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Editor's note: this story was updated to correct the adopted tax rate as $1.0397, which was previously published as $1.379.
The Lake Travis ISD board of trustees adopted the district's operating budget for the fiscal year Aug. 20, including nearly $5 million in additional state aid but a remaining $4.2 million budget shortfall.
The details
The adopted budget includes:
Starting next year, LTISD will adopt its annual budget in June and move to operating on a July 1-June 30 fiscal year as opposed to its current fiscal year of Sept. 1-Aug. 31.
Doing so will inject a one-time surplus of about $10 million into LTISD's fund balance by next June and better align campus and departments budgets prior to the start of school, said Chief Financial Officer Pam Sanchez said.
Taking a step back
House Bill 2, passed during the most recent Texas Legislative session, will provide LTISD with approximately $4.8 million in new funding to support legislative mandates and cover increases in goods and services due to inflation.
Some of the new funding includes:
The district will further save $4.4 million by reducing some positions through attrition, reducing non-payroll expenditures by 10% and reducing staff travel costs by 50% as first presented by Sanchez in July.
What else?
The board also adopted the 2025-26 compensation plan and tax rate during the meeting.
Alongside the HB 2 teacher retention allotment, LTISD's compensation plan includes a 1% salary increase for librarians, teachers with one to two years of experience, and other staff depending on their midpoint pay grade.
The adopted tax rate of $1.0397—consisting of $0.7122 for Maintenance & Operations and $0.3275 for Interest & Sinking—is the lowest tax rate in LTISD history, according to agenda documents.
