The budget deficit has decreased approximately $190,000 since the district's original projected deficit was presented at the April 14 special session.
Additional discussions will occur to balance the budget before the final budget will be presented June 16 for board approval, Johnson said.
What’s happening?
According to Johnson's presentation, the district has increased the projected revenue for the 2025-26 fiscal year from $140.28 million to $140.68 million since the last update, or a $400,364 increase.
District staff discussed the budget with each department to refine the money being spent, which has increased revenue marginally, Johnson said.
Expenditures have also increased by $205,937 since the April 14 report, with district staff expecting to spend $141.97 million for the next school year.
"We've worked hand-in-hand with [human resources] and we've refined our position control documents, identified the positions [and] reduced and streamlined our staffing through the zero-based budgeting process," Johnson said.
The increase in expenditures was due to continued discussions with departments and refining the numbers, Johnson said.
"Every year, this board, in coordination with [Superintendent Brad Schnautz] and his entire team, work diligently to minimize any impact that this budget situation has on our community, in our classrooms [and] at our schools," Trustee A.J. Pontillo said.
Diving deeper
The district discussed the recent developments in the 89th Texas Legislature, including the senate's changes to House Bill 2, which was left pending in the committee May 15, Community Impact previously reported.
The proposal would increase the basic student allotment, which determines how much money the district receives for student attendance, by $55, down from the $395 that was approved by the House of Representatives April 16.
The proposed substitute HB 2 bill would give GCISD an additional $6 million in funds, but $4 million of that is required to go to increasing the salaries of classroom teachers who have three or more years of experience, Johnson said. This does not include district staff like counselors, principals, custodians and librarians.
Additionally, Johnson said that the bill does not fund teacher benefits, meaning that the district will have to pull from the $4 million that the state would give if the bill is passed.
Benefits would make up about 10% of the $4 million, which would bring the total daily operational costs from state funding down to $750,000 under the committee substitute for HB 2.
"It doesn't give us the discretionary flexibility to use those monies where we need and to pay all of our people and give them the raises that they need," Schnautz said. "With the committee substitute the way it is, it's not sustainable for us."
Texas lawmakers have until the end of the legislative session June 2 to come to a decision on the bill.
Under the previous version of HB 2 passed in the House, GCISD predicted the bill would raise the basic allotment funding for the district by $5.95 million, giving the district $146.23 million in total basic allotment funding.
With the current state law, the district expects $140.3 million in basic allotment funding. The state hasn’t raised the basic student allotment from $6,160 since 2019.
