The overview
School district funding from the state is dependent upon an attendance-based policy where schools are given money per student, called the basic allotment. Texas lawmakers last increased the basic allotment in 2019 to $6,160. However, Texas is still more than $4,000 below the national average in per-student funding, according to Raise Your Hand Texas. In addition, inflation has gone up 22% since 2019, said Bob Popinski, senior director of policy for Raise Your Hand Texas.
Due to these circumstances, Dallas-Fort Worth-area school districts such as Frisco ISD and Plano ISD have been forced to adopt deficit budgets, according to previous Community Impact reporting. With both of the districts’ deficits in the $30 million range, both districts have had to dip into their fund balances—also called rainy day funds—to cover them. However, officials from both school districts have said dipping into fund balances to cover these massive budget shortfalls is impossible to sustain over time.
Zooming in
David Johnson, assistant superintendent for financial services for CISD, said that while he isn’t aware of any other districts in the state that have adopted an annual balanced budget policy, it makes sense to do so. He added Carroll ISD is in a position to absorb a budget deficit by selling surplus property. However, future deficit spending would either need to be absorbed by fund balances or by asking CISD voters for a voter approved tax ratification election, or VATRE, much like neighboring Grapevine-Colleyville ISD did during the Nov. 5 election.
Johnson said that the district’s fund balance is approximately $49 million, which is “well above the state-wide average,” and “is a good position to be in these days.”
What's next?
While Board President Cameron Bryan talked about the district being in a position to be able to bridge the gap as elected officials prepare for the upcoming 89th Legislature, he said adopting a deficit budget doesn’t make sense.
“Boards around the state and previous boards in Carroll ISD have regularly passed deficit budgets, and I think that’s a really poor practice,” Bryan said. “School districts get in trouble when they spend more than they have. If [the policy states] the board cannot under any circumstance pass a deficit budget, it protects our community. It’s our fiduciary responsibility to be fiscally responsible with our money.”
This item was for discussion purposes only and no action was taken. However, Bryan did say he would like to see it on agenda for the board’s next meeting.
