Texas school districts impacted by budget shortfalls despite passing of HB 2

Texas school districts impacted by budget shortfalls

Schools across Central Texas are being impacted by budget shortfalls, despite House Bill 2 being signed earlier this month.

CENTRAL TEXAS - Schools across Central Texas are being impacted by budget shortfalls, despite House Bill 2 being signed earlier this month.

The Leander ISD Board of Trustees will soon decide whether it’s best for their district to close three elementary schools.

Leander ISD speaks on possible changes

The backstory:

The next school year, 2026-2027, could look different for Leander ISD students and staff.

"In August 2025, in a couple of months, all the doors of all of our campuses are going to open up in the same way that they did this previous school year," Leander ISD Chief Operating Officer Jeremy Trimble said.

Leander ISD is facing about a $34 million deficit because of reduced funding from the state, inflation, and slowed enrollment in the southern and central parts of the district.

Leander ISD speaks on school choice, funding

The Leander ISD superintendent spoke about the Texas House approving the school choice bill and the bill for more funding to school districts.

"Change has to happen, we just don’t know what form of change is going to look like," Trimble said.

Three different options have been presented to the Board of Trustees for consideration:

Consolidate Fabian Elementary with Westside, Fabian would then be repurposed to the New Hope High School Alternative Program, Cypress Elementary would consolidate with Naumann Elementary, Cypress would be repurposed to a police department, administration services, and professional development building, Steiner Ranch Elementary would consolidate to Laura Bush and River Ridge Elementaries, and Steiner Ranch would turn into a pre-k program.
Would keep all the elementary schools open but reduce staff
Gives the board of trustees flexibility to make a plan that involves a little bit from both 1 and 2

With regard to option one, Trimble said: "Then those enrollments would be stabilized at around seven, I think around between 600–700 students, so still under capacity."

Many parents have expressed their opposition to option one.

"School is more than just numbers, like a church, school symbolizes family and community," a Steiner Ranch Elementary School parent said during the June 5 board meeting.

"Repurposing this campus would shatter the heart of our community, displace hundreds of children who specifically chose to reside here for Cypress and forever alter the community that at its core beats because of this school," a former Cypress Elementary School parent said during the June 5 board meeting.

What's next:

Trimble said no decision has been made yet, but one will need to be made in September.

Other Central Texas districts impacted

AISD offers money to seasoned teachers

Austin ISD is offering money to seasoned teachers to come to failing schools in the district and help "turn them around." This is an effort to avoid a take over by the Texas Education Agency

Dig deeper:

Earlier this month, Governor Greg Abbott signed into law House Bill 2, a landmark investment bringing $8.5 billion in new public education funding to Texas, but for Leander ISD, Trimble said it does have a negative impact.

"There's a hold harmless that actually wasn't carried forward and so that impacted Leander ISD by about $10.6 million and so, ultimately, we've got another $1.5 million that we're faced with right now that we are going to have to try to find some reductions," Trimble said.

Other schools in Central Texas are looking for reductions as well.

On Wednesday, Austin ISD’s superintendent announced a 20% reduction of their central office staff to help shrink the district’s $93 million deficit.

"So many parts of Texas are having to go through this right now, this is not unique to us," Trimble said.

The Source: Information from interviews conducted by FOX 7 Austin's Meredith Aldis

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