Expenses for the FY 2024-25 budget are expected to be $363.44 million, while revenue is expected to reach $343.14 million—leaving a shortfall of $20.3 million—according to a preliminary budget discussion held during a June 17 board meeting.
“We’re looking at a $20 million deficit, which is hard to swallow,” PISD Chief Financial Officer Michele Seese said.
In spite of budget restraints, district officials approved a 3% raise for teachers and staff in FY 2024-25.
The gist
Here is a breakdown of the preliminary budget:
- $343.14 million in revenue
- $363.44 million in expenditures
- $20.29 million shortfall
The district’s tax rate for FY 2024-25 is estimated to be $1.2552 per $100 valuation. This is a decrease from the FY 2023-24 rate of $1.2575 per $100 valuation.
Budget explained
School district budgets are based on the state’s funding formula, which has not changed since 2019, Seese said. The basic allotment for schools is $6,160 per student.
“I don’t think anyone in this district would want their kid only educated with $6,160 per school year,” Superintendent Holly Ferguson said.
Inflation is also affecting the budget as the costs for some services are reaching 22% in price increases, Seese said.
Expenditures for the FY 2024-25 budget are $57.43 million higher than FY 2023-24. This is due in part to the district adding 584 staff positions since the FY 2023-24 budget was adopted, Seese said.
Next steps
District officials will continue to monitor enrollment numbers and staffing vacancies. Department budget requests will also be reviewed and refined before budget adoption.
In July, district officials will present the projections for debt service and food service budgets. The district will receive the certified property values of Collin and Denton counties on July 25.
Trustees are set to adopt the budget and tax rate in August.
