Schools across the San Antonio area are searching for ways to slim down and cut costs as they prepare for one of the most challenging budget planning periods in recent history — marked by the loss of federal pandemic funding, declining enrollment and no new state funding.
These decisions are pivotal, as district administrators and school boards weigh their budgetary requirements against the ongoing work to help students recover from the disruption caused by the pandemic.
But the stakes are even higher at the two local districts under the direction of state-appointed conservators, who hold wide-ranging power to override or direct the actions of board members and district leaders.
In those districts, adopting a balanced budget could determine the future of how the districts are governed and whether they remain under local control.
Here’s an update on the Texas Education Agency oversight efforts underway across San Antonio schools:
South San behind schedule
The South San Antonio Independent School District entered a settlement with the TEA in October of last year in which they agreed to resolve issues related to finance and governance within one year, with the appointment of a conservator to guide that process.
If the board does not meet the agency’s goals within the year, South San trustees will be ousted and replaced by a board of managers, according to a letter from the TEA to the district reviewed by the San Antonio Report. By accepting the terms, board members waived their right to appeal further sanctions.
Now, six months into the process, conservator Abe Saavedra worries that despite the board’s noticeable efforts, not enough progress is being made.
“They’re behind schedule,” Saavedra said Thursday. “I’m not saying that they cannot, … but they would have to really, really make things happen in the next six months to meet all the requirements.”
The budget crisis the district now finds itself in began years ago, when the board, over the objection of a former superintendent, voted to open several schools previously closed due to low enrollment, at significant cost.
In two separate votes, the board reversed that decision.
As the district’s budget deficit soared past $9 million, board members decided to close the schools again. Clashes over the decision were often dramatic, with one meeting ending with a board member being escorted out of the building by district police.
To further address the deficit, the district declared a financial exigency at the beginning of 2024, allowing the superintendent to enact layoffs in the future.
“While things have financially gotten better for them, they are still in a deficit,” Saavedra said. “Right now, I have not seen anything that tells me they will be able to adopt a balanced budget by next fiscal year.”
Tony Kingman, the district’s chief financial officer, is expected to detail which cuts are required in order to achieve a balanced budget next year at a March board meeting.
Balanced budget required in Harlandale
The financial outlook has also increased the length of state oversight of the Harlandale Independent School District, which has been under the control of a conservator since 2020.
The appointment followed an investigation into the district, which found that Harlandale’s board of trustees failed to monitor district finances, acted individually on behalf of the board and violated the Texas Open Meetings Act through group text messages among board members.
Last year, the conservator, Judy Castleberry, told The Report that the district was making progress, adding that she expected to be able to recommend her departure in December 2023. But as budget planning got underway, the early signs of the fiscal reality became apparent, she said.
“After the budget was approved, we realized the extent of the financial situation,” she said this week. “That’s what drove the extension.”
The new target date is June 2024.
As long as the board is moving in the right direction, Castleberry said she would recommend to the TEA that she enter an “observation phase” which would ensure continued compliance with a complete departure in the following three to six months.
Among other requirements, Castleberry said the district must cut their deficit by $10 million and balance the budget.
Like South San, Harlandale ISD closed several campuses in recent years to reduce spending. Other districts in the region are downsizing programs and eliminating jobs in addition to closing schools as they plan for a tough financial break.
Guided by the board’s strategic plan, Castleberry said large cuts necessary to reach that goal will likely occur early in the process.
“One goal is that the district has stable and compliant financial management,” she said. “I think the board understands what has to be done in order to keep the district financially solvent, so they’re on track.”
The Texas Education Commissioner has the final authority on which sanctions are lifted or extended, Castleberry said. Board members must also refrain from attempting to influence administrative decision-making and spend at least 35% of board meeting time on student outcomes to receive the recommendation, she added.
Southside ISD loses conservator
The role of conservators like Castleberry and Saavedra is to oversee the operations of the district. They have the power to direct the action of a campus principal, superintendent, or board of trustees, according to the Texas Education Agency’s website.
Other oversight actions the state can take include installing a board of managers, which replaces the elected board of trustees in extreme cases following investigations. That was the case in the Southside Independent School District in 2017, after a TEA investigation found severe governance issues.
TEA sanctions remained in place for years, with local control being phased in, while a conservator remained present to ensure compliance with the law.
That final sanction was removed at the end of February when TEA’s Deputy Commissioner of Governance, Steve Lechelop, notified district officials in a letter that they would no longer be under the conservator’s control.
According to the letter, which was obtained by the San Antonio Report, the decision to remove the conservator was made as part of a quarterly review that found that the district had made “sustainable improvement … in the area of governance.”
District Superintendent Rolando Ramirez appeared on TV after receiving the letter. He said he was excited about the district’s next steps and added, “the sky is the limit here at Southside.”
