Allison Davenport, RISD’s executive director of finance, provided an update on the 2025-26 fiscal year to set a foundation for the FY 2026-27 budget process.
The specifics
Davenport said the district is currently expecting close to $8 million more in revenue than the FY 2025-26 budget planned for, due to an increase in state funding. However, she said the district is also seeing reductions in other revenue sources this year.
RISD expected a $28.5 million shortfall in the FY 2025-26 adopted budget, but due to the revenue increase, Davenport said the district now expects to see a $27.5 million shortfall.
Enrollment continues to decline in RISD, according to district data. Texas bases school funding on attendance, so a decrease in students could result in budget reductions.
However, district has seen an increase this year in some student populations that generate additional funding—economically disadvantaged students, special education students and students with dyslexia.
What it means
Superintendent Tabitha Branum said RISD will still have a deficit budget in FY 2026-27, and any future raise or cost increases will also increase the shortfall.
“We’re trying to be very aggressive and capturing savings whenever we can to bring down this year’s deficit,” Branum said. “We know that if we are going to increase compensation, that we’re going to have to find some additional efficiencies.”
Branum said the district is also waiting for clarity from the Texas Education Agency on a new funding model for special education that she said will likely bring increased revenue.
“I know that if [district staff] decide to bring forward increases in pay, that we will have to consider how much is tolerable in a deficit budget,” board member Megan Timme said. “While I know that there are cost savings that need to be had, I would hate to see that being one.”
What’s next
Branum said teacher compensation is a priority heading into the FY 2026-27 budget process. The board is set to receive presentations throughout the spring as district staff works to develop the budget, including information on potential budget reductions.
“We’re not alone in seeing enrollment declines. We’re not alone in seeing the challenges of our budget,” Branum said. “I do think it’s important to know that this is a collective experience that many public education organizations are going through, not just in the metroplex but across the state.”
The board is set to adopt the new budget in June.
