GISD officials discussed ways to cut costs at a Jan. 12 board workshop as the district observes a slowing of its projected enrollment growth. Additionally, the district may consider calling a voter-approval tax rate election, or VATRE, to increase its tax rate this fall.
“It is absolutely certain that the growth is going to happen, but the pace at which it's happening slowed down,” Superintendent Devin Padavil said about GISD’s enrollment.
The big picture
GISD has been preparing to open Elementary School No. 12 and Middle School No. 5 in August off Patriot Way and SH 130 near East View High School. The construction of both buildings was funded by the district’s $649 million bond election in 2024.
At the Jan. 12 workshop, district officials shared that GISD is projected to face a $1.75 million budget shortfall in fiscal year 2026-27 if both campuses open as planned this fall. The district would need to make $1 million-$1.5 million in budget cuts, raise class sizes and not provide raises for staff.
Not opening the elementary school would lower the projected shortfall to $575,000 while not opening the middle school would result in a $1.05 million budget surplus. Both of these scenarios assume that the district would make $1 million-$1.5 million in cost reductions, increase class sizes and not increase employee pay.
In the future, GISD may need to consider no longer offering block scheduling at high school campuses and reducing positions that support teachers, such as interventionists and instructional coaches, Padavil said.
If the district delayed opening both campuses, GISD could realize a $1.25 million budget surplus. The district would not have to make budget cuts in this scenario and could potentially provide staff pay raises.
“My heart wants to open these two schools,” Padavil said. “My head is saying, ‘Hold on.’ Because if we open both schools next year, the concern I want the trustees to wrestle with is, 'Do we put ourselves in a position of causing a financial hole for the district?'”
How we got here
GISD is expecting to see a $3.8 million decline in revenue due to its 2025 enrollment projection of 14,095 students in the 2026-27 school year being 384 students less than its 2023 projection of 14,479 students. The state of Texas funds public school districts based on the average number of students who attend class each day.
“The additional costs of staffing the school is usually offset by a fast-growth district,” Padavil said. “But when growth starts to taper off, then we don't have that student enrollment, since that's how we're funded, that compensates for that additional cost.”
Single family homes in Georgetown are staying on the market longer than in previous years due to higher interest rates, Georgetown City Manager David Morgan said. In 2025, the city of Georgetown recorded its lowest growth rate of new water customers in the last decade and saw a decline in the number of new single family building permits issued, Morgan said.
“It's still growth,” Morgan said about an increase in Georgetown Water customers. “It's just, compared to our very fast growing area, it's not as hypergrowth as what we've seen in previous years."
Additionally, next school year, some Georgetown families may begin receiving funds to pay for private school tuition through the state's $1 billion education savings account program.
The impact
In light of the new enrollment projections, fewer GISD campuses are expected to near or exceed capacity next school year, according to district data. The district may need to shift its approach from building schools ahead of projected enrollment growth to letting campuses reach capacity before calling for more bond elections, Padavil said.
If GISD does not open Middle School No. 5, the district could invest in portable buildings and have teachers float between multiple classrooms, he said.
What else?
GISD could generate additional revenue through calling a tax-rate election in November. In FY 2025-26, the district’s maintenance and operations tax rate of $0.69 per $100 valuation was lower than that of Hutto, Leander, Liberty Hill, Pflugerville and Round Rock ISDs, according to district documents.
The district could receive around $900,000 in additional funding for each copper penny that is added to its tax rate, according to GISD information. Providing a 1% pay raise for staff would cost the district around $1.3 million.
Going forward
District officials will hold budget workshops throughout the spring, request input from community members and explore calling a potential tax-rate election. GISD could also open enrollment to students living outside of the district at campuses with additional capacity, according to GISD documents.
GISD will continue hosting town halls in January and February on rezoning campuses for next school year. If the opening of the new schools is delayed, the district plans to still rezone certain campuses to relieve overcrowding, including Wolf Ranch Elementary.
