DISD Braces for Big Cut in School Funding (TX)

December 9, 2010

Dallas ISD Superintendent Michael Hinojosa said Wednesday that the district is bracing for the Texas Legislature to cut $4 billion in school funding over the next two years to reduce the state’s multibillion-dollar deficit.

In a meeting with members of The Dallas Morning News editorial board, Hinojosa said a reduction that high could cost the district between $67 million and $132 million annually. That’s between 5 percent and 10 percent of Dallas ISD’s budget.

"That is huge," Hinojosa said.

Educators across the state have said they believe it’s likely the Legislature will cut educatio n funding, which represents about 40 percent of the state’s budget. Gov. Rick Perry said the state faces about a $10 billion deficit, but others have projected one as high as $25 billion.

The state is expected to announce the actual deficit in the coming weeks.

Dallas ISD’s consultants in Austin have informed the district that there are three possible ways the state might go about reducing education funding.

•If the state cuts all school districts using an across-the-board percentage, Dallas ISD could lose $67 million.

•If the state decides to make cut decisions based on how much school districts spend per student, Dallas officials figure they could lose $132 million.

•A third option, basing cut decisions on districts’ property wealth, could land DISD’s loss somewhere between the high and low estimates.

Hinojosa said the district could tap into the reserve fund, which sits at about $80 million, to help offset a shortfall. But the district has spent a couple of years replenishing it from a low of $37 million in 2008.

"There are certain things we can do to reduce that kind of money," Hinojosa said, "and they are all painful."