A late April budget projection for fiscal year 2025-26 shows Carroll ISD’s general fund could have a shortfall of $2.1 million. Chase Park, CISD’s deputy superintendent for business and finance, said he projects the shortfall could end up around $1.6 million.
Trustees received an updated look at the FY 2025-26 budget during the June 1 work session.
The overview
One factor in the general fund’s projected shortfall stems from tax collection revenues coming in under budget for FY 2025-26. Park said certified values came in below preliminary values and less tax revenue was generated because of the homestead exemption increase and tax freeze increases for seniors and individuals with disabilities.
CISD also paid $840,000 to settle its recapture payment to the state for fiscal year 2024-25, while also dealing with higher food, custodial and fuel costs, which contributed to greater expenditures in FY 2025-26, Park said. Other revenues, such as interest earnings and those from the aquatic program and facility rentals, were also under budget, according to Park’s presentation.
Additionally, there is a potential land sale that could close in late June. If the sale closes, it would net CISD $8.75 million in revenue, Park said.
CISD officials also plan a defeasance, a provision that allows borrowers to repay debt early without penalty or additional fees, for $10 million in bonds. Park said it would save the district $800,000 in FY 2025-26.
Diving deeper
When projecting revenue for fiscal year 2026-27, Park said district officials expect enrollment to drop by 200 students to 7,670. This would result in a funding loss of $1.7 million.
CISD officials expect an offset from the attrition of full-time employees to generate $1.2 million, along with further savings from the implementation of zero-based budgeting for nonpayroll elements of the budget.
Staff compensation adjustments could result in $2.4 million of additional expenditures for FY 2026-27, Park said.
Going forward
CISD officials plan to publish the notice for the meeting to discuss the budget June 4. Trustees are expected to adopt the FY 2026-27 budget at the June 15 meeting.
The tax rate will be adopted in August, which is after the district will receive its certified property appraisal values from the Tarrant Appraisal District.
