Northside projects $60 million FY26 shortfall; board weighing reserves and cuts as state alters school‑finance rules

Northside ISD Superintendent Dr. Kraft and finance staff told the school board that the district is projecting a roughly $60,000,000 general‑fund deficit for fiscal 2026 and a larger shortfall over the two‑year budget window unless the district adopts additional reductions or the state provides more funding.

The presentation to trustees focused on how a committee substitute of House Bill 2 and related legislation would alter state aid formulas and create new, narrowly‑targeted allotments. Megan, finance staff, summarized the package the Legislature circulated: a new fixed‑cost allotment of roughly $1.3 billion statewide and a teacher‑compensation increase that, for districts with 5,000 or more students, provides $2,500 for teachers with three to five years’ experience and $5,000 for teachers with five or more years of experience. The Legislature…