The Texas Legislature designated $4 billion for public education funding in the 88th legislative session, but measures to provide that funding to schools failed to pass.
CISD is expecting a nearly $12 million budget shortfall in 2024-25, and while officials said the district can cover it by dipping into its fund balance, they said that’s not a feasible long-term solution. MISD has a $4.3 million shortfall, and trustees may call for a voter-approval tax rate election in November to generate more funding. Willis ISD is expected to pass a balanced budget for FY 2024-25.
What’s happening?
Of the 16 Greater Houston-area school districts covered by Community Impact, officials for 11 districts said they are expecting budget shortfalls in FY 2024-25.
Comparing the anticipated budget shortfalls per student, using the Texas Education Agency’s 2023-24 student enrollment numbers, MISD’s shortfall of $439 per student was the fifth-largest in the region, while CISD’s shortfall of $245 per student was the third-smallest. WISD officials do not anticipate having a shortfall in FY 2024-25.
CISD and MISD leaders have attributed the budget shortfalls to high rates of inflation and a lack of additional funding from the state’s 2023 legislative session, as well as other factors such as increasing personnel needs due to enrollment growth.
“There’s just a mix of things that are really pressuring school districts into having to make and adopt deficit budgets or cut programs, ... and that is a big problem moving into not only next school year, but the school year after,” said Bob Popinski, senior director of policy at Raise Your Hand Texas, a nonprofit education advocacy group.
MISD’s general fund shortfall for the FY 2024-25 budget stems from a $5.1 million increase in expenses, while revenue increased by only about $798,000, according to district leaders’ June 28 budget presentation.
On May 7, MISD trustees approved $650 teacher raises as well as a 1% salary increase “from the midpoint of their pay grade” for all other employees, according to a May 9 email.
Personnel additions in CISD’s FY 2024-25 budget include 147 new full-time positions, which will add $10.8 million to the projected budget, CISD Chief Financial Officer Karen Garza said. She said many of the personnel additions are in special education, which has seen enrollment nearly double since 2020 because qualifications for eligibility have changed.
The preliminary budget numbers include an estimated total revenue of $700.05 million and estimated expenditures of $711.97 million, which reduced the anticipated shortfall from April projections to $11.9 million. This was due in part to increased enrollment projections, Garza said.
The impact
To balance the budget in the 2024-25 year, CISD can dip into its fund balance—essentially the district’s savings account—but that is a one-time solution for the problem, Garza said.
The fund balance of $152.2 million can be used to cover the shortfall this year, but the fund balance is not a sustainable solution because the district aims to maintain a fund balance of 20% of the budget, or $142.4 million, in case of emergencies, Garza said.
- “We’re taking on ... over a $4 million deficit budget going into next year with the intention of it not impacting our kids and our learning experience for them or our teachers or our staff. That being said, we can’t keep up that pace long term.” —Mark Ruffin, MISD superintendent
- “There has never been a session where public education funding has not gone up, and with the exception of this past legislative session, it’s the only time it hasn’t kept pace with inflation.” —Steve Toth, Texas House District 15 representative
- “We should be able to come out, even in January, and tell our staff, ‘Everyone will have a job. You may not have the job you have today, but ... you will have a job.’” —Curtis Null, CISD superintendent
On May 7, MISD trustees authorized district leaders to order an efficiency audit in relation to a potential voter-approval tax rate election, or VATRE, ballot initiative that would be held in November if called. The deadline to call for a VATRE is Aug. 19.
If approved, a VATRE could bring in between $1.4 million-$9 million more in total funding annually, depending on how much of a tax rate raise the district decides to pursue, according to a May 7 special meeting presentation by MISD Superintendent Mark Ruffin.
“We really, truly have reached the point where we either increase local revenues or we begin making really tough decisions that do impact our students and our staff,” Ruffin said in a July 25 interview.
What’s next?
Sen. Brandon Creighton, R-Conroe, filed Senate Bills 1 and 2 during the 88th Legislature in 2023 that would have provided funds for public education and teacher stipends, but also included funding for private school vouchers with up to $8,000 for each student through an education savings account.
The bills were sent to the House of Representatives but did not advance beyond that stage.
“There is ... strong support to pass the school finance legislation I filed last year, which would infuse our public schools with historic new funding and provide an increase to the basic allotment,” Creighton said in an email. “Anyone who asserts that we can’t deliver historic new funding for public schools while also providing school choice is ... grossly misinformed.”
