Northside leaders say House Bill 2 eases but won’t erase a projected $100 million shortfall

Superintendent Dr. Kraft told the Northside Board of Trustees that the framework of House Bill 2, as passed by the Texas House, improves the district’s budget position but will not close a roughly $100 million shortfall.

“Protect jobs. We want all staff, all teachers, all employees to have jobs,” Dr. Kraft said during his superintendent’s report, adding that the district’s two priorities are protecting positions and preserving program integrity.

The district’s finance staff presented the board with the administration’s current interpretation of the House measure and the likely financial effects. The modeling the district reviewed (House Bill 2 as amended) estimates roughly $53.8 million in combined state and local revenue for Northside ISD under the current draft. Finance staff said approximately $23 million of that increase would flow to special programs and about $30 million would be discretionary in nature, subject to legislative and calculation rules.

Finance staff warned of strings attached. Under the bill’s language discussed on the House floor, about 40% of newly available compensation dollars must be used for educator pay and specified student‑facing staff (teachers, counselors, librarians and nurses); the district estimates that share at roughly $21.7 million in the House model. District staff said the bill’s language prioritizes teachers with five or more years’ experience but that several technical questions remain as the measure moves to the Senate.

Megan, a district finance staff member who presented the models, told trustees that the administration must still reconcile local property tax effects and state aid interplay before producing a final budget. “If local property tax revenue increases, state aid decreases and vice versa,” she said, summarizing the inverse relationship built into the state funding formula.

Dr. Kraft and finance staff cautioned the board that the House bill as approved by the House is not final. It must be reconciled in the Senate and enacted by the governor to be binding. They also noted that many of the bill’s provisions are effectively funded for a two‑year window and that long‑term sustainability will depend on future legislative action and state revenue performance.

District staff outlined the next steps and a revised budget timeline: the administration will continue to run alternative funding scenarios, model required compensation offsets, and bring recommended staffing and program actions to the board in June and July. Final property values, which determine local revenue and state aid offsets, are due in late July; the district will set a public budget adoption and tax‑rate meeting after those values are finalized.

Why it matters: Trustees were repeatedly told the district still faces difficult choices. Dr. Kraft said that even with House Bill 2 funding the district will continue to work on “efficiencies” at campus and central levels and that campuses may need to reconfigure course offerings and extracurricular schedules to match teacher certifications and student course requests.

Looking ahead: The board scheduled continuing budget briefings and a finance committee meeting to review alternative spend and staffing plans. The administration said it will return with concrete compensation proposals once legislative action is final and the district has updated property valuations.