Hays CISD financial rating drops to C as district expansion strains budget
The district earned 78 points on the Texas Financial Integrity Rating System, a dip officials attribute to rapid growth, while San Marcos schools present new plans to reverse academic declines.
By Pedro Barnes ·
Hays CISD received a C grade on the Texas Financial Integrity Rating System, or FIRST, earning 78 out of 100 possible points in the latest evaluation by the Texas Education Agency.
The FIRST system measures the financial accountability of all public school districts in the state using 21 specific indicators. These metrics include fund balance, debt levels, student attendance, and public communication. The 2026 report noted that the district failed on five of those indicators, specifically those tracking changes in fund balance, short-term debt repayment ability, and the ratio of revenue to expenditures.
District officials stated that they anticipated the score decline this year. They explained that such dips are common for high-growth districts like HCISD, where rapid enrollment increases often outpace revenue adjustments in the short term.
Deborah Ottmers, the district's Chief Financial Officer, said scores should improve over the next few years. She cited budget cuts in the FY 2026-27 cycle, which she expects will reduce expenditures and allow the fund balance to recover.
In a separate update, San Marcos CISD principals presented targeted improvement plans on Oct. 19. These plans aim to increase graduation rates at San Marcos High School and raise the academic standing of Mendez Elementary School.
Principal Eileen Grose noted that the high school's graduation rate jumped from 39.2% in 2022 to 83.8% in 2023. The campus is now working toward a rate between 90.5% and 95% by spring 2027. To achieve this, the school will implement six specific action steps designed to boost the overall graduation figure.
Mendez Elementary School saw its overall score drop from 89 in 2025 to 63 in the 2026 A-F Accountability Scores. This 26-point decline moved the school from a B to a D rating. The campus is targeting a C or higher rating by 2027 and is focusing on specific growth goals for STAAR testing scores to close achievement gaps.
