2026 Budget Decisions

Hays CISD Joins Public School Districts Across the State in Making Budget Reductions

On Thursday, March 26, 2026, Hays Consolidated Independent School District joined a growing list of public school districts across Texas that have announced significant, proposed budget reductions for the upcoming 2026-2027 school year. In Hays CISD, a still fast-growing district, the cuts are necessary to replenish the district's fund balance, or savings account, which is at a critically low level because of the combination of record inflation and no increases in the basic student funding allotment from the state between 2019 and 2025. This account is used throughout the year to ensure the district has adequate funding to make payroll and cover additional large expenses.

While the 89th Texas Legislature did increase the basic student allotment funding by $55 from $6,160 per student in attendance at public school 100% of the school year to $6,215 per student; the less-than-one-percent increase in the basic student allotment was well short of the needed $1,000, or more, increase per student to cover the costs of post-pandemic inflation.

Texas currently generates money to pay for public schools through property taxes on homes, businesses, and other real estate. Though public school district taxes are listed as line items on property tax bills, the money is not guaranteed to go to the local public school district. Public school districts are funded for operational expenses based on the number of students enrolled in the district and the average daily attendance of those students. Public school districts that generate more operational revenue through local property taxes than the state formula allows must send the difference to the state.

This is a Funding-Driven Predicament; Hays CISD Spending Remains Frugal

For the past seven years, the state's basic public education funding did not keep pace with inflation.  Hays CISD leadership has focused on preserving the services offered to students by recruiting and retaining the best teachers and staff in the state, as well as protecting the outstanding experience families expect from the district. The district achieved this by not adding much-needed additional staff positions commensurate with significant student growth, and by using fund balance savings to offset the need to make significant budget cuts.

The district waited and hoped for funding relief from the state, but it did not materialize in a manner that would allow the district to avoid significant budget cuts.  

Links to District Budget Cut General Communication

Read the Superintendent's Budget Email
Read the District's Budget News Release
Hays CISD Business & Finance Webpage

District Budget in the News

Community Impact General Article (published March 20, 2026)
KXAN Budget Cut Preview Story - The Why (aired March 25, 2026)

Current Spending

This chart shows where current money is allocated in Hays CISD. The largest part of district spending is applied directly to instructional services. And, overwhelmingly, nearly 90% of the entire budget is in staff salaries and personnel costs. Because of this, it's impossible to make the significant, necessary budget cuts without affecting jobs, and to a lesser degree, direct instruction.

Click chart below, or use this link, to enlarge.

2026 Proposed Budget Reductions

The district has proposed the following total $12.25 million in budget reductions beginning with the 2026-2027 school year. The reduction package includes cutting or changing 125 positions (out of a grand total of 3,600 employees who work for Hays CISD) through attrition, reclassification of job duties, reassignments of some employees, reductions in the number of work days, and layoffs; and, suspending certain stipends currently paid to an additional 970 employees. The district will attempt to aide employees who have been displaced from their jobs by limiting select current and future job opening to internal candidates only.

Printable Table of Proposed Budget Cuts

Additional Measures to Offset Future Potential Budget Cuts

Delay New School Openings

Delays the opening of the district’s 4th comprehensive high school by one year to 2030 allowing additional time to build in the budget the necessary new school opening operating costs. (Campus construction approved by voters in the May 2025 bond).

Delays the planned opening of the district’s 7th middle school by one year to 2030 allowing additional time to build in the budget the necessary new school opening operating costs (Design fees for the school approved by voters in the May 2025 bond. Construction costs would still need voter approval in a future bond measure).

Increase Facility Rental Fees

Increases school facility rental fees beginning in 2026-2027 by 5% to generate revenue to offset inflation costs associated with district facility usage (electricity, custodial staff, and other costs).

Sale of District Land

Sells select parcels of district land to generate revenue. 

Creation of a Hays CISD Virtual School Program

Creates a virtual school program in Hays CISD beginning as early as 2026-2027 to increase student enrollment and thus generate additional state funding.

Continued Student Growth

Additional revenue from the state would accompany increased student enrollment in the district (less costs to provide basic educational services).

Potential Additional State Funding

Should the legislature increase its per-student basic education funding allotment in future legislative sessions, the additional revenue would be helpful to the district.

Voter-Approved Tax Rate Elections

If necessary, the district could seek a small tax rate increase to generate additional funding by asking voters to approve a tax rate above that which the state allots to the district in future fiscal years.

Improved Student Attendance

For every percentage-point increase in the district’s average daily attendance, it results in an additional $1.5 million in revenue. Texas is one of the few states that still funds public education based on attendance instead of enrollment. Hays CISD attendance averages 93.7% annually, which is typical in the post-pandemic era. That means Hays CISD gets 93.7% of funding for the number of students enrolled. However, the district must still pay 100% of all of the costs associated with running schools – from teacher salaries to the electric bill.