HOUSTON — The Houston Independent School district is conceding defeat in its $4.4 billion bond proposal on the Nov. 5 ballot.
Voters were deciding on the bond broken up into two propositions -- Prop A and Prop B.
Proposition A asks voters to approve the issuance of $3.96 billion in bonds to address critical infrastructure needs in the district.
Then there is Proposition B which would have upgraded the district’s technology infrastructure. Prop. B would issue $440 million to fund technology improvements across HISD schools.
HISD Superintendent Mike Miles sent out a letter Tuesday night conceding defeat and he spoke with KHOU 11 News Wednesday morning.
“I think some people conflated politics with putting kids first,” Miles told KHOU 11 News. “I think they they're thinking about, the intervention instead of what do our kids need? And the kids need these facilities.”
Miles said without the bond the district will still do what they can to provide upgrades.
“We'll go out for grants. We'll go to try to get some more money from the Legislature. but it won't make up for $4.4 billion worth of need that our schools have,” he said.
We spoke with multiple experts who explained why the bond may not have passed.
“There's no nexus...no connection with the community among board members,” Orlando Sanchez, former Harris County treasurer, said. “Obviously, Mr. Miles isn't well loved although I recognize he has a tough position....and it was a rather robust bond issue which most people realize is going to raise my property taxes.”
One expert we spoke with said the bond did not gain much support from either party.
“You can't win a bond election if you've got both parties mad at you,” KHOU 11 political analyst Brandon Rottinghaus said. “The problem for Democrats is that they didn't have the consensus to fix the schools that they wanted in the way they wanted. The problem for Republicans was that they just don't trust the system to work the way it should, and they don't like extra taxes from these bonds.”
He added that the result of these propositions not passing is somewhat of a rebuke towards Gov. Greg Abbott.
“This is the cornerstone of his strategy to try to change failing schools since the voters turned it down. It may be a kind of harbinger of things to come in terms of what happens when a school district gets taken over,” Rottinghaus said.
Below is a letter HISD Superintendent Mike Miles sent out Tuesday, acknowledging that the bond proposal was going to fail.
"As you know, HISD voters did not vote to approve the bond proposal.
As the results came in on Tuesday, I kept thinking about a conversation I had with the Principal at Bonham Elementary School last week. She relayed how hopeful her community was – parents and staff – that the bond would pass. Their crumbling temporary buildings would finally be replaced with a safer, more appropriate facility. Bonham serves some of the highest need students in our community. They’re doing the hard work to improve instruction, and we as a community let them down.
For other families with students in crumbling buildings, I don’t need to tell you how badly we needed this bond. These investments should have been made years ago. In fact, we had not planned to advance a bond at all, but once we saw for ourselves the unspeakable conditions at many schools, it became obvious we could not fully transform this District without tackling our failing facilities.
In this instance, the politics of adults beat out the needs of our children. It’s unfortunate and wrong, but I want to assure you that it will not limit our ability to do the things that our students need. I know our most effective principals and teachers can reach students even in the worst of facilities, because they’ve been doing so for more than a year. Teaching and learning will continue, and we will continue to transform this District for all students.
I cannot promise our aging facilities and systems will never be a barrier to student learning. We will do our best to keep long expired heating and cooling systems running, but on very hot or very cold days, we are likely going to have to close campuses to keep students safe. More frequently, students are going to be forced to learn in conditions that are not ideal, in classrooms that are either too hot or too cold to learn comfortably.
Keeping schools safe will remain our top priority. The HISD Police Department and our Facilities and Maintenance Operations team is constantly searching for grant money, and we will be looking to the State of Texas to provide additional resources for school security. We will make these investments as soon as funds become available.
I will acknowledge, I was very optimistic about this bond proposal. There was a window of time before the board vote when we could have done what prior elected boards and administrations have done – which is to avoid hard choices and hope the future would take care of itself. We chose to go forward, because the conditions in our schools made it obvious – our kids cannot wait.
I believed this bond was a unique opportunity for this community to come together on behalf of its children. I’m sure many of you felt the same and are very disappointed in the result. I share your disappointment, but I also hope you will remain optimistic. Our accomplishments far outweigh our setbacks, and most importantly, we have and will continue to put the needs of our students first."
Superintendent Miles' message in Spanish
"Estimada comunidad de HISD:
Como saben, los votantes de HISD no votaron a favor de aprobar la propuesta de Bonos.
A medida que se daban a conocer los resultados el martes, yo no dejaba de pensar en una conversación que tuve con la directora de la Escuela Primaria Bonham la semana pasada. Ella me transmitió la esperanza que tenía su comunidad, tanto los padres como el personal, de que la propuesta sería aprobada. Sus deteriorados edificios temporales finalmente serían reemplazados por instalaciones más seguras y apropiadas. A Bonham asisten algunos de los estudiantes más necesitados de nuestra comunidad. Están haciendo un gran esfuerzo para mejorar la instrucción, y nosotros, como comunidad, los hemos decepcionado.
En cuanto a otras familias con estudiantes en edificios deteriorados, no necesito decirles cuánto necesitábamos este Programa de Bonos. Estas inversiones deberían haberse hecho hace años. Es más, no habíamos planeado proponer Bonos en absoluto, pero una vez que vimos nosotros mismos el estado indescriptible de muchas escuelas, fue obvio que no podíamos transformar completamente al Distrito sin abordar estas instalaciones.
Sin embargo, en este caso la política de los adultos superó las necesidades de los niños. Es lamentable y está mal, pero les aseguro que esto no limitará nuestra capacidad de hacer lo que nuestros estudiantes necesitan. Sé que nuestros directores y maestros más eficaces pueden servir a los estudiantes incluso en las peores instalaciones, porque lo han estado haciendo durante más de un año. La enseñanza y el aprendizaje continuarán, y seguiremos transformando al Distrito para todos los estudiantes.
No puedo prometer que nuestros sistemas e instalaciones envejecidos nunca serán una barrera para el aprendizaje estudiantil. Haremos todo lo posible para mantener en funcionamiento los sistemas de calefacción y aire acondicionado caducados desde hace ya mucho tiempo, pero en días muy calurosos o muy fríos es probable que tengamos que cerrar escuelas para proteger a los estudiantes. Cada vez con mayor frecuencia, los estudiantes se verán obligados a aprender en condiciones menos que ideales, en aulas demasiado calurosas o demasiado frías para aprender cómodamente en ellas.
Mantener las escuelas en condiciones seguras seguirá siendo nuestra principal prioridad. El Departamento de Policía de HISD y nuestro equipo de Operaciones de Instalaciones y Mantenimiento constantemente buscan fondos de subvenciones, y acudiremos al estado de Texas para que proporcione recursos adicionales para la seguridad escolar. Realizaremos estas inversiones tan pronto como los fondos estén a nuestro alcance.
Reconozco que era muy optimista en cuanto a esta propuesta de Bonos. Hubo un periodo antes de la votación de la Junta en el que podríamos haber hecho lo que han hecho anteriormente las juntas y administraciones elegidas, que es evitar las decisiones difíciles y esperar que el futuro se resuelva solo. Elegimos avanzar porque las condiciones en nuestras escuelas indicaban que era obvio hacerlo: nuestros hijos no pueden esperar.
Yo estaba convencido de que este Programa de Bonos era una oportunidad única para que la comunidad se uniera en nombre de sus hijos. Estoy seguro de que muchos de ustedes sintieron lo mismo y estarán muy decepcionados con el resultado. Comparto su decepción, pero también espero que sigan siendo optimistas. Nuestros logros superan con creces nuestros reveses y, lo que es más importante, hemos puesto y continuaremos poniendo las necesidades de nuestros estudiantes por encima de todo."
Below is what Prop A and Prop B would have covered.
What is Proposition A on the HISD bond election?
Proposition A proposes the issuance of $3.96 billion in bonds to fund several projects within the HISD, including:
- Construction of new school buildings to accommodate growing student enrollment
- Renovation and expansion of existing schools to update facilities that may be outdated or in need of repair
- Safety and security upgrades for school buildings
- Purchase of land for future school sites
The bond is aimed at improving the district’s infrastructure, expanding capacity, and modernizing safety systems.
What will the bond cost?
The financial commitment associated with this bond is significant. If Proposition A is approved, HISD will borrow $3.96 billion.
The estimated interest on this debt is projected to be $4.43 billion, bringing the total repayment amount, which is the principal plus interest, to $8.39 billion over the life of the bond. This repayment period is expected to span 30 years, with bond issuances spread over four years, from 2025 to 2028.
What is Proposition B on the HISD bond election?
Proposition B would authorize the district to issue $440 million in bonds to fund:
- Technology equipment and systems for students and teachers, including updated devices, software, and digital learning tools
- Technology infrastructure improvements, such as better network connectivity, cybersecurity measures, and system enhancements
- Instructional technology upgrades, ensuring classrooms are equipped with modern tools for digital learning, including computers, tablets, and smart boards
Search for campuses to see what the bond will do
The information for the search above comes form the bond proposal below.
What will the bond cost?
If Proposition B is approved, the district would borrow $440 million, with an estimated interest cost of $89.4 million. This would bring the total repayment to $529.4 million over the life of the bonds.
Current debt obligations of HISD
HISD currently has $1.77 billion in outstanding debt, with $664 million in remaining interest payments. If Proposition A and B are approved, this would add to the district’s total debt, bringing the total amount to be repaid, including outstanding obligations, to $10.9 billion.
Will there be a property tax increase?
Though the ballot will state “THIS IS A PROPERTY TAX INCREASE,” HISD said they don't anticipate needing to raise the tax rate to repay the bond.
Based on current projections, the district estimates that the maximum annual increase in taxes on a home valued at $100,000 will be $0.00. However, this assumes several factors remain constant, including the projected increase in property values and interest rates.
The assumptions that inform this estimate include:
- Appraised property values are expected to increase by 0.64% in 2025 and by 1.00% annually thereafter
- The district anticipates issuing bonds with an interest rate of 5.50%.
- The bond repayment will occur over a 30-year term, with four separate bond issuances
- The state-mandated homestead exemption for primary residences, which reduces the taxable value by $100,000, applies in this case
While HISD does not foresee an immediate tax rate hike, any significant changes in market conditions or lower-than-expected property value growth could lead to an adjustment in the tax rate in future years.
What will the funding be spent on?
Here is a broad breakdown of how the $4.4 billion investment will be spent. HISD broke it down into three main buckets: Safe and healthy schools, future ready and restoring Houston’s schools.
Safe and healthy schools
The estimated total for this investment is $1.04 billion:
- $384.16 million for security upgrades at 263 campuses and 25 non-campus facilities
- $2.15 million for HISD police upgrades
- $508.34 million for HVAC upgrades at 100 campuses
- $149.62 million for lead abatement at 134 campuses
Future ready
The estimated total for this investment is $1.07 billion:
- $375 million for three new CTE centers in the North, South and West divisions
- $50 million for the renovation of the Barbara Jordan Career Center
- $200 million for the pre-K expansion with 4,000 new seats
- $445 million for district-wide technology and IT upgrades
Restoring Houston schools
The estimated total for this investment is $2.29 billion:
- This is for 43 individual school investments to address urgent facility needs
Here is the full breakdown of how the money will be spent at each HISD campus: