The Conroe ISD board of trustees discussed the district's preliminary budget and proposed health care plan for employees for the 2024-25 fiscal year in a workshop meeting April 2, including discussion of a projected shortfall of $17.72 million, more than previously projected.

The overview

Chief Financial Officer Darrin Rice and Director of Finance Karen Garza gave the board an update on the employee health plans as well as an overview of the budget.

The preliminary budget numbers include an estimated total revenue of $695.1 million and an estimated expenditure of $712.82 million, creating the $17.72 million projected shortfall, which officials said equates to about 200 positions.

When discussing the challenges in the budget objectives provided to the board, Garza said the preliminary budget did not include funds for the employee raises beyond what was approved for 2024-25 in November 2023.


The preliminary 2024-25 budget also projects the district will be $10 million short of its target fund balance of $142.6 million, Garza said. The district aims to keep 20% of its fund balance in reserve, but the preliminary budget shows a projected fund balance of $132.6 million, or 18.6%, Rice said.

“This is what we knew it was going to look like when we approved the teacher increase in November,” Garza said.

Superintendent Curtis Null said the board's only real option to increase funding is a voter-approval tax rate election for additional revenue.

The breakdown


The projected $712.82 million in expenditures includes, among other expenses:
  • $10.87 million for additional personnel for growth
  • $1.6 million in salary increase for teacher pay scale adjustment
  • $1 million for a teacher incentive allotment
  • $1.75 million for a Teacher Retirement System in-kind contributions
  • $3.3 million for other expenses such as utilities, insurance and supplies
Within the preliminary budget, various factors went into the planning process, as officials stated in February, including:
  • Student enrollment growth of 1,550 students for a total of 74,000
  • Average daily attendance percentage of 92.5%
  • Certified property value growth of 5.75%
  • Tax rate of $0.9621 per $100 valuation
Looking ahead

When discussing the next steps, Rice and Garza talked about the potential for a special session of the 88th Texas Legislature in the summer.

However, if that does not happen, Rice said the district's financial department will immediately work to cut the budget for the 2025-26 school year and give the board options.

“We’ve been able to carry one more year and have that one level of support,” Rice said to the board.


In other news

The board approved the positions of:
  • Amy Garcia as principal for Creighton Elementary School
  • Liz Koehler as principal for Cox Intermediate School
  • Connie Horton as principal for Wilkerson Intermediate School