Clear Creek ISD trustees approved a budget of more than $430 million on Aug. 24 that carries a $23 million deficit for fiscal year 2026-27, which began Tuesday, Sept. 1.

The shortfall reflects a financial squeeze driven by enrollment losses. The district counted 38,780 students in 2025-26, down from 42,388 in 2019-20, a drop of roughly 3,600 students in six years, according to Texas Education Agency (TEA) data.

Chief Financial Officer Alice Benzaia called the enrollment slide the single biggest factor behind the gap. "Our funding is tied to enrollment and attendance, and when that goes down, our funding goes down," Benzaia told Houston Public Media. "So, that has really been the biggest driver."

District spokesperson Elena Polsen said 81% of CCISD taxpayers do not have school-aged children. Officials described the shift as moving from a fast-growth district to a maturing one with lower birth rates and aging neighborhoods.

Rising costs for utilities, fuel and insurance have added to the pressure, Benzaia said at an Aug. 17 board meeting. The district eliminated 77 positions through attrition for the current fiscal year, saving $5 million. Those savings were offset by a $7.5 million salary increase and a $900,000 bump in the Galveston County security contract, according to Community Impact.

To cover the immediate gap, CCISD plans to draw from its $39 million capital contingency fund, Benzaia said.

Looking further out, district officials outlined four strategies to stabilize finances beyond fiscal year 2027: reducing staff through attrition, selling surplus land, recruiting students through online programs and consolidating district facilities. Superintendent Karen Engle clarified that the consolidation targets office spaces, not schools.

The online push is already underway. CCISD partnered with Texas Tech University to launch Clear Tech for the 2026-27 school year, an asynchronous program aimed at drawing new enrollment.

The district also expanded its open enrollment policy in February 2025, allowing anyone to enroll at the superintendent's discretion. Transfers into CCISD rose more than 30% from 2024-25 to 2025-26, according to TEA data. The number of students leaving the district still more than doubles those coming in.

Board President Jonathan Cottrell pushed to add surplus property sales to the district's budget priorities at a July 2026 meeting. He also flagged unfunded state mandates as a growing cost.

Senate Bill 546, passed during the 89th Texas Legislature, requires school buses to carry three-point seat belts by Sept. 1, 2029, at an estimated cost to CCISD of more than $5.3 million. "[The state legislature] is telling us we have to do these things, but [they're] not giving us money to do so," Cottrell said at the July meeting, according to Community Impact.

The projected tax rate stands at $0.969 per $100 of home valuation, according to district documents. The district is also considering a $19.1 million voter-approval tax rate election in fall 2027.

Trustees are scheduled to formally adopt the tax rate at the Sept. 28 board meeting.