The surplus comes as the district will change its fiscal year start date from Sept. 1 to July 1. Despite the revenue increase, LTISD is expected to continue experiencing financial constraints amid a $6 budget shortfall this fiscal year and a projected $3.68 million shortfall in FY 2026-27, according to a presentation from a Jan. 15 board of trustees meeting.
The update
In May, the board of trustees voted to change the district's fiscal year start date from Sept. 1 to July 1 beginning in 2026.
Under the new schedule, FY 2025-26 will begin Sept. 1 but end June 30 ahead of FY 2026-27 beginning July 1, said Pam Sanchez, assistant superintendent for business services who is serving as LTISD's acting superintendent. This will allow LTISD to receive 12 months of revenue for 10 months of expenditures, resulting in a one-time payment of $10 million, Sanchez said in July.
Next fiscal year, LTISD will add nearly $5.07 million to its fund balance for a total fund balance of $40.2 million, which is above its recommended fund balance amount of $29.5 million, according to district documents. If the district were not receiving the $10 million payment, LTISD would face a $5 million budget shortfall next fiscal year, Sanchez said.
What else?
The projected budget for FY 2025-26 includes a 1% pay raise for staff totaling $775,000. In June, LTISD approved its lowest compensation increase for staff in over a decade: 1% for FY 2024-25.
At the Jan. 15 meeting, Place 2 board member Lauren White said it was difficult to give staff members a 1% raise this school year amid the rising inflation and cost of living in the area.
“It’s just not enough, and it’s not what our teachers deserve and our staff deserve,” White said. “I don’t want to be sitting here in this spring making that same decision.”
The preliminary FY 2025-26 budget did not include any new positions beyond those needed for enrollment growth, Sanchez said. LTISD’s budget advisory committee will evaluate potential budget reduction strategies to pass a more balanced budget going forward, she said.
Looking ahead
LTISD is expected to adopt a budget with a shortfall of $3.68 million in FY 2026-27, according to district documents. The FY 2026-27 budget may include startup costs for Elementary School No. 8, if the district chooses to open the campus in August 2027, Sanchez said.
The district’s projections for future fiscal years were based on the state’s current school funding model that allocates districts $6,160 per student, she said.
With the 2025 legislative session underway, district officials will track bills and advocate for the district’s legislative priorities at the Capitol, Sanchez said. One of LTISD’s priorities includes raising the basic allotment of state funding per student, which has not increased since 2019, by $1,000.
