Northside ISD officials warn school-finance bills fall short as district plans cuts

Northside ISD officials said the district faces sizeable budget uncertainty as the Texas Legislature considers multiple school-finance proposals, and urged trustees to begin making spending decisions now rather than waiting for final state action.

At a March board meeting, Dr. Craft, presenter for the meeting, told trustees that House Bill 2 and other school-finance proposals are moving through the House and that the district should not rely on a $1,300-per-student increase to the basic allotment becoming law. “We will not receive $1,300,” Dr. Craft said. He and staff asked the board to plan for a range of possible state outcomes while preserving a fund balance to buffer unknowns.

The issue matters because state action will determine how much new revenue districts can expect next year and therefore how much Northside must cut or can preserve for classroom programs. Administration said the comptroller has signaled roughly $24 billion in available capacity within state spending limits, and that House members have discussed directing about $8.2 billion of new revenue toward public education. At the same time, trustees were told the proposal known as House Bill 3 (an education savings account or ESA proposal) would provide about $1 billion in vouchers under a tiered priority system; testimony on that bill, officials said, was strongly opposed in committee sessions.

District staff gave trustees a range of likely outcomes rather than a single figure. Meghan Bradley, deputy superintendent for business and finance, said the district is preparing multiple revenue “runs” and that the board should expect to plan for reductions if only partial state funding arrives. Dr. Craft said that, while $1,300 would be preferable to cover inflationary pressure and staffing needs, he did not consider it a realistic outcome; he said a more likely additional base range the district might see could be closer to $550–$600 per student, though exact figures remain uncertain.

Officials emphasized that how new state dollars are allocated matters. Some proposals would direct increased funding to specific allotments — for bilingual programs, teacher compensation, librarians, counselors and nurses — rather than solely to the basic allotment. That distribution could produce different revenue impacts for Northside because allotments are weighted by average daily attendance and other factors. Administration also noted possible state changes tied to open-enrollment or transferability bills and to Chapter 37 (school discipline) that could affect operations.

The board was told to expect further movement in the coming weeks as House and Senate language gets reconciled. Dr. Craft urged trustees to proceed with budget planning assuming partial state support and to maintain some of the district’s designated contingency funds to cover short-term fiscal shocks.

Looking ahead, staff said they will continue to run models and revise revenue projections as bills move through committee and conference processes, and will brief the board again before adopting the fiscal 2026 budget. The district also plans to track committee testimony and suggested the board or district lobbyists will continue to monitor and engage on specific bill language as it develops.

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