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.
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.
The backstory
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.
What they’re saying
“[The balanced budget policy] holds this board and future boards to the commitment that we will be seeking year in and year out a balanced budget,” Superintendent Jeremy Glenn said.
“Something that’s very important to our board is that the district always needs to find a way to present a balanced budget so that we’re able to continue our fiduciary responsibility and commitment to our community,” Board President Cameron Bryan said.
