Fort Bend ISD received just $6.6 million in state reimbursement toward the nearly $33 million it projects spending on student transportation in the 2026-27 school year, a KPRC 2 investigation first reported Friday, Oct. 2.

The gap leaves the district covering most of its own bus costs from local funds. That adds to a $32.8 million overall budget shortfall the board of trustees approved 7-0 on June 15. Separately, the district projects a $7.8 million to $12 million revenue loss from the Texas Education Freedom Accounts (TEFA) voucher program.

Chief Financial Officer Kris Lynn said at the board's Monday, Sept. 28 meeting that the district has looked at reductions in transportation routes, utilities and staff levels to match lower student enrollment. Lynn said staff want to cut spending before asking voters for more.

"You'd think if you have a deficit, you need more money and so you would want to increase the tax rate," Lynn said at the Monday, Sept. 28 meeting. "Most of the formulas that dictate what our tax rates can be don't allow us that discretion, so we would have to turn to voters."

The board adopted a tax rate of $0.9969 per $100 valuation for 2026-27, a 5.68% decrease from the prior year. Lynn said the district cannot raise the rate further without calling a voter-approval election.

How state funding works

Texas reimburses school districts $1 for every mile a general education student travels on a bus and up to $1.13 per mile for special education students, according to the KPRC report. A 2025 state funding bill added 5 cents per special education mile. Districts can seek additional money for students who live within 2 miles of school and would otherwise walk a hazardous route, but a reimbursement cap applies.

Fort Bend ISD offers transportation for students living 2 or more miles from their assigned school, according to the district's student handbook.

The shortfall is not unique to Fort Bend ISD. KPRC found state funds covered roughly 13% of Alief ISD's transportation costs and 15% of Cypress-Fairbanks ISD's costs in recent budget years.

Aging fleet adds pressure

The district is also working to update an aging bus fleet. At an Aug. 31 meeting, the board approved a budget amendment using $515,679 in 2023 bond contingency funds plus an $841,072 Texas Clean School Bus Program grant to replace eight buses. As of March, only 122 of the district's 416 buses had three-point seatbelts.

State Sen. Carol Alvarado, D-Houston, told KPRC she believes transportation funding will get more attention in the upcoming legislative session because school closures across the state are sending families longer distances.

"We know that a lot of the schools have very old buses that need to be replaced, so there needs to be some stream of funding for that," Alvarado told KPRC.

The board of trustees meets next on Monday, Oct. 5 at 6 p.m. at the Fort Bend ISD Administration Building, 16431 Lexington Blvd. in Sugar Land.