Navarro Independent School District

GERONIMO, TX — June 3, 2026 — Navarro ISD Chief Financial Officer Paul Neuhoff testified on June 1 before the Texas House Committee on Public Education, advocating for Texas school districts facing severe hardships due to increasingly complex state funding calculations and skyrocketing operational costs.

The hearing, chaired by State Rep. Brad Buckley (R-Salado), was called to review the implementation of House Bill 2 (HB 2)—a sweeping public education finance bill passed last year—and its direct impacts on school districts, teacher recruitment, and special education programs.

As reported by KXAN in the article "8 billion given to Texas public schools: Lawmakers revisit the funds" (by Dylan McKim and Eden Shimanek), lawmakers on both sides of the aisle questioned the Texas Education Agency (TEA) during the hearing regarding why numerous school districts that were promised increased revenue under HB 2 actually lost funding. KXAN noted that State Rep. Jeff Leach (R-Plano) stated the financial estimates, or “runs,” provided to lawmakers when they voted on the bill were inaccurate, adding that the legislation ultimately "hurt" some of his local districts.

Testifying on behalf of Navarro ISD and the Guadalupe County Education Coalition (GCEC), Neuhoff brought 32 years of school finance experience directly to the panel. Speaking with KXAN, Neuhoff highlighted how the compounding layers of state legislation and unpredictable variables, such as shifting homestead exemptions, have made drafting local school budgets nearly impossible. "It has become more complicated as the legislature has added on more layers and more additions," Neuhoff explained.

In his testimony to the committee, Neuhoff praised the creation of the Allotment for Basic Costs (ABC allotment), particularly its structure based on student enrollment rather than attendance, noting that operational costs do not change when attendance fluctuates. However, he stressed that current state funding is vastly falling short of real-world inflation.

While Navarro ISD receives just over $300,000 through the ABC allotment, the district spends roughly $1.5 million annually on essential operations that are entirely outside of its control. Neuhoff shared stark data reflecting the financial pressures local districts are under:

• Utility Costs: Navarro ISD’s utilities have surged nearly 60% since 2019.
• Retirement Contributions: The district's Teacher Retirement System (TRS) payments have jumped 62% since 2021.
• Transportation Inflation: Last school year, Navarro's average cost per mile rose to $3.92 before the recent spike in diesel fuel prices and an unfunded mandate to retrofit local school buses with seatbelts that would cost the district over $500,000.

Neuhoff urged lawmakers to use the ABC allotment as a mechanism to shield schools from market pressures by either expanding the allotment to match true district needs or tying it to the Texas Consumer Price Index every biennium. He also noted it could provide a steady baseline to protect districts experiencing severe fluctuations in state "hold harmless" funding due to property tax revenue changes.

Julia Grizzard, Executive Director of the Bexar County and Guadalupe County Education Coalitions, commended Neuhoff's testimony and his ability to field multiple questions from lawmakers regarding inflation and enrollment-based funding. Dr. Mandy Epley, Navarro ISD Superintendent of Schools stated, “By sharing Navarro ISD’s perspective on school finance and our willingness to be present to answer questions, we hope to forge relationships with the committee members in order to educate and prompt discussion as they consider their charges regarding public education and prepare for the 90th legislative session.”

Navarro ISD remains committed to working alongside state leaders to ensure school finance calculations are transparent, predictable, and fully equipped to support student success and teacher retention. Click here to watch the full recording of the hearing.