Montgomery ISD brings $2.8 million budget deficit to surplus for FY 2020-21, sets lower tax rate

After facing a predicted $2.8 million budget deficit for fiscal year 2020-21, Montgomery ISD officials have steadily whittled down this shortfall through various budget amendments and reductions. Board of trustees members said their goal was to achieve a balanced budget, but they went a step further when approving a budget with a slight surplus of about $30,000 at a Sept. 15 meeting.

“I appreciate the board’s leadership in wanting a balanced budget,” Chief Financial Officer Kris Lynn said in an interview Sept. 14, prior to the meeting. “I would like for the community to have a sense of, the board set a goal, and we achieved that goal.”

Reducing the budget deficit was a monthslong endeavor.

District officials identified a $2.8 million budget shortfall in May. Lynn joined the district April 1 as the new CFO, and together with other district officials, reduced the shortfall to $1.6 million. The budget was adopted June 30.

Since then, the district has eliminated its deficit through three amendments. The first amendment was approved in July and reduced the shortfall by $836,000, and another budget amendment was approved Aug. 18 for $472,000. The third amendment was presented to the board Sept. 15 for $400,000.

The amendments identified budget reductions by not filling vacant positions and reallocating others, and reducing the fuel budget due to less buses running, Lynn said Sept. 14.

In addition to balancing its budget, the board has publicly stated its goal of having MISD be the highest-paid staff in Montgomery County, although a timeline for this has not been announced.

Trustees also approved an effective tax rate of $1.2798, which is lower than FY 2019-20’s rate of $1.3075. Although this is a lower tax rate, if property tax values rise—which are set by the appraisal district—the overall taxes an MISD resident pays may still increase.