District officials presented the proposed budget cuts, totaling $5.28 million, at a Jan. 27 special meeting. The measures come as LHISD is projected to face a growing budget shortfall and deplete its fund balance in future years.
“[Budget] reductions are absolutely paramount when we look at being able to maintain an adequate fund balance and maintain the stability of the district,” Chief Financial Officer Rosanna Guerrero said.
Zooming out
LHISD is aiming to make $5.5 million in cuts to pass a balanced budget of $99.5 million in expenditures and revenue for fiscal year 2025-26, Chief of Schools Travis Motal said.
At a Jan. 27 meeting, district officials proposed making the first phase of budget cuts, which would include eliminating 66 staff positions as well as reducing campus budgets by 10% and department budgets by 12%.
District officials said they have seen an increase in expenses amid growing enrollment and opening new campuses. Meanwhile, the state's basic allotment of funding per student has not increased since 2019, and LHISD has experienced reductions to state and federal funding.
Zooming in
The district proposed cutting 43 non-classroom positions, some of which include:
- 14 emergent bilingual paraprofessionals
- Seven STEM elective teachers
- Seven gifted and talented teachers
- Five behavioral interventionists
Of the $791,427 in proposed department cuts, the district’s special education department would see the largest reduction at $201,000 followed by a $105,000 cut to the technology department and a $79,600 cut to the maintenance department, according to district documents.
What else?
As LHISD welcomes around 800 new students next school year, the district is looking at increasing class sizes from:
- 22 to 23 students per teacher for third, fourth and fifth grades
- 22-23 to 25 students per teacher at middle schools
- 23-24 to 27 students per teacher for high school core classes
The context
LHISD adopted its first budget shortfall in recent years at $2.5 million for FY 2023-24 and is projected to face a $7.5 million budget shortfall for FY 2024-25.
The district made $2 million in cuts to its budget this fiscal year, including reallocating, freezing and reducing positions; increasing class sizes; and cutting campus and department budgets. In November, the district called a voter-approval tax rate election, or VATRE, during which voters failed to pass an increase to the district’s tax rate.
The district is now seeking to end the fiscal year with a $5 million deficit, which would leave LHISD with a fund balance of $10 million, Guerrero said.
“That is not sustainable for being able to sustain a higher deficit in future years,” she said about the fund balance amount.
Without making any budget cuts, the district is projected to face a $17.7 budget shortfall in FY 2025-26 and a $26.7 million shortfall in FY 2026-27, which would deplete its remaining fund balance. In 2026, the district is planning to open its eighth elementary school, third middle school and the official campus for its second high school.
What they’re saying
District officials have expressed frustration over a lack of state funding amid increasing costs and inflation.
This fiscal year, the district is projected to spend $6.3 million beyond what it receives from the state for special programs, including $3.38 million in additional expenses for special education, and $1.56 million for safety and security.
“It's just sad that we're in this position,” Place 1 board member Chris Neighbors said. “It infuriates me that the state and the naysayers say, ‘Oh, it's easy, just figure it out,’ because this isn't junk. These are people. These are people that help my kid. These are people that help every one of our kids and grandkids.”
Also of note
LHISD may consider taking the following measures to lower expenses:
- Increasing fees for facility rentals and programs
- Implementing activity fees for athletics and fine arts
- Offering sponsorship opportunities, including advertisements and naming rights for donors
LHISD is hosting a town hall meeting with community members to discuss its budget, among other updates, at Tierra Rosa Elementary from 6-8 p.m. Feb. 10.
The board of trustees is expected to vote on the initial phase of budget cuts and review a second phase of cuts at its Feb. 18 meeting.
The district may consider future budget cuts before adopting its FY 2025-26 budget and tax rate in August, Guerrero said.
