A financial crisis is looming over many Texas school districts, with some on the brink of fiscal insolvency. Immediate action is needed to prevent potentially devastating consequences.
Debates over state funding and declining enrollments often dominate discussions, yet there’s another core issue rarely addressed: the elected trustees tasked with managing multi-million- dollar budgets often lack the necessary training to prevent financial collapse.
• Across Texas, the numbers paint a grim picture:
• Houston ISD: $211 million deficit
• Dallas ISD: $187 million
• Fort Worth ISD: $17 million
• El Paso ISD: $12 million After nearly 30 years in public education, I know trustees who are good-hearted community members dedicated to improving education. However, most are not finance experts. Elected to protect the interests of students, families, teachers, and taxpayers, they often miss financial warning signs hidden in the spreadsheets they review. Lacking training, many trustees end up approving budgets without asking critical questions, leading their districts toward insolvency.
The Texas Association of School Boards (TASB), which typically trains trustees, has fallen short in equipping them to handle school finance complexities. TASB’s response to the crisis has been to blame state and federal funding rather than to provide practical solutions for managing finances.
Texans for Excellence in Education (TEE) aims to fill this gap with its program, School Finance Connect. Unlike TASB, our program offers trustees in-depth training on budgeting, recognizing fiscal challenges, and protecting their district’s financial stability.
How are trustees misinformed? Here are a few examples:
• Trustees often overlook cost-saving options for insurance and energy, assuming TASB's offerings are the only choice.
• They are asked to approve large bond packages that max out tax rates, lacking the skills to analyze long-term debt implications.
• Trustees rarely receive 3- to 5-year financial projections. If presented with a deficit budget, they should also be shown a plan to address it. Trustees need training on examining revenue variances, payroll ratios, and oversight of outside contracts.
Without stronger financial oversight, districts face tough choices— cutting programs, laying off teachers, or raising taxes. Trustees must become financial watchdogs to avoid these outcomes.
School Finance Connect by TEE provides comprehensive training in school finance, from budget forecasting to evaluating long-term sustainability. Our consulting services offer trustees a realistic view of their district’s current finances, helping them plan for future financial health.
Texas trustees are committed local citizens who care about their schools. With the right tools, they can become empowered decision-makers and protect their districts from financial collapse.
John Petree is the President of Texans for Excellence in Education (TEE), a nonprofit organization dedicated to providing Texas school boards with essential training, consulting, and policy advising. A near 30-year veteran of K-12 administration, Petree has served in various roles, including teacher, principal, Chief Academic Officer, and Chief Financial Officer.
