Georgetown ISD will finish building a new $106 million middle school and a $66.57 million elementary school this summer, yet these campuses will not welcome students for an additional year.
Funding for Jessie Daniel Ames Elementary and Middle School No. 5 was approved by voters in the district’s $649.5 million bond election in 2024.
In February, Superintendent Devin Padavil announced his decision to delay the opening of Ames and MS 5 until August 2027 as the district prepares for enrollment growth to slow over the next 10 years.
"I don’t believe in gambling with the community’s money," Padavil said. "It was more important to me to be fiscally conservative."
The overview
Padavil’s decision to delay opening Ames Elementary and MS 5 comes after the district received new demographic data in November that projected slower enrollment growth over the next decade.
An August demographic report projected the district will have 19,900 students by the 2034-35 school year. By the time the district received updated projections in November, that number had shrunk by 2,500 students.
District officials say the change is due to a slowed housing market and high interest rates.
Delaying the new school openings will allow GISD to avoid a budget deficit for fiscal year 2026-27 and limit budget cuts.
“If we open, it’s almost irresponsible because that money has to come from somewhere,” school board President James Scherer said. “You can either take it out of fund balance and go into a deficit ... or you have to make a decision that actually impacts students.”
Additionally, GISD is considering calling a tax-rate election this fall to fund teacher raises.
The context
While Georgetown has been a fast-growing community for many years, the area has recently seen a decline in the number of new homes built and sold, a spokesperson for Zonda, the district’s demographer, said in an email.
In the Austin metro area, the number of new homes sold has declined 25.4% since last year, according to Zonda information. Homebuyers have been more cautious due to higher interest rates, economic uncertainty, and increased costs for insurance, taxes and home maintenance, the Zonda spokesperson said.
Because of new homes having high interest rates, Scherer said he believes fewer young families are moving out of their starter homes, while older couples are less likely to downsize after their children graduate.
The district’s enrollment has also been impacted by expanded alternative education options, including charter schools, homeschooling and neighboring districts, according to Zonda information. This fall, the state’s $1 billion education savings accounts program will begin awarding selected families public dollars for private school tuition.
“We have to behave as if we are a choice for families,” Padavil said. “We’re going to have to continue to ensure ... that if your child comes to school here, they’re going to get a high-quality education.”
The impact
If GISD opened Ames Elementary and Middle School No. 5 in August, the district would have faced a $1.75 million budget shortfall, including $6.3 million in new staff salaries.
Although construction was funded by the 2024 bond, the number of students enrolled under the updated projections would not cover the cost of running the new campuses, Padavil said. Texas public school districts are funded based on the average number of students who attend school each day.
Community member Suzie Kovach, a former Texas teacher who serves on GISD’s Community Action Committee, said she believes delaying the opening of the campuses is best for GISD. Parent Ami Mendoza said it is more responsible for the district to avoid incurring further debt by not opening the schools in August.
While GISD halted its districtwide rezoning process, the board approved new attendance zones to relieve overcrowding at Wolf Ranch next school year. District officials said the delayed campus openings will not affect class sizes.
The approach
GISD officials have discussed calling a November election to raise the district’s tax rate by $0.07 per $100 valuation, Padavil said.
The additional revenue may help the district maintain a balanced budget and raise teacher pay.
Last fiscal year, the district made $3.73 million in cuts to balance the budget. The district has historically tried to cut expenses that don’t directly impact the classroom, but now, any budget cuts are “painful and noticed by kids and teachers,” Padavil said.
“If our school district is one of the cornerstones of our community, then we have to start to ask ourselves, what is the investment we want to make in Georgetown?” Padavil said.
Delaying the opening of Ames Elementary and Middle School No. 5 will give the district more time before needing to potentially increase class sizes, reduce programs or undo block scheduling at the high schools, Scherer said.
Mendoza said she would be against a tax rate increase as her annual property tax bill rose by $900 over the last year amid higher property appraisals. Higher property taxes could make it harder for people to own homes in the area, she said.
Going forward
In the 2027-28 school year, McCoy Elementary Principal Emily Fraser will become the principal of Ames Elementary. Michael Coyle, a former Austin ISD middle school principal, will work with GISD in an administrative role next year before leading Middle School No. 5 in 2027, Scherer said.
The district still plans to open High School No. 4 off DB Wood Road in August 2028. The new high school will relieve overcrowding at Georgetown and East View high schools.
Scherer said he believes the decision to delay opening the campuses does not negatively impact students. GISD will need to open all three campuses funded by the 2024 bond before calling another bond election, Padavil said.
Moving forward, Padavil said he wants to achieve high academic outcomes and plan for growth conservatively.
