Hutto ISD is proposing a $122.06 million budget for the 2024-25 fiscal year, with a projected shortfall of $3.5 million amid increased costs of operation as well as what staff and officials describe as inadequate state funding.

What happened

District staff shared a proposed budget breakdown, including a total tax rate of $1.20520 per $100 of valuation for the 2024-25 budget year, which begins July 1, during a June 13 hearing on the budget and tax rate. This rate is $0.0230 lower than the previous year's tax rate of $1.20750.

The tax rate will fund a planned operating budget of $122.06 million for the 2024-25 fiscal year. Staff shared a projected $118.54 million in revenue from local, state and federal sources for this budget year as well.

Included in the budget is a 4% compensation increases for teachers as well as an average of 2% pay increase for other employees within the district.

It also includes an estimated $850,000 to be repaid to the state in recapture, staff shared in April.

The details

Similar to other school districts across the state, HISD staff and trustees highlighted several areas of struggle when it comes to the district's budget:
  • 19% increase in inflation since 2019
  • No increase to basic allotment funding from the state since 2019
  • Meeting safety requirements included in HB3
  • Reduced reimbursement for special education services
  • 13% increase in cost of covering health insurance costs for employees
To reduce the projected budget shortfall, HISD Chief Financial Officer Caleb Steed shared that district administrators had identified the following reductions in expenditures:
  • 10% reduction in all non-payroll budgets
  • $345,654 reduction in software costs
What's next?

Trustees will take action on the budget proposal at its June 27 board meeting.