Montgomery ISD discussed an impending deficit of $6.9 million expected for the 2018-19 school year at the district’s board meeting Tuesday, June 19.
MISD officials said the current proposed budget for the 2018-19 school year projects a deficit of about $2.9 million in operation costs along with $4 million in recapture funds to the state, for a total deficit of about $6.9 million.
District officials said the deficit is due to the $4 million recapture payment, a cut in state funding for New Instructional Facilities Allotment down from $1,000 per student to $200, additional staffing for student enrollment growth, opening two new campuses and a 2 percent cost-of-living adjustment for all employees as well as operational cost increases in security, transportation, custodial and utility departments.
To project the 2018-19 budget, the district assumed the following:
• Enrollment is projected to increase by 4 percent to 9,175 during the 2018-19 school year.
• Attendance is expected to increase by 1.25 percent to 96.25 percent.
• Property values are expected to increase by 6 percent.
• The tax rate is not expected to increase.
To balance the budget and make up the nearly $7 million deficit, MISD is planning to:
• Use Limited Open Enrollment to increase the number of students.
• Change the budget fiscal year to July 1 through June 30.
• Reduce all campus and departmental budgets by 20 percent.
• Make additional reductions in maintenance and technology budgets.
• Reduce transportation routes and eliminate the district’s employee shuttle program.
• Reduce non-classroom campus-level positions including four librarians and instructional paraprofessional positions.
• Eliminate secondary coaching positions.
• Eliminate administration positions, including assistant principals and counseling positions.
• Postpone the implementation of new programs and curriculum.
A special meeting budget workshop is scheduled for Aug. 7 to review the budget and set the date, time and place for a public hearing on the budget and tax rate. Superintendent Beau Rees is scheduled to present the finalized 2018-19 budget for approval at the Aug. 21 regular meeting.