Houston’s public school system is bracing for massive budget cuts from the state’s looming multi-billion-dollar budget shortfall and the cut off of millions of dollars in federal stimulus cash, the school district’s top financial officer said Thursday.
“The cuts could range from $70 million to $163 million” over two years, said Melinda Garrett, the Houston Independent School District’s chief financial officer. “It all depends on what formula is used.”
By those estimates, the school district, which educates more than 200,000 children, could receive $35 million-$81.5 million less in state funding next year alone.
Everything will be on the table when it comes time to make cuts, Garrett told HISD trustees, including individual school funding, central staffing and police and transportation. She promised to provide trustees budget updates at least once a month.
The amount of money the school system gets from the state is determined by a formula outlined by the Texas Legislature every two years. Funding for the 2011-12 and 2012-13 school years will be determined during the next legislative session, which begins in January.
The Houston school district is required by law to adopt a budget by June 30, 2011, Garrett said -- but the legislature probably won’t adopt a school funding formula until after June 30.
“We are going to have to prepare the budget to anticipate the shortfalls,” Garrett said. “It could (mean) adopting a budget and going back to amend it.”
Garrett and the rest of HISD are not completely in the dark, though. According to her presentation, the district is sure about a few things:
- The state budget shortfall is estimated to be between $11-$25 billion.
- A portion of HISD’s budget is being bankrolled by federal stimulus funds, which will be gone be the end of 2011. (Earlier Thursday, the trustees agreed to use stimulus money to pay for the bulk of the district’s 2011 summer school costs.)
- Health insurance costs for school employees will require a budget increase in 2011-12.
- HISD expects cuts to Texas Education Agency grant programs as those funds are used to balance the state budget.
Texas Watchdog will be following the budget process in HISD, and we want to hear what you think about how the district is spending money. Contact Lynn Walsh at Lynn@TexasWatchdog.org or on Twitter @LWalsh.
Saw picture by flickr user KaCey97007, used under a Creative Commons license.
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