Houston ISD administrators do not expect to cut magnet programs or re-open the magnet application process ahead of the 2018-19 school year, an announcement likely to ease fears among parents who send their children to choice schools.
Houston ISD leaders said Monday they are lowering the district’s projected budget deficit from about $209 million to $115 million, which would dramatically reduce the level of potential staff and program cuts.
The two announcements reflect the shifting nature of Houston ISD’s plans for major changes throughout the district, which have provoked anxiety among many parents and staff members. District leaders are proposing changes to the district’s magnet and funding systems — with the goal of providing more resources and programs to students in lower-income neighborhoods while facing a significant budget deficit largely brought on by the state’s school finance law.
Administrators are considering whether to phase out some magnet programs that have relatively little student interest or no consistent programming throughout a feeder pattern. District leaders want to better align magnets so students follow the same program from elementary through high school.
Administrators do not expect to cut many magnet programs, but any changes would not be made until 2019-20. Chief School Support Officer Mark Smith said the district did not want to rush any reductions that would force parents to immediately seek new options for their children.
When HISD first began budgeting for the 2018-2019 school year, it was in the immediate aftermath of Hurricane Harvey. Using a worst-case scenario, the district’s financial team projected a $208 million deficit based on four dynamic factors: the Local Optional Homestead Exemption (LOHE) lawsuit, a recapture payment to the state, a potential property tax value decreaseand an anticipated student enrollment decline. Taking direction from HISD Board President Rhonda Skillern-Jones, district administrators crafted a revised budget outlook for the 2018-19 school year.
The district’s legal team feels strongly that the state will prevail in the LOHE lawsuit. For HISD, this means a reduction in its recapture payment because the TEA will recognize half of the 20 percent local homestead exemption given to homeowners. A decision in the lawsuit could come after a hearing this spring. A win would reduce HISD’s recapture payment by $51 million.
Under the Texas Education Code, TEA Commissioner Mike Morath has the authority to adjust property values. Based on the damage sustained from Hurricane Harvey and the lasting impact of the storm on our students and staff, we anticipate the commissioner will adjust property values, which in turn, would reduce our recapture payment. Governor Greg Abbott, Lt. Governor Dan Patrick, and other state leaders have publicly stated their support for this action. Click here to review a September 2017 press release from Lt. Governor Dan Patrick that confirms his support for schools districts in Region IV impacted by Hurricane Harvey, which includes HISD. In addition, Commissioner Morath surveyed school districts after the hurricane to gather projections on their property tax collections post-Harvey. HISD estimates a $42 million adjustment for property value loss associated with Hurricane Harvey.
It was prudent to budget under the worst-case assumption, and it makes sense to adjust on the reasonable expectation that he reality is better. HISD still has a big hole to fill, and changes to the magnet programs will be difficult and disruptive, though long overdue. I confess that I haven’t been following all this very closely – sorry, all the election stuff has taken over my brain – but I will get back into it as the process begins.