Houston Independent School District

What Houston Independent School District does

Houston Independent School District (HISD) is the largest school district in Texas and the seventh-largest in the United States, operating approximately 273 campuses across the Houston metropolitan area with a workforce of more than 25,000 employees including 10,200 classroom teachers. The district delivers free K-12 public education to resident families through a School Choice enrollment system, broadly accessible via the School Choice Navigator orientation platform, and offers a diversified academic portfolio including: the New Education System (NES) instructional framework at 130 schools with extensive coaching and professional development; Future 2 Schools integrating AI literacy with hands-on workshops starting in grades 3-4; Career & Technical Education with specialized career centers in cybersecurity, drones, and healthcare; college-ready programming (AP, IB, dual enrollment, UT OnRamps, P-Tech); Miles Ahead Scholars; and Pre-K/early childhood programs. The district's technology stack includes Canvas as the learning management system, ParentSquare for two-way family communication, and the eSHARS web-based Medicaid billing system operated through its Medicaid Finance & Consulting Services (MFCS) subsidiary.

The business model is that of a public entity funded primarily through local property taxes ($0.7116 maintenance/operations plus $0.1667 debt service, totaling $0.8783 per $100 of taxable value for tax year 2025, with a $140,000 homestead exemption plus 20% of appraised value), state foundation aid, and federal grants including ESSER (~$1.24B cumulative across CARES/CRRSA/ARP), Title I/II/IV, and Medicaid/SHARS reimbursement. The MFCS division operates as a unique quasi-commercial unit within the district, providing SHARS Medicaid consulting and eSHARS billing platform services to 200+ Texas school districts with reported client outcomes of 70-75% average increases in SHARS reimbursement. Capital structure includes $1.5B total tax-supported debt outstanding as of June 30, 2025; a $4.4B bond referendum was defeated in November 2024, creating a capital-funding gap.

HISD is governed by an elected Board of Trustees under Texas Education Agency oversight, which took over the district in 2023 and appointed Superintendent Mike Miles. Under his leadership, the district has executed a system-wide academic transformation that has moved 197 schools to A or B ratings (up from zero A-rated schools in recent prior years), eliminated all F-rated campuses (down from 56), and is targeting the "Houston Promise" initiative to ensure every student attends an A- or B-rated school by August 2027. The strategic plan "Destination 2035" emphasizes AI literacy, strong instruction, and real-world skills for the 2035 workforce. Regulatory dependencies include Texas Education Agency (accountability and funding), Texas Health and Human Services Commission and TMHP (Medicaid/SHARS), Harris County Tax Office (collections), and federal Department of Education (Title funding), with the district subject to an ongoing K-12 education fraud investigation referenced in OIG reports covering $225M in alleged fraud across 24 states.

Name

Houston Independent School District

Legal name

Houston Independent School District

Website

https://houstonisd.org

Company type

Public

Founded year

1920

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Houston Independent School District is the largest school district in Texas and seventh-largest in the United States, operating ~273 campuses delivering free K-12 public education to Houston-area families, with a commercial subsidiary providing SHARS Medicaid consulting to 200+ Texas districts.

Ownership category

akta.pro rank

Product category

Public K-12 Education

NAICS

Elementary and Secondary Schools (611110)

SIC

Services-Educational Services (8200)

akta.pro primary industry

Public School Districts (K–12) (EDADABAA)

akta.pro secondary industry

Public K–12 Combined Schools (EDAJAAAE)

Keywords

• Public K-12 education
• Career technical education
• Special education services
• School choice enrollment
• Medicaid billing consulting

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Supply Chain

Revenue model

1. Property Tax Revenue: Local maintenance and operations tax collected at $0.7116 per $100 of taxable value, plus $0.1667 for debt service totaling $0.8783 per $100 valuation for tax year 2025
2. ESSER Federal Grants: COVID-19 pandemic relief funding: CARES Act ESSER I ($79.7M to HISD), CRRSA ESSER II ($358.2M), and ARP Act ESSER III ($804.8M) for learning recovery and school operations
3. Title I, Part A: Federal funding for economically disadvantaged students to improve basic programs and close achievement gaps
4. Medicaid/SHARS Reimbursement: Federal reimbursement for health services delivered to Medicaid-eligible special education students; district provides consulting services to 200+ Texas school districts through Medicaid Finance & Consulting Services division
5. Title II, Part A: Federal funding to improve teacher and principal quality through professional development
6. Title IV, Part A: Federal funding for well-rounded education, safe and healthy students, and effective technology use

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels6 records

Core offering

Houston Independent School District operates free public K-12 education across approximately 274 campuses in Houston, Texas, serving as the largest school district in Texas and seventh-largest in the United States. The district delivers a range of instructional programs including the New Education System (NES) framework at 130 schools, Future 2 Schools focused on artificial intelligence, Career & Technical Education, College-Ready Programming (AP, IB, dual credit), Pre-K and Early Childhood programs, and special education services. Additionally, the district's Medicaid Finance & Consulting Services (MFCS) division provides SHARS Medicaid billing software (eSHARS) and consulting services to over 200 Texas school districts.

Product overview

Houston Independent School District operates as a K-12 public school district serving over 273 campuses with approximately 25,000 employees and 10,200 classroom teachers. The district's educational portfolio includes Future 2 Schools (AI-focused elementary schools), the New Education System (NES) at 130 schools, Career & Technical Education with specialized career centers, College-Ready Programming (AP, IB, dual enrollment), Pre-K and Early Childhood programs, and Miles Ahead Scholars scholarship program. The district also offers the eSHARS online Medicaid billing system for school health services. The district's strategic plan, Destination 2035, focuses on preparing students for success in 2035 through AI literacy, strong instruction, and real-world skills development.

Differentiator

Problem solved

Functional benefit

Brands

• Future 2 Schools: Schools focused on artificial intelligence skills combining core academic learning with real-world experiences, hands-on workshops, team sports, and AI literacy starting in grades 3 and 4.
• New Education System (NES)
• Miles Ahead Scholars
• Houston Promise

Products and services

• Future 2 Schools A specialized school model combining focused learning in core subjects and critical thinking with hands-on workshops, team sports, and real-world experiences. These schools emphasize AI literacy and skills to prepare students for an AI-enabled future.
• New Education System (NES) An education model implemented at 130 HISD schools to transform education and support schools that have historically struggled to deliver high-quality education. NES schools follow a clear and consistent instructional framework with extensive coaching for educators.
• Career & Technical Education (CTE) Programs offering career exploration and preparation including career centers with programming in cybersecurity, drones, and healthcare. Also includes Programs of Study and Business and Industry Partnerships.
• College-Ready Programming Comprehensive college preparation offerings including Advanced Placement (AP), AP Capstone, International Baccalaureate (IB), Early College & P-Tech High Schools, Dual Enrollment (UT OnRamps), Dual Credit, Summer Pathway to Associate Degrees (SPARK), and College Ready Assessments.
• Miles Ahead Scholars A scholarship program designed to support students through their educational journey with resources and guidance.
• HISD Alternative Certification Program (ACP) A certification pathway for individuals seeking to become teachers in the Houston ISD school district, including application requirements, certification information, salary and benefits details.
• Sunrise Centers Family support centers providing resources and assistance to Houston ISD families.
• HISD Career Centers Specialized career-focused schools offering programming in cybersecurity, drones, and healthcare fields, part of the district's College, Career, and Military Readiness (CCMR) initiatives.
• eSHARS Online Billing System A web-based online SHARS (School Health and Related Services) billing system designed for school districts participating in the Medicaid program. Features programmatic components and internal controls for Medicaid compliance; also offered as a consulting service to 200+ Texas school districts.
• Pre-K and Early Childhood Programs Early childhood education programs including Pre-K enrollment, Family Engagement Events, and Home Instruction for Parents of Preschool Youngsters (HIPPY).

Quantifiable outcome

• No F-rated schools - eliminated all 56 previously failing campuses
• +5 more outcomes

Named customers6 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability3 records

Feature5 records

Partnerships

Seven partnerships are on record, tiered core and supporting.

• Catapult Learning, LLCcoreImplementation/ SI/ Consulting PartnerThird-party vendor providing Title I, Part D Subpart 2 services for neglected, delinquent, and at-risk youth. Catapult delivers educational programs at residential facilities including The Center for Success and Independence, Odyssey House, and Shamar Hope Haven.
• Business and Industry PartnerssupportingStrategic or Co-development PartnerPartnerships supporting College, Career, and Military Readiness (CCMR) programs and career technical education pathways including programs in cybersecurity, drones, and healthcare
• Texas Education Agency (TEA)coreStrategic or Co-development PartnerState education agency overseeing public school funding, accountability ratings, curriculum standards (TEKS), and federal grant administration including ESSER funds
• Texas Health and Human Services Commission (HHSC)coreStrategic or Co-development PartnerState agency administering Medicaid programs including SHARS, providing federal reimbursement for school-based health services for special education students
• Texas Medicaid & Healthcare Partnership (TMHP)supportingTechnology or IntegrationState Medicaid administrator processing SHARS claims and reimbursements for school health services
• Harris County Tax OfficesupportingOthersCounty office collecting HISD property taxes on behalf of the district
• Baylor College of MedicinesupportingStrategic or Co-development PartnerCollaborative programs including Academy at Ryan and Biotech Academy at Rusk offering health professions pathways

Scale indicators11 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Dallas Independent School District: The second-largest school district in Texas, serving a comparable urban K-12 population in the DFW metroplex with overlapping challenges in equity, accountability ratings, and bilingual programs.
• Fort Worth Independent School District: Large urban Texas school district comparable to HISD in scale, demographic profile, and reliance on state accountability systems, with similar career-tech and college-readiness programs.
• Austin Independent School District: Major Texas urban district serving a similar K-12 public school population with comparable property-tax-based funding, state accountability pressures, and bilingual/multilingual programming.
• Cypress-Fairbanks Independent School District: Large suburban Houston-area district competing directly with HISD for enrollment; comparable in size and operates within the same regional labor market and Texas accountability framework.
• San Antonio Independent School District: Major urban Texas district with overlapping demographics, large bilingual populations, and similar federal Title I funding reliance; comparable in operating complexity and academic intervention needs.
• Aldine Independent School District: Large Houston-area district with overlapping enrollment territory, similar Title I funding reliance, and bilingual programs; competes for the same student population and labor pool.

Broad incumbents

• Los Angeles Unified School District: The largest school district in California and second-largest in the U.S., sharing HISD's scale challenges, multilingual programming needs, and accountability reform experience.
• Chicago Public Schools: Third-largest U.S. school district with comparable urban scale, pension/debt burden, and demographic composition; operates under mayoral/state oversight dynamics similar to HISD's state takeover.
• New York City Department of Education: The largest U.S. school system, comparable to HISD in operating complexity, accountability oversight, and diversity of programming; sets nationwide benchmarks for urban K-12 systems.

Regional players

• Broward County Public Schools: Sixth-largest U.S. district and the largest in Florida, comparable in scale and demographic profile; operates under state accountability frameworks similar in rigor to Texas's system.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/houstonisd
• YouTubeyoutube.com/@HISDNOW
• Facebookfacebook.com/houstonisd
• Instagraminstagram.com/houstontxisd
• LinkedInlinkedin.com/company/houston-isd

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Houston Independent School District