The fort worth Independent School District (FWISD) is grappling with a substantial financial challenge. The district is projected to face a $49.8 million shortfall in the 2026-27 fiscal year, even after implementing significant cost-cutting measures. This deficit comes amidst a backdrop of declining student enrollment and rising operational costs.
During a recent meeting on April 28, 2026the board of managers heard from Superintendent Peter Licata and other district leaders about the pressing financial issues. The district has already taken steps to reduce the shortfall, including closing campuses, cutting staff, and slashing spending. These efforts have reduced the 2026-26 shortfall to $12.6 millionbut the projected quadrupling of the deficit for the next year is a cause for concern.
Enrollment Decline and Financial Implications
The district’s financial woes are exacerbated by a significant drop in student enrollment. FWISD projects to enroll 63,068 students next year, nearly 6,000 fewer than initially projected over a year ago. This decline directly impacts the district’s funding, as Texas allocates school funds based on attendance. With fewer students, the district receives less state funding, compounding the financial strain.
At the same time, the district’s expenses continue to rise. Factors contributing to the increased costs include teacher pay raisesa new school improvement model for underperforming campuses, and higher operating expenses. The Elevate Networka new school model, accounts for $25.1 million of the district’s budget. This initiative focuses on paying higher salaries for teachers at Elevate schools and investing in new technology, such as updated Chromebooks and interactive screens.
Community Concerns and Budget Transparency
Parents and community members have expressed concerns about the district’s financial management. Sabrina Balla FWISD parent and activist, criticized the lack of transparency surrounding the Elevate Network. She argued that the initiative lacks sufficient data to support its effectiveness and may be driving away qualified educators.
“It is fiscally irresponsible to implement a model that has no real data to support it, a model that is driving away highly qualified educators, a model I believe does real harm to students,” Ball said.
Board Secretary Rosa Maria Berdeja acknowledged the importance of the 5% raises for classroom teachers but inquired about the possibility of providing larger raises for principals and other eligible staff. Superintendent Licata responded by directing staff to find additional funds to increase these raises without dipping into reserves.
Financial Forecast and Future Challenges
Chief Financial Officer Darla Moss emphasized that the projected deficit is a conservative estimate and is likely to be reduced in the coming weeks and throughout the new school year. However, she acknowledged that the district still has significant work to do to rightsize the budget.
“We have work to do, still, to get the deficit and to rightsize our budget,” Moss said.
Superintendent Licata highlighted the district’s ongoing financial challenges, stating that FWISD cannot continue to rely on reserves to cover shortfalls. He noted that the district is maintaining the recommended 90 days of operating funds in reserves for next year but foresees falling below this benchmark in subsequent years if current trends continue.
“We are still spending more money than we get in, which is not a good place to be,” Licata said. “It’s just bad math.”
Board President Pete Geren acknowledged the preliminary budget as an important first step in redirecting the district’s $1 billion budget after taking control in late March. He emphasized the need for continued efforts to address the financial challenges.
“We have a lot of work to do,” Licata said. “This is not something we can fix in 78 days.”