What does it mean that the district has a budget deficit?
A budget deficit means that the district’s planned spending for the year is higher than the money it expects to receive. For the 2026-2027 school year, we currently have a $9.5 million projected deficit; however, we are working to balance this before the Board of Trustees adopts the budget in June.
Is this a real cash shortfall or a projected one?
It is a projected one. Because the school year hasn't started yet, these numbers are a look at the future. By identifying a potential gap now, we can make adjustments and explore strategies to prevent a real shortfall later.
How did the district get to this point?
Several factors have combined at once:
- Minimal increase in state funding. The amount school districts receive per student has not increased significantly for more than 5 years.
- Declining Tesla Payments: The Chapter 313 payments from Tesla have peaked and dropped significantly to $1.0M this year.
- Rising Costs: Basic costs for things like property insurance (+5%) and the district's portion of employee healthcare (+6.5%) have increased.
- Inflation: Like every household, the district is paying more for utilities and supplies than it did a few years ago.
What is the district doing to address the deficit?
We are using several strategies:
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Refining Projections: Updating our data as property values and enrollment numbers become more certain.
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Efficiency: Looking for ways to save on operational costs.
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The VATRE tax rate election: Giving the community the choice to invest in the district to restore the deficit and fund future raises.
Is this unique to our district?
No. School districts across Texas are facing similar challenges due to rising operational costs and a lack of increased per-student funding from the state legislature.
Why can’t the district just get more funding from the state?
The amount of money the district receives per student (the "basic allotment") is set by the Texas Legislature. That amount has not increased significantly in several years, despite high inflation.
Does enrollment affect funding?
Student attendance has the largest effect. A large portion of our funding is based on Average Daily Attendance (ADA). For 2026-2027, we are projecting an enrollment of about 11,800 students, but funding is based on average attendance, not actual enrollment. While the most important part of student attendance is the amount of time spent learning, more absences also decreases district funding.
Can the district raise property taxes to close the gap?
The district can only raise the tax rate to a certain point without voter approval. The only way to access extra tax dollars that stay within the district is to hold a Voter Approved Tax Rate Election (VATRE).
What are the largest parts of the district’s budget?
By far, the largest part of our budget is people. Education is a human-centered service, so nearly 90% of our funds go toward salaries and benefits for teachers and staff.
Will classrooms be impacted by cuts?
Our primary goal is to keep any budget adjustments as far away from the classroom as possible. We are looking at balancing strategies like administrative efficiencies and managing vacancies to protect the student experience.
Are layoffs or furloughs being considered?
No. We are looking at managing staff through attrition, which means not filling certain positions when someone leaves or retires. These are determined on a case-by-case basis.
How will this affect staffing levels?
We are carefully analyzing every vacancy. We only plan to add essential new positions while working through reassignments where possible to ensure every school is supported.
Will employee compensation be affected?
We are committed to remaining competitive. We currently lead the region with a $60,000 starting teacher salary. In addition, teachers received large raises last year from state funding. However, that funding was very specific and did not provide increases for non-teaching staff or operational costs.
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If a tax rate election takes place and passes, we can fund raises in 2026-2027 and additional raises the following year. A tax rate election would also allow us to sustain these increases.
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If a tax rate election is not called or does not pass: The district would propose a one-time retention payment for all staff ($1,000 for full-time/$500 for part-time) in January 2027.
Will class sizes increase?
While we are looking for efficiencies, we aim to keep class sizes within state guidelines and at levels that support high-quality learning.
Will programs like CTE, arts, or electives be affected?
There are no current plans to cut these programs. In fact, a successful tax rate election would help provide the long-term funding needed to protect these extracurricular activities and student services.
What is the timeline for budget decisions?
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June: Public Hearing on the Proposed Budget.
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August: Official adoption of the tax rate and decision on the November VATRE tax rate election.
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November 3rd: Potential Election Day.
How can the community give input?
The community is encouraged to attend Board meetings and participate in the Public Hearing scheduled for June.
