It’s Official … TX Comptroller Investigating BHISD

BHISD under investigation under leadership of BHISD Superintendent Greg Poole

By Gloria Way

  Texas Comptroller Don Huffines announced last week that following a request from Governor Greg Abbott, his office is investigating four public school districts for financial performance reviews. The ISDs are Austin ISD, Barbers Hill ISD, El Paso ISD, and Prosper ISD.

  The Comptroller is investigating whether district spending complies with state law and whether money is being directed towards students, classrooms, and teachers rather than excessive administration or non-instructional bureaucracy. Huffines statement said, “This review is an important step to ensure transparency, accountability, and the responsible use of public funds.”

Huffines also said that his office was committed to providing a clear assessment so Texans could understand how their education dollars are being used.

  The Texas Education Agency began an investigation into BHISD in February 2026. Concerns had been raised about how BHISD manages public money, how it operates alongside the Barbers Hill Education Foundation (BHEF,) and whether district officials complied with Texas law.

  Scrutiny has been raised about how BHISD redirected up to $100million in taxpayer funds to the BHEF. BHEF invested the taxpayer money and increased BHEF’s substantial net worth to close to $200million. Questions about the legal basis for the transfers of funds from a taxpayer supported entity (BHISD) to a nonprofit (BHEF) are being investigated.

  TEA’s investigation concerns the legal and financial relationship between a public school district and a nonprofit foundation that has accumulated substantial assets using funds redirected from the district. As stated, BHISD transferred close to $100million of school taxpayer funds to BHEF.

  While the Comptroller’s announcement does not provide a detailed BHISD specific list of transactions or individuals under examination, the following are areas to watch: (1) administrative spending – salaries, staffing levels, consultants, and other non-instructional costs; (2) use of school funds – whether expenditures comply with state law and serve legitimate district purposes; (3) allocation of education dollars – how much funding reaches classrooms, teachers, and students; (4) financial management and accountability – whether spending patterns support the state’s stated goal of responsible use of taxpayer money.

  The announcement of an investigation does not automatically assume BHISD or BHEF have committed a crime.

  The lawsuit filed in January 2026 by BHISD Superintendent Greg Poole, who is also Executive Director of BHEF, against State Representative Terri Leo Wilson for slander and defamation against BHEF, brought the financial dealings of the district and foundation to the forefront. And questions have arisen about conflicts of interest, transparency, and nepotism.

  The final report is due December 31, 2026, so the 90^th Texas Legislature has time to consider recommendations for reform if necessary.