Chief Financial Officer Jennifer Land provided the board of trustees a preliminary look at the Fiscal Year 2025-26 budget during the April 3 board meeting.
Breaking it down
Based on the district's budget snapshot comparing the current FY 2024-25 budget to the FY 2025-26 budget, revenue is projected to grow to $294.3 million, up $4 million, but expenditures are estimated to increase to $307.8 million, up $10 million.
Expenditures per students are also expected to increase from $10,563 to $12,039. The result is a projected shortfall of $13 million.
Land said PfISD is moving from a Sept. 1-Aug. 31 fiscal year to a July 1-June 30 fiscal year, and doing so means the district could contribute a one-time infusion to its fund balance of nearly $20 million in FY 2024-25. However, by FY 2025-26, the fund balance would end at $78 million, down from $92 million.
What else?
Land also provided the following 2025-26 budget assumptions, which are parameters used to guide the budget development process. Land said these assumptions help set the tone of what the budget will look like, but are all estimates.
- Student enrollment is assumed at 25,573.
- Average daily attendance is assumed at 23,271.
- The average daily attendance rate is assumed at 91%.
- Property value growth is assumed at -7.0%.
- The tax rate is assumed at $1.10690, with $0.78690 for maintenance and operations and $0.32000 for interest and sinking.
Staff will know more once the preliminary property values are received later this month, Land said, but the values won't be finalized until July.
Diving in deeper
A variety of factors are driving the projected shortfall, Land said. A proposed 2% raise for staff is built into the budget, costing $4.9 million. Campus and department budgets are also anticipated to increase by 13% due to inflation.
The district is also expected to lose $1.6 million in State Health and Related Services funding, or SHARS. Over the last several years, PfISD has gone from generating about $7 million in SHARS revenue down to its budgeted $1.9 million, Land said.
Something to note
PfISD needs an additional $1,114 per student to cover rising costs, but that number would only cover costs from FY 2023-24, Land said.
"That is the last year from which we have full data," Land said. "This doesn't include the cost increase in 2024-25, or the projected increase in costs in 2025-26."
Land said staff are monitoring the current Texas Legislative session, but there are several "unknowns," including whether or not the basic allotment will be increased or if any changes will be made to special education and school safety funding.
Looking ahead
- April: finance committee will review the compensation plan
- May: board of trustees will review and possibly approve the compensation plan, and have another budget review
- June: board of trustees will adopt the FY 2025-26 budget
- July: final tax rate values will be received
- August: board of trustees will adopt the 2025 tax rate
