Montgomery ISD in talks to mitigate $6.9 million budget gap

MISD discussed the fiscal year 2018-19 budget deficit in a special meeting Tuesday night.

MISD discussed the fiscal year 2018-19 budget deficit in a special meeting Tuesday night.

The Montgomery ISD board of trustees discussed Aug. 7 a change order for the scope of renovation work at Montgomery High School as well as reviewed the proposed fiscal year 2018-19 budget, which district officials said is at a $6.9 million shortfall.

Operating costs are estimated to increase for the upcoming fiscal year. About $1.8 million is due to the cost of utilities for two new schools, another $2 million is for teacher salaries and increased staff for the new schools, and the remaining $4 million in costs is for the recapture payments owed back to the state because MISD is considered a property-wealthy district.

To mitigate the budget gap, staff changed the district's fiscal year by two months, creating a 10-month fiscal year for 2018-19. On a regular 12-month fiscal year, the budget shortfall could have been as much as $9 million.

"At the end of the day, we do still have to pay the recapture," board Vice President Jim Dossey said. "And if we have this problem next year, at some point we have to do something to pay it."

In terms of revenue coming in, enrollment is up by 580 students districtwide, the largest single growth the district has ever seen.

"Based on the circumstances being we opened a second high school, it's a big hit to the budget and we've known since 2015 this was the year there was going to be a large escalation in the budget," Superintendent Beau Rees said. "We expect with the trends to see another large growth this year [in enrollment] and it didn't make sense from an instructional management aspect to go reduce staff while opening a high school."

About 80 percent of the total budget is staff salaries.

"We have basically the next 10 months to begin putting together contingency plans to make sure we have a balanced budget for FY 2019-20," Rees said. "At this point, it's all going to be decisions about how do we reduce people. In a year, we experienced the greatest growth we ever had in the history of the district, and we're trending to do the same this year [with] opening a second high school. We feel good about the budget we're able to present and made it work by making it a 10-month budget and changing the fiscal year. That's it in a nutshell."

District employees plan to look at tax increases and present it to the board in October and November, after the enrollment count is finalized in October; however, Rees said officials aren't hopeful about being able to pass a tax increase since Klein ISD's failed tax ratification left them $30 million short.

The board set the public hearing date for the budget and tax proposal for Aug. 21.

In other news Tuesday, the board also:

  • approved $270,000 for a new acoustical shell system in the auditorium at Montgomery High School

  • approved $809,302 for a library makerspace renovation at Montgomery High School



The HCA Houston Healthcare Conroe board of trustees unveils the hospital's new sign June 25. (Andy Li/Community Impact Newspaper)
HCA Houston Healthcare Conroe wins national distinction

The award recognizes the hospital's work in "protecting patients from harm and providing safer health care."

The office offers offer insurance, income tax and notary public services. (Courtesy Flash Insurance & Income Tax)
Flash Insurance & Income Tax now open in Conroe

The office offers offer insurance, income tax and notary public services.

Drivers on the Grand Parkway will pay higher tolls come Jan. 1, 2020. (Courtesy Fotolia)
Tolls to increase Jan. 1 on the Grand Parkway

Drivers on the Grand Parkway will see toll rates increase 2% on Jan. 1, 2020.

Manager Shannon Vinecke and owner Robert Aranguren run Cards and Comics Connection. (Andy Li, Community Impact Newspaper.)
Cards and Comics Connection

At Cards and Comics Connection, comic books line the walls, while gaming tables fill the store.

SHSU Physicians will begin seeing patients Nov. 12. (Courtesy Sam Houston State University)
SHSU Physicians clinic to open in Conroe on Nov. 12

The clinic is located at 690 S. Loop 336 W., Ste. 200, Conroe.

Commissional Coffee will celebrate its three-year anniversary on Nov. 17. (Courtesy Sonya Orr/Commissional Coffee)
Commissional Coffee to celebrate three-year anniversary in Conroe

The store stocks various types of fair trade and organic coffee and also has a small gift shop.

Brian Hayden presents at a Conroe ISD Audit Committee meeting Nov. 6.
Conroe ISD welcomes new internal auditor

Brian Hayden has worked as a former contractor with Houston ISD with 15 years of auditing experience.

spirit of texas bank
Alamo Title relocates from Conroe to Montgomery

The residential and commercial title insurance provider opened in Montgomery on Oct. 7.

Texas capitol
UPDATED: Here is how Texas voters weighed in on 10 state constitutional amendments on the ballot Nov. 5

Ten constitutional amendments went before voters in Texas on Election Day, Nov. 5.

Conroe ISD
UPDATED: Conroe ISD's Proposition A passes, Proposition B fails

58.45% of voters support the $653.57 million Proposition A and 41.55% voted against it. The $23.8 million Proposition B earned 44.73% for and 55.27% against.

100+ Women Who Care will host its first north Houston chapter meeting Nov. 14 at 7 p.m. at VillaSport Athletic Club and Spa. (Courtesy 100+ Women Who Care North Houston)
100+ Women Who Care organization to host first north Houston chapter meeting

The organization makes large-sum donations to jointly selected local nonprofits.

Owners Colleen Fitzpatrick and Mike Westering opened Cedar Lodge in October 2018. (Eva Vigh/Community Impact Newspaper)
Cedar Lodge brings American comfort food to fine dining

Cedar Lodge combines American comfort food with fine dining.

Back to top