New Braunfels ISD is preparing for potential changes to staffing, facilities, and academic programs as the district projects a $7 million budget deficit for the 2027-28 school year.

NBISD Superintendent Dr. Laurelyn Arterbury made the announcement in a video posted last week. 

Future funding deficits beyond the 2027- 2028 school year are expected to be even greater, Arterbury noted, pointing to several determining factors.

Declining Enrollment

NBISD enrollment fell by 137 students, or about 1.4 percent, from 9,893 in 2024–25 to 9,756 in 2025–26. The district’s demographic consultant nevertheless projects enrollment will eventually resume growing, reaching about 11,069 students over the next decade.

“After years of growth, we are now seeing enrollment flatten or decline at campuses across the district,” Arterbury said. “At the same time, state funding has not kept pace with inflation and the rising costs of operating schools. There’s been no substantial increase in state funding to cover rising costs since 2019.”

To help balance district’s budget, Arterbury said the district “has strategically used available revenue sources” over the last several years.

Those include the 2023 Voter-Approved Tax Ratification Election (VATRE), New Instructional Facility Allotment (NIFA) funding, and one-time state funding. 

But some of those sources are no longer available, she said.

“NBISD is no longer eligible for the new instructional facility allotment, which provided temporary additional state funding to help cover operating costs as new campuses and instructional facilities opened,” Arterbury said. “NBISD is also facing the loss of a prior year funding adjustment, which will reduce revenue available to us in the 2027-2028 budget year.”

Long-Range Sustainability Process

During a workshop earlier this month, the NBISD Board of Trustees and district administration team began working on a plan “to optimize district operations through a comprehensive long-range sustainability process,” according to a news release on the district’s website.

“As part of this process, we will conduct a facilities usage study to evaluate how our buildings and spaces are being utilized across the district,” Arterbury said. “We will also conduct a staffing study to ensure our staffing aligns with student enrollment and district needs. And we will evaluate academic programming to ensure we can continue providing high-quality opportunities for every student.”

While specific cuts, closures, staffing reductions, or tax proposals have not yet been identified, the committee could form the basis for decisions about campus use, staffing levels, programs, and future revenue measures.

NBISD’s Long-Range Sustainability Committee will consist of district staff, teachers, students, parents and community members. Committee members will review information, study district needs, ask questions and help develop recommendations for the future of NBISD.

Community Response

Former Navarro Independent School board member Marla Sievers commented in response to the plan that her district faced a huge deficit because of mismanagement of funds and expressed interest in applying for the committee. 

“[Dr. Arterbury] admitted that they relied on funding that was not permanent in their ‘strategic planning’… that is not strategic, that is poor management. Because you have a $100k credit card limit and make $50k a year doesn’t mean you spend $100k and ask for a credit increase. A line budget request needs to be made and frivolous spending needs to stop.”

Another community member, Jennifer Dermer, asked, “Why do schools have to be so elaborate?”

NBISD has opened at least four new or newly configured instructional campuses since 2021, including New Braunfels Middle School, Legend Point Elementary, Long Creek High School, and a new Lamar Elementary campus.

NBISD Balanced Budget

The New Braunfels ISD Board of Trustees, during its regular June 15 meeting, unanimously approved a balanced budget totaling more than $114.6 million for the 2026-2027 school year. 

Board President Nancy York said at that meeting the majority of public school districts around the state have not been able to have a balanced budget.

“I know it’s not easy, and in the years going forward it might not be possible, unless we, as a district, can come up with something to alleviate the problem or maybe, just maybe, the state throws us a bone in the next legislative session,” York said.

As part of the budget, trustees discussed a proposed tax rate of $1.0522 per $100 valuation, consisting of $0.6969 for maintenance and operations (M&O) and $0.3553 for interest and sinking (I&S).

In August, the trustees adopted a tax rate of $1.0377 per $100 of taxable value for the 2026–27 school year.

Neither NBISD nor York responded to follow-up questions for this story.

Michele White

Michele White is an award-winning independent journalist with more than two decades of experience in TV and print journalism. Her passion is investigating political and government corruption, and sex trafficking. Michele is the former Miss Iowa for America, and fluent in French. She credits her passion for liberty, love for the Constitution, grammar fanaticism (in two languages), and sarcasm to her Boston roots. You can follow Michele on X at @MassJournalist