As Frisco ISD continues to grow it will face several fiscal challenges in the coming years because of loss of state funding.
FISD CFO Kimberly Pickens told the board that though the budget looks good for the 2016-17 school year, 2017-18 is when the district can expect a loss of state funding of $30 million.
The projected loss of funding is because of the elimination of the Additional State Aid for Tax Reduction, a state fund established in 2006 that is set to expire in 2017.
To prepare for that revenue loss, the district could look at different options—including reducing the hiring rate, increasing class size or calling a tax ratification election, or TRE, to increase the property tax rate.
Pickens also said the enrollment is projected to increase by 59,743 students by 2017. Enrollment is expected to increase to 62,836 students by 2018.
While the district’s revenue is expected to increase to $453.9 million in 2017-18 because of the state changes, the net revenue per student will decrease from $7,894 in 2016-17 to $7,597 in 2017-18.
