Clear Creek ISD is projecting a $22.8 million shortfall for the 2026-27 fiscal year caused by drops in state and local funding due to decreased enrollment.
The details
CCISD, at its Aug. 17 meeting, discussed the district’s sizeable shortfall in the proposed $432 million budget, which CCISD Chief Financial Officer Alice Benzaia said was caused by a $16 million drop in state and local funding due to the loss of approximately 1,000 students.
To cover the gap, the district plans to use its $39 million capital contingency fund, Benzaia said.
By the numbers
To tighten the budget, the district eliminated 77 positions through attrition, saving $5 million, Benzaia said. However, the savings were offset by a $7.5 million salary increase for employees and a $900,000 increase for the Galveston County security contract.
Thanks to a state allotment for coastal Texas school districts, CCISD was awarded over $4 million, which the district will use to offset property insurance costs, Benzaia said.
What it means
CCISD is projecting to maintain a flat total tax rate of $0.969 per $100 valuation of a home, unchanged from the previous year’s tax rate.
Projections show debt service reserves dropping from 34% to the board-mandated minimum of 10% by fiscal year 2029-30, meaning future bond elections will likely require asking taxpayers for additional pennies, according to a presentation given at the meeting.
Benzaia said the district’s ability to pass bonds without increasing the tax rate is likely coming to an end.
Looking ahead
CCISD will hold a public hearing Aug. 24 to discuss the proposed 2026-27 budget and tax rate, Benzaia said. The board will formally adopt the tax rate at its Sept. 28 meeting.
