A version of this story ran in the September / October 2026 issue.
Texas is in a state of fiscal crisis. Or, at least many of its school districts and municipalities are. All across Texas, from the biggest urban ISDs and metros to the smallest towns and exurban counties, local governmental bodies are feeling the increasingly painful fiscal pinch—and resorting to rigid austerity measures.
The state’s 10 largest school districts, from Houston and Dallas to Austin and El Paso—collectively charged with educating a near-majority of Texas public school students—have all projected or enacted budgets that have them in a fiscal deficit. This is driven (in addition to factors like declining enrollment and property values) by an inadequately significant bump to the basic allotment of school funding last legislative session, as that funding has fast been consumed by inflation-fueled cost increases. Many districts across the state have been forced to close numerous neighborhood schools to alleviate the current strain…