The heightened $6 million shortfall comes amid lower student enrollment, the addition of new special education positions and community members protesting their property value appraisals, said Pam Sanchez, LTISD’s assistant superintendent of business services.
After approving a budget amendment at an Oct. 16 meeting, several board members expressed frustration over a lack of state funding.
“This is not sustainable for Lake Travis,” Place 5 board member Kim Flasch said. “This is not sustainable for any school district across the state for this to continue and for us to continue to educate our students the way that we need to.”
The breakdown
LTISD is projecting a $6 million budget shortfall after amending its FY 2024-25 budget, which was originally adopted in August with a $4 million shortfall. The budget amendment accounts for a net decrease in revenues of $800,000 and a net increase in expenses of $1.2 million, resulting in a $2 million increase to the projected shortfall.
Adjustments to the district’s revenues include:
- $1 million decrease in local tax revenue due to protest settlements, homestead exemptions and refunds filed after property values were certified in July
- $200,000 increase in the state’s Available School Fund
- $1.2 million increase in recapture due to enrollment being lower than prior projections
- $300,000 increase in payroll costs for three special education teachers and eight aides
- $300,000 decrease in payroll costs due to general fund positions being covered by federal funds
About 11,000 students are enrolled in LTISD despite the district budgeting to serve 11,315 students based on previous demographic projections, Sanchez said. The decrease of 315 students will result in a $1.2 million increase of the district’s recapture payment totaling $51 million.
Thousands of new homes planned for the district will no longer be built after Travis County residents voted to conserve around 2,000 acres in a November bond election, Population and Survey Analysts President Stacey Tepera said at an April 17 meeting. LTISD also opted to build its second high school with a lower capacity of 1,500 students due to updated enrollment projections.
Since the start of the school year, the district has hired three additional special education teachers and eight aides totaling $300,000, Sanchez said. Parents shared their concerns at recent board meetings after the district made $1.2 million in special education-related cuts to its initial budget proposal for FY 2024-25.
“I want our community to know that we are listening. We are hearing,” Flasch said at the Oct. 16 meeting. “We’re adjusting as we see the needs for our students.”
Stay tuned
LTISD board members will take an active role in advocating for students during the upcoming legislative session, school board President Erin Archer said.
The district wants to inform and engage community members around advocacy, and will finalize its legislative priorities in November or December, district officials said.
“We’re really going to need to activate ... our community engagement in this fight, because we can’t continue to take on $6 million deficits,” Archer said.
