“We would see a state funding decline of almost $16 million, while also seeing our recapture go up by about $1.5 million,” Wrehe said.
By the numbers
Current enrollment projections for 2025-26 fiscal year put total enrollment at 46,402, down roughly 1,700 from 2024-25 fiscal year’s 48,100, according to Wrehe’s report. The drop in enrollment is nearly double what the district anticipated in their March meeting.
School districts receive funding from the state based on average daily attendance, according to the Texas Education Agency, so declining enrollment impacts a district’s budget.
Rising home values caused a $1.5 million increase in the district’s recapture payment, according to Wrehe’s report. Recapture is a system designed to balance funding needs in school districts across the state, redistributing excess property tax collections to less wealthy school districts.
Zooming out
In addition to the state funding loss and higher recapture payment, the district plans to make other budget adjustments, like adding some contract transportation workers to the payroll, raising pay rates for staff and finding roughly $11 million in savings, Wrehe said. These losses and adjustments, combined with fiscal year 2024-25’s $4.1 million shortfall, puts a projected $24.4 million shortfall on the district’s 2025-26 budget, according to Wrehe’s report.
If House Bill 2 passes, which would increase the state’s per-student allotment, the fiscal year 2025-26 shortfall could come down to $2.7 million, Wrehe said.
What's next?
The district will provide budget updates at each work session for the rest of spring, Superintendent Lori Rapp said during the session. Wrehe will also provide a budget update in July with the district's certified home values following the district's property value study, Rapp said.
