More than $9 million more than the previous fiscal year, the FY 2024-25 budget is the fifth consecutive shortfall budget adopted by the district. The FY 2023-24 budget included a shortfall of nearly $15 million.
“This budget continues our work to utilize the district’s limited resources consistent with our ... [goal] of student academic growth,” Superintendent Tabitha Branum said in a news release.
The context
Throughout the year, Branum has said many of the district’s budgetary issues stem from a lack of increase to public education funding from the Texas Legislature since FY 2018-19 and from declining student enrollment, which affects the per student allotment RISD receives from the state.
In addition, district officials previously said RISD is expecting to see operational costs increase by more than $6 million in FY 2024-25 due to increases in insurance costs, special education staff increases, utility cost increases and unfunded state mandates, such as required security officers at all campuses.
“As the costs of operating a school district continue to rise due to ongoing inflation, it’s important to keep reminding our stakeholders that we have not received a per-pupil funding increase in the basic student allotment from the state Legislature since before the pandemic—six years,” Branum said.
The FY 2024-25 shortfall will be funded through the one-time use of the district’s fund balance, which is similar to a savings or checking account. The fund balance is used to pay district expenses, such as payroll and utilities, every month when property tax collections and state funding are not enough to cover operating costs.
A closer look
Despite the shortfall increasing from the previous fiscal year, district officials said the FY 2024-25 budget includes $12.8 million in cost reductions and efficiencies. Those come in the form of the consolidation of four elementary school campuses—Greenwood Hills, Thurgood Marshall, Springridge and Spring Valley—in the 2024-25 school year, which was approved in May. Other reductions include cuts to central and support staff.
District officials said they intend to look into other cost-saving measures that were recommended by the community budget steering committee—which was created in July 2023 to help prioritize financial resources—in future budget planning discussions that include:
- Opening enrollment to students outside the district
- Adding a $0.03 increase to the district’s maintenance and operations tax rate that would need to be approved by voters
- Implementing a new staffing framework
While the district has made efforts to reduce costs, trustees also approved compensation increases for teaching and nonteaching staff that are expected to cost RISD about $18 million annually.
Under the new compensation plan for FY 2024-25, which is aimed at attracting and retaining talent, the starting salary for new teachers will be $61,000. Also, instead of a traditional compensation structure that increases pay by a certain percentage for each year of experience, the new plan provides a $500 salary increase for each year of experience below 10 years and a $1,000 salary increase for each year above that for teaching staff.
In addition, many other nonteaching staff would see a 3% pay increase, and custodial staff would have a starting pay of $15 per hour.
“This budget process has been bittersweet,” Branum said. “The clear highlight is being able to finally reward our experienced teachers at levels they deserve, and that positions our district among the most appealing in North Texas in attracting experienced, talented educators.”
Also of note
According to the district’s website, other highlights of the FY 2024-25 budget include:
- An anticipated state-set operating tax rate of $0.7899
- A debt service tax rate of $0.35
- Continuing the local optional homestead exemption
