Greenwood ISD Anticipates Layoffs Amid Financial Challenges

District superintendent and CFO cite policy failures in Austin as the reason for potential budget cuts.

Published on Feb. 20, 2026

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Greenwood Independent School District in Texas is anticipating having to lay off staff due to financial challenges. The district's superintendent and chief financial officer say the issues stem from policy failures in Austin, including the expiration of a state grant that had previously provided millions in funding to the growing district.

Why it matters

Greenwood ISD's financial troubles highlight the broader challenges facing school districts in Texas, where policy decisions at the state level can have significant impacts on local budgets and staffing. As a growing district, Greenwood ISD is struggling to maintain its educational offerings and meet the needs of its increasing student population.

The details

Greenwood ISD's budget is heavily weighted towards salaries, with 68% of its $3.2 million monthly budget going towards payroll. The district had to take out a $5 million loan in October to cover these costs. Superintendent Ariel Elliot and CFO Steven Jerden say the issues stem from policy decisions in Austin, including the 2019 House Bill 3 that required teacher pay raises, as well as the expiration of a state grant program that had previously provided millions in funding to the district.

  • In 2019, House Bill 3 passed, requiring teacher pay raises.
  • From 2020 to 2023, Greenwood ISD received between $2.9 million and $7.5 million annually from the state's Formula Transition Grant program.
  • The Formula Transition Grant program expired before the last school year, leaving the district without a key source of funding.

The players

Ariel Elliot

Superintendent of Greenwood Independent School District.

Steven Jerden

Chief Financial Officer of Greenwood Independent School District.

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What they’re saying

“Everybody that's making decisions or everybody that works for us, it's very difficult for everybody. The interesting thing is the people that caused this aren't doing it.”

— Ariel Elliot, Superintendent (newswest9.com)

“You know it's a broken system when Greenwood, a growing school district, has to go through a layoff. We should have funding because we are growing, and it's just not there.”

— Steven Jerden, Chief Financial Officer (newswest9.com)

The takeaway

Greenwood ISD's financial challenges underscore the broader funding issues facing school districts in Texas, where policy decisions at the state level can have significant impacts on local budgets and staffing. As a growing district, Greenwood ISD is struggling to maintain its educational offerings and meet the needs of its increasing student population, highlighting the need for more sustainable and equitable funding solutions.