Leander ISD officials are putting together the latest budget projections for 2026-27, and the district is estimating between a $6.8 million to $13.7 million shortfall depending on whether the board increases the budget deficit parameter to fund staff raises. The projections are down from original estimates of a nearly $19.6 million shortfall.
The overview
Chief Financial Officer Pete Pape and executive director of business Gina Mitschke provided the update to the board of trustees during its March 26 meeting.
According to Mitschke, LISD's demographer population and survey analysts is projecting an enrollment of 41,841 students next year, a decrease of 607 students from the current 2025-26 year.
Officials have already outlined $10.8 million worth of expenditure reductions to make, which includes the Faubion Elementary consolidation, staffing ratio adjustments and central office reductions.
Pape said district administration is also exploring a variety of revenue generators to address the 2026-27 shortfall and beyond, including:
- Nearly $950,000 from additional Career and Technical Education courses
- $124,000 from increasing facility rentals by 2%
- The sale or lease of land; however, Pape said this is not currently built into the budget
- Approving a Texas Education Agency funding formula called Additional Days School Year which would require approving an academic calendar with at least 175 instructional days, but Pape said this would not impact the 2026-27 budget
The budget also includes $1 million in revenue from the special education allotment approved during the last Texas Legislative session. However, Pape said the district won't know what the actual funding amount is until September 2027.
Other budget considerations include a Voter Approval Tax Rate Election, or VATRE. If called by the board the election would be held in November, and if passed would increase the maintenance and operations tax rate by three cents to generate an additional $6.5 million in revenues.
Something to note
The board could also increase the current budget parameter, or how much the district can spend beyond its revenue, from 1.5% to 3%.
The projected $6.8 million shortfall was made under the current 1.5% parameter and does not include pay increases.
The projected $13.7 million shortfall takes into consideration a 3% parameter which would be able to fund approximately $6.8 million worth of pay increases.
"I don't think we need to make reductions just to make them, so if the budget parameter is too low and we are making up those funds or having that savings, we should consider changing the budget parameter," Mitschke said.
Looking ahead
- April: receive certified estimated property values and present the preliminary budget
- May: approve compensation plan and consider "near final" budget
- June: hold a budget public hearing and adopt the budget
- August: tax rate adopted once certified property values are received
