Superintendent Tracy Johnson gave Keller ISD board of trustees a report on the district’s 2024-25 budget Jan. 25 that included a $28 million shortfall.

The details

Johnson said that conversations about balancing the budget have been going on since August and that the thought of having to make staffing cuts weighed heavily on district leaders.

“If we were any other organization, we would just cut positions,” Johnson said. “That would be difficult for us because we are in the people business. We understand the impact that every single one of these efficiencies we are having to make impacts people that do great work for our kids.”

Johnson alluded to the fact that the Texas Legislature was in session for 246 days and representatives passed just 10% of what was put in front of them with regard to education.


She added that with an unprecedented surplus of more than $40 billion—which includes a $18.29 billion projected balance combined with the state’s $23.77 billion rainy day fund—the state could fix the school financing problem today with a fifth special legislative session.

“Our state doesn’t care about our kids,” Johnson said. “The cavalry isn’t coming. Keller ISD has to fix our problem. If we don’t get this fixed right now this year, we run the risk of not having a Keller ISD.”

Keller is not alone with regard to its budget woes. Johnson referred to other districts in North Texas that are in a similar situation when it comes to deficits:
  • Carroll ISD (serves Southlake): $6 million deficit
  • Fort Worth ISD: $50 million deficit
  • Lewisville ISD: $48 million deficit
  • Plano ISD: $24 million deficit
In an attempt to balance their budgets, district documents state that Carroll, Fort Worth and Lewisville ISD are planning administrative cuts. In addition, Carroll ISD is also proposing staffing and scheduling efficiencies. Lewisville is considering a voter-approval tax rate election, and Plano ISD is considering closing campuses.

Diving in deeper


Johnson alluded to two main reasons why school districts like Keller ISD are facing deficits: underfunded state mandates and inflation.

According to district documents, underfunded mandates include:
  • $26 million: special education program spending that exceeds state funding requirement
  • $11.5 million: full-day pre-K, teacher compensation, reading academies, counseling
  • $4 million: safety and security requirements above funding
Inflation has also had an impact on school funding. According to the Texas Education Agency, the basic allotment is the legislatively mandated apportionment of funds from the general revenue funds that goes to each school district to provide a basic level of education for that district’s residents.

The basic allotment per student is $6,160 and has not changed since 2019. According to the Consumer Price Index, average inflation has increased by 17% since August 2019. Johnson highlighted a few school costs that have increased since 2019 as well:
  • Fuel: 97% increase
  • Insurance: 204% increase
  • Utilities: 30% increase
“It’s a totally different world, but we’re still expected to operate on 2019 dollars,” Johnson said.

Johnson said that Keller ISD leaders have been trying to identify efficiencies since August. Johnson said that district leaders are counting on some efficiencies coming through attrition—for example, an administrative staffer retires and their position may not be filled—and by changing the responsibilities of certain positions.


Other efficiencies include:
  • Implementing zero-based budgeting for all district departments
  • Implementing centralized purchasing process for instructional materials, technology hardware and software
  • Moving from district-level support to campus support to provide intentional support for classroom teachers at high-need campuses
To help balance the budget, Keller ISD officials may need to dip into the district’s fund balance, which stands at $47.1 million for the 2022-23 school year. TEA recommends that the district’s fund balance for 2022-23 be at $84.3 million.

“One of our nonnegotiables is we are not eliminating programs for students,” Johnson said.