HOUSTON – Spring Branch ISD officials say a recent change by the TEA has left the district with millions less in state funding than expected, prompting concerns about future budget cuts and even discussion of possible legal action.
During a school board meeting Monday night, district leaders said Spring Branch ISD received funding from House Bill 2, the school finance package approved by lawmakers this year. However, officials said in May there was a change to a TEA funding formula, reducing the amount of money the district anticipated receiving.
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According to district administrators, the change resulted in a $9.6 million loss in expected revenue for the current fiscal year.
The issue has also surfaced at the state level. During a public committee hearing before the Texas Legislature, TEA officials acknowledged that Houston ISD could lose approximately $17 million under the revised formula.
Since that hearing, KPRC 2 News has repeatedly requested clarification from the agency regarding the funding changes and how districts were impacted but has not received additional details.
Spring Branch ISD’s Vice Superintendent Christine Porter told board members that had district leaders known sooner about the reduction in state funding, they may have taken additional steps to address the budget shortfall.
“If I had known that we were going to receive less state revenue, I would have encouraged that we needed to make additional cuts this year,” Porter said. “Which would have helped start the process so that moving forward we’d be in a little bit better spot.”
Porter said the district is now expected to continue drawing down its fund balance to cover expenses.
“We are now expected to continue to drop fund balance and bring our fund balance now down to 14% as a percent of expenditures,” Porter said. “This use of fund balance continues to still be an unfortunate effect of the state mandating specific spending and truly not recognizing the inflationary pressures that school districts continue to have.”
According to Porter, only seven school districts statewide were affected by the funding adjustment. She said Spring Branch ISD and Houston ISD account for the vast majority of the losses.
The funding loss drew sharp criticism from school board members.
Board President Courtney Anderson questioned how the situation would be viewed if a school district had made a similar financial error.
“If we were to make a nine million dollar mistake, can you imagine the headlines?” Anderson said. “Can you imagine what they would say about school districts and finance?”
Anderson warned that continued financial pressures could ultimately affect district staffing.
“At some point we’re having to cut payroll, which to anybody who doesn’t understand that means people,” Anderson said. “People in the district, people that work with our children day in and day out.”
Superintendent Dr. Jennifer Blaine said the district has faced similar challenges before.
“It’s the same song, second verse. It’s happening again,” Blaine said. “We found ourselves in the same position in 2014.”
Despite the financial strain, Blaine said the district has continued to make academic progress.
“We’ve made incredible academic gains on a shoestring budget,” Blaine said. “We don’t hardly have anybody left helping these teachers in these schools. It is very skeletal staff.”
The frustration expressed during the meeting led one trustee to suggest the district could explore legal options.
Board member Ted Tredennick said school districts have legal avenues available if they believe state funding practices are unfair.
“We do have legal recourse,” Tredennick said. “School districts can take legal action to enforce what we perceive are unfair tax or revenue practices by the state or TEA. And so that might be something that we consider.”
Anderson later compared the state’s expectations for public schools to an uphill battle.
“It’s like they tie both hands behind our back and then push us down a hill and say, ‘Go, why aren’t you doing better?’” Anderson said. “If they really want to see public education successful, they would come to Spring Branch.”
The board said they will form a community budget committee to look at all ways to cut costs.