must be really, really wrong with our cash flow … and the budget, for cuts to be coming this early into the school year.”
HISD operates with an annual budget of approximately $2 billion and employs about 22,600 individuals, including around 10,000 teachers. Similar staffing adjustments have also occurred in other districts across Texas, as they navigate enrollment shortfalls. For example, Fort Worth Independent School District made similar changes last month after discovering that its enrollment was roughly 2,500 students lower than projected, illustrating a broader trend among districts during state takeovers.
Rob Reid contributed to this report.
