The budget’s general fund plans for nearly $185.3 million in revenue and $184.82 million in expenses, according to a budget presentation. The budget was constructed with plans for a voter-approval tax ratification election, or VATRE, in November that would ensure a balanced budget for the fiscal year. If the VATRE fails, the district could face a $5.5 million budget shortfall, according to officials.
Budget explained
The FY 2024-25 budget is made up of three separate budgets that present an overall financial plan for the district.
- General fund
- Debt service fund
- Child nutrition fund
GCISD’s budget plans a nearly 3% increase in general fund expenditures during FY 2024-25. Officials estimate the district spent nearly $180 million in fiscal year 2023-24. Instruction costs, recapture payments and maintenance costs are the largest expenses budgeted for by the district.The district also anticipates a boost in local tax revenues if a VATRE is passed by voters in November. If approved, GCISD would collect an additional $6 million in property taxes, and the budget would end the year with a $471,531 surplus.The general fund’s revenue plans for the additional $6 million. If the VATRE does not pass, district officials will consider different options to close the funding gap.One more thing
GCISD’s proposed tax rate for the upcoming fiscal year is $0.9014. The tax rate is composed of two separate rates that contribute to the general fund and debt service fund. The proposed tax rate is about 2.5% lower than last fiscal year.The current proposed tax rate is based on estimated property values the district had at the time that budget was constructed, Chief Financial Officer Derick Sibley said. The district won’t receive certified values from Tarrant County until July 25.
The proposed tax rates are going to change based on the certified values received, he said. After GCISD receives certified values, officials will submit that information to the Texas Education Agency, which will then assign the district a maximum compressed tax rate.
Once the maximum compressed tax rate is set, the district can build on that rate with board-approved pennies and a tax ratification election, Sibley said.
“That’s the whole starting point,” he said of the maximum compressed tax rate.
The VATRE expected in November would boost the general fund side of the tax rate by 3 additional pennies. If approved, the additional money would not be subject to recapture.
The VATRE must be called by Aug. 19 to make it on the ballot for the Nov. 5 election.
