HISD reveals plan to overcome operational challenges in recent report

A new report from Houston ISD superintendent Mike Miles points to a culture of inefficiency, that he says is costing the district millions and millions of dollars. The Texas Education Agency took over control of HISD last year, to improve school performance and address allegations of school board misconduct. As the appointed superintendent, Miles has been busy, and this report is the latest effort to find ways the district can work more efficiently.

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At a presentation at HISD headquarters, Miles was publicly confident after his team spent months examining policies and practices that drive the state's largest school district. He says there's lots to fix, "I wasn't totally surprised, but there was some level of, 'Wow, this is worse than a typical urban district'."

The report details eight different areas, primarily directed at the district's central office, that find an inefficient bureaucracy that cost time and money. Miles says there is a pattern of wasteful spending, including $20 million on school busses the district didn't need; $139 million, from now-expired COVID funding, for staff salaries; millions for private contract work that can be performed by existing staff.

During discussions about the report, HISD officials emphasized the need for cautious interpretation. "Don’t go buying property off this information," Superintendent Mike Miles said.

Additionally, the report finds little oversight over staff performance and attendance, and slow recruiting. "That's not a person problem; that's not an individual problem," says Miles, "That is a system that is not geared toward looking at metrics and assigning goals that are smart goals, achievement goals, or outcomes for the use of funds."

When Miles was appointed by the state, he says the district faced a fiscal cliff that would leave less than a half-billion dollars in state-mandated financial reserves. Avoiding that is a top priority, along with reforming the district's performance. He cannot say 'how much' will be saved with this round of changes. "We will save enough money to pay for the reforms that we need to put into place," he says.

The report details a variety of strategies that are designed to make those eight areas more efficient. Some are procedural, while others may cost jobs. In the meantime, Superintendent Miles says the district's next budget, to be presented in May, will leave an $850 million fund balance that is well above the fiscal cliff he faced when he got here.

"There are so many HISD employees who are working hard and have been for a long time. We really appreciate their efforts," said HISD School Board Member Ric Campo. "But when there is serious dysfunction in the system itself – when policies are not consistently enforced, when there is no accountability when decisions are not tied to what educators are here to do – this erodes morale and affects everyone’s ability to do their best work for kids.

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HISD acknowledges that addressing these challenges is crucial for improving student outcomes and achieving educational goals.

"The transformation taking place in HISD is the nation’s largest and most significant effort to dramatically improve K-12 education," said Miles. "Too many of our Houston students are not achieving what we know they are capable of. That’s why we’re making big changes – with urgency – to raise the quality of instruction and ensure our kids catch up in their learning, develop the skills they need for the future world, and graduate ready to succeed in college, work, and life.

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To tackle these issues, HISD has initiated systemic changes. This includes implementing a new action planning and budgeting process to align spending with priorities and goals, promoting collaboration among departments, and enhancing accountability. Efforts are also underway to evaluate the necessity of vendor services and strengthen internal systems through regulations, processes, and technology.