HUMBLE, Texas -- A Houston-area school district will be raising money while its buses drive their routes, KPRC Local 2, Your Education Station, reported Wednesday.

The Humble Independent School District partnered with Steep Creek Media to generate revenue by selling advertising space on its school buses and other venues, officials said.

Humble ISD is the first public school district in the area and the second statewide to pursue additional revenues through school bus advertising.

District officials said that facing a budget deficit of more than $17 million that could result in a reduction of staff, and both academic and extracurricular activities, the advertising has an annual potential revenue of more than $1 million.

"We're truly on the verge of insolvency. We're at a place because of the current state funding system," Humble ISD superintendent Guy Sconzo said.

Humble ISD is one of the fastest growing school districts in the state with five new schools under construction.

But three years ago, the legislature froze state funding for schools at the 2006 rate. There is no allowance for increased costs for things such as gasoline, electricity or salaries.

"There are regulations about the type of ads that can go on school buses. You cannot have anything promote things illegal for children -- no cigarettes, no alcohol, no sex, gambling, no ads like that," said Lynn Fields, a former Humble ISD board member.

Four advertisers have already signed up.

The district's 260 buses travel hundreds of miles each week throughout the community.