Hutto ISD trustees passed a $122.06 million budget of planned expenditures for fiscal year 2024-25, 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 $1.2052 per $100 valuation for FY 2024-25, which begins July 1, during a June 13 hearing on the budget and tax rate. This rate is $0.023 lower than the FY 2023-24 tax rate of $1.2075.

The tax rate will fund a planned operating budget of $122.06 million for FY 2024-25. 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 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 have 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 district administrators had identified the following reductions in expenditures:

• 10% reduction in all nonpayroll budgets
• $345,654 reduction in software costs

What's next?

Trustees will ratify a final tax rate at a future meeting in August.