The discussion comes a few months after the district adopted its FY 2024-25 budget with a nearly $13.1 million shortfall amid recent cuts to state and federal funding.
Zooming out
The district is projected to adopt a $29.88 million shortfall for FY 2025-26, assuming the district does not make any budget adjustments from previous fiscal years, which LISD does not plan to do, Chief Financial Officer Pete Pape said.
“If we continue to do the exact same things that we do, we kind of know we’re in trouble,” Pape said. “We want to be ahead of the game [as] much as possible to still meet what our goals are and what our focus is.”
Next fiscal year, the district could face potential funding reductions and expenses in several areas, including:
- $7 million decrease in funding due to lower enrollment and interest earnings
- $3 million in potential pay increases following a salary study by the Texas Association of School Boards, or TASB
- $3.25 million for a 1% compensation increase
- $1.5 million reduction in Title I funding
- $1.85 million in expenses for the new LISD Police Department
The district’s enrollment is around 563 students less than prior projections from Population and Survey Analysts, resulting in a $7 million funding reduction, Pape said. District officials have recently discussed opening enrollment to students outside of the district.
TASB is currently reviewing pay grades for all district staff through a salary study that is expected to be completed by February, Pape said. Pape told Community Impact the district expects the study to determine LISD is “under market” in several pay areas.
The district plans to incur around $3.7 million in expenses for its new police department with $1.85 million allocated for FY 2025-26. Shā Rogers, the district’s executive director of safety and security, told Community Impact she hopes to have officers and school marshals on campus sometime between January and next school year; however, a definite time frame is yet to be established.
In future fiscal years, the district anticipates adopting shortfalls to cover staff health insurance and instructional materials along with $3 million in costs to build Elementary Schools No. 31 and 32. Board members requested that district staff begin working toward building Elementary School No. 31 at a Sept. 19 meeting.
Also of note
Texas lawmakers will reconvene in January for the state’s 89th legislative session.
LISD is expecting the following actions to occur this session, Pape said:
- A $40-$140 increase to the basic allotment of funding per student
- Any additional funding to be tied to specific spending areas
- Push for districts to join the Teacher Incentive Allotment
- Approval of a voucher program
Stay tuned
At the Oct. 10 meeting, board members wrote down their budget priorities in the areas of student and teacher support, health care, staffing, and facilities.
District officials will review these priorities before presenting the FY 2025-26 budget preassumptions to the board in December, Pape said.
“One of our main focuses again will be on the efficiencies,” Pape said. “Can we still continue the great things that we do every day with our staff and our students ... but is there a way we can do it more efficient.”
