Georgetown ISD delays opening new elementary and middle school as enrollment growth slows

What’s happening

GISD has been preparing to open Jessie Daniel Ames Elementary 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 that was approved by voters in 2024.

At a Jan. 12 workshop, district officials said GISD was projected to face a $1.75 million budget shortfall in fiscal year 2026-27 if both campuses opened 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, district officials said.

By not opening any new schools in August, GISD is projected to realize a $1.86 million budget surplus next fiscal year, according to district documents shared at the Feb. 2 meeting. Opening Ames Elementary and Middle School No. 5 in the fall of 2027 will cost the district an additional $6.3 million in staff salaries, resulting in a projected $1.1 million shortfall in fiscal year 2027-28, interim Chief Financial Officer Kenneth Adix said.

The proposed budgets do not include pay raises for staff over the next three school years.

The district is still planning to open its fourth high school in the fall of 2028. GISD could choose to initially open the campus to ninth grade students before adding additional grade levels, a GISD spokesperson said.

What else?

GISD may ask voters to approve a $0.07 per $100 valuation increase to its maintenance and operations tax rate by calling a VATRE in November.

The district’s maintenance and operations tax rate is currently lower than some surrounding districts, including Round Rock, Pflugerville, Hutto, Leander and Liberty Hill ISDs, Adix said.

If voters approved an overall tax rate of $1.1206 per $100 valuation, GISD is projected to see a $5.3 million budget surplus next fiscal year followed by a $827,000 surplus in FY 2027-28. By FY 2028-29, the district would face a $3.8 million shortfall after receiving additional funding from the VATRE.

The district could provide a 2% pay raise for staff next school year totaling $3 million and a 1% raise costing $1.5 million in FY 2027-28, Adix said. GISD may need to consider raising class sizes at the middle and high schools and eliminating block scheduling whether or not the VATRE passes, district officials said.

Under the new tax rate, homeowners could expect to pay around $217 in additional property taxes next fiscal year based on a median home value of $450,252, according to GISD data.

School board President James Scherer said the district has exhausted ways to improve its budget before potentially going to voters for a tax rate increase. This fiscal year, the district made $3.73 million in budget cuts across campuses and district departments, including athletics and special education, to adopt a balanced budget.

“The state has failed to act consecutively,” Scherer said. “We can no longer hope and count on those guys doing something in the positive direction for public education, and so now it's, ‘What's the community's stomach and appetite to embrace public education?’”

The background

GISD has seen a slowing in its projected enrollment growth. In December 2023, the district was estimated to start the 2026-27 school year with 14,491-14,817 students, according to GISD data. Now, GISD is projected to enroll 14,095-14,201 students next school year.

The district went from gaining around 500 or more students each school year to 100 new students this school year, Padavil said.

Texas public schools receive funding based on the average number of students that attend class each day. By enrolling around 100 new students each school year, the district would bring in about $1 million in new revenue per year, Adix said.

Next school year, the district is considering opening enrollment to students living outside of GISD’s boundaries at campuses with available space. GISD is encouraging interested families to complete an online form. Families who complete the interest form will receive more information about eligible campuses and grade levels, application timelines, and selection criteria, according to district information.

The district may also begin allowing families living in the district to transfer between campuses, a GISD spokesperson said.

“While bond funds pay for construction, they do not cover the operational costs of opening a new campus, including staffing,” Padavil said in a news release. “With slowing enrollment projections for the year ahead, it is not fiscally prudent to invest in the overhead of additional staff and resources at this time. Delaying the opening of two schools for one year is a fiscally conservative and responsible decision that allows us to preserve the ability to fund compensation increases for staff and maintain a balanced budget.”

Going forward

GISD has been working to rezone elementary and middle school campuses over the past few months. The district will now only rezone Wolf Ranch Elementary to address overcrowding, according to district information.

At the Feb. 2 meeting, the board approved a new bell schedule for next school year that will shorten the instructional day by five minutes and lengthen the academic calendar by two school days for students. The change is estimated to reduce the number of bus routes needed, saving the district around $750,000 in costs, Adix said.