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Leander ISD presses state for fix after House Bill 2 funding error that may cost district about $10 million

5864844 · September 10, 2025
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Summary

District officials told trustees they and nine other Texas school districts were adversely affected by a House Bill 2 funding change that removed certain hold‑harmless protections, potentially reducing state aid to Leander ISD by roughly $10 million; trustees were urged to press legislators and the Texas Education Agency for a remedy.

Leander ISD officials told the board they are part of a cohort of districts that appear to have lost state hold‑harmless funding after the recent passage of House Bill 2, and they are working with state representatives and TEA to seek a correction.

What administrators said: Chief Financial Officer Pete Poppe summarized the technical effect: earlier changes in school finance reduced local tax rates while the state adjustment that was supposed to replace lost local revenue did not fully protect some recapture districts, leaving a roughly $10.5 million gap that the district still hopes the Texas Education Agency will address. "We were the poster child on that piece," Poppe said, describing ongoing conversations with the commissioner’s office and representatives; he said districts expect an answer "in fall/winter."

Why it matters: Poppe and other administrators said that the district previously counted some of the restored funding in planning and that the unresolved hold‑harmless amounts materially affect the size of the shortfall trustees are being asked to address.

What officials are doing: Leander ISD staff have coordinated with nine other affected districts, had data runs prepared for the commissioner and encouraged parents and community members to contact state board, legislators and the TEA. Dr. Gearing and trustees urged constituents to press representatives; the superintendent said the commissioner has requested additional runs and will take the matter through the Legislative Budget Board and governor's office as part of the process.

Public reaction and next steps: Several trustees and community members called for a public call to action to urge lawmakers and the commissioner to fix the error; administration said letters are already being exchanged and that the district is coordinating with the other affected districts and legal/financial advisors.

Ending: The board asked administration to continue updates on the TEA review and to provide a clear, shareable explanation the public can use to advocate with state leaders.