In a significant oversight, Houston Independent School District (HISD) Superintendent Mike Miles revealed that his administration bypassed required school board approval for approximately $870 million in spending over the past 16 months.
The administration failed to present about 130 purchase agreements to the district's state-appointed board for monthly approval, breaking district policy. These agreements, made through cooperative purchasing arrangements, averaged around $55 million per month - nearly double the previous monthly average of $30 million.
Miles addressed the issue in a YouTube video Monday, stating that HISD administrators did not intentionally conceal any agreements. "Prior to winter break, we discovered that we weren't following all the policies related to procurement review process," Miles explained. "One important step is board approval, and that step was missed."
Board members, while not identifying any immediately problematic spending, expressed concern about the policy breach. Adam Rivon, a member of the district's Audit Committee, stated, "While I appreciate efforts to address the issue retroactively, I'm not satisfied because these mistakes make it harder for parents and the community to trust that things are being handled the right way."
The district's internal auditor has reviewed each unapproved purchase agreement and found no legal violations. Of the $870 million approved without proper oversight, approximately $200 million has been spent so far. The agreements primarily covered day-to-day operations such as school grounds maintenance and equipment rentals, with some consultant contracts included.
The board is expected to consider retroactive approval of these vendor awards at their upcoming Thursday meeting. Moving forward, HISD's legal department will work closely with the procurement team to prevent similar oversights, and quarterly audits will be conducted.
This revelation comes during a period of community pushback against Miles, who has implemented sweeping changes since his June 2023 appointment by Texas Education Commissioner Mike Morath. While no HISD employees have been disciplined over the mistake, the incident has raised questions about district oversight and transparency.
The error occurred despite a policy change in August 2023 that increased Miles' spending authority without board approval from $100,000 to $1 million for contracts awarded through the bidding process. However, this change did not apply to cooperative agreement purchases, which still required board approval regardless of value.