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HISD Delays Vote on $2 Billion Budget With Nearly $25 Million Shortfall

The postponement intensifies pressure to close a budget gap through steep central-office cuts, program reforms and one-time revenue moves before the June 30 fiscal deadline.

Overview

  • The state-appointed board pushed the budget vote to June 25 after projections shown June 12 indicated the proposed $2 billion plan would spend about $25 million more than expected revenue.
  • HISD projects a loss of roughly 4,000 students next year that will cut about $50 million in state funding and has approved 300 central-office job eliminations plus the closure of 12 schools to lower costs.
  • District leaders propose a districtwide pay-for-performance teacher system that would use Teacher Incentive Allotment funds, set salary bands roughly between $70,000 and $92,000, and allow termination for teachers rated unsatisfactory.
  • The draft budget includes a $4.5 million pilot to convert nine campuses into 'Future 2' schools focused on AI-era skills, with about $500,000 allocated per school for experiences, staffing and equipment.
  • HISD expects nearly $2 billion in general fund revenue largely from local property taxes but faces trade-offs from outsourcing partnerships that yield some state funding while projecting a net $3.8 million loss, and leaders are weighing one-time property sales to close the gap before June 30.