The latest budget update for Grapevine-Colleyville ISD predicts the district could end fiscal year 2025-26 with a balanced budget as the best case scenario, or a $1.4 million shortfall as the worst case scenario, Director of Finance Paula McBride said at the April 27 board meeting.
“The budget amendment brought before the board this evening indicates a $1.4 million deficit,” she said. “Since we don't receive our near final data from the state until September, the final amended budget should be kept at the worst case scenario so we are sure to stay within budget.”
McBride also gave an update on the proposed fiscal year 2026-27 budget, which will be brought forward for adoption by the board of trustees no later than June 30.
The overview
Investment earnings will not meet the FY 2025-26 budgeted amount due to a reduction in interest, McBride said. While district officials predicted a reduced interest when preparing the budget last spring, they did not know how much it would decline, she said.
Additionally, enrollment and average daily attendance are lower than originally estimated, but special population groups, which are English as a second language students, students with disabilities or students in foster care, will offset the difference, McBride said. The district receives state funding based on average daily attendance, which makes up 87% of GCISD’s total revenue, she said.
GCISD received $1.1 million in additional funds from the state due to a property value audit, McBride said.
The district’s largest expenditure, payroll, is expected to remain in budget, she said.
Diving deeper
District officials are working toward bringing a balanced budget for FY 2026-27 to the board of trustees for adoption in June and are currently projecting that that expenditures could exceed revenue by about $500,000 without factoring in any additional compensation or benefits for employees, McBride said.
Enrollment is expected to continue declining due to lower birth rates, charter schools, growing popularity of homeschooling and the new Texas Education Freedom Accounts Program, McBride said.
“As enrollment declines and tax revenue remains stable or increases, we will see an increase in recapture,” McBride said. “The [FY] 2025-26 projected final is $23 million, but with the anticipated decline in enrollment, recapture is expected to increase to $30 million.”
The district is looking to have a net savings of $3.2 million in staffing, which makes up 85% of the general fund’s expenditures, for FY 2026-27, Chief Human Resources Officer Kelly Mires said. The savings are being made through elementary campus consolidations, staff reductions to accommodate decreased enrollment and benefit savings. The district also added positions to support the increased enrollment of iUniversity Prep and the ASPIRE Academy.
“There are lots of different ways we can be creative, and I am certainly excited now more than ever to hear more from the revenue generating committee about ways that we can have some additive dollars to this budget going forward,” trustee Dalia Begin said.
Looking ahead
Appraisal districts will provide preliminary tax values in May, which will help the district estimate tax revenue, and the preliminary FY 2026-27 budget will be presented to the board in June, McBride said.
The budget will then be adopted no later than June 30, and in July, the district will receive certified tax values, she said.
In August, the board of trustees will accept the certified tax value, and in September, the board will adopt the tax rate.
“This is the first time in three years that I’ve actually been able to sit through this, and I was very excited about what the future looks like and for the work that you have done across the district to find ways that we can save,” trustee A.J. Pontillo said.
