What to know
CISD Chief Financial Officer Karen Garza presented an overview of the district’s current budget and a preliminary look at FY 2025-26.
The preliminary budget includes an estimated total revenue of $718.81 million and estimated expenditures of $722.62 million. The projected FY 2025-26 tax rate is $0.9447 per $100 valuation, a decrease of $.0049, Garza said.
Some context
Along with Garza, Montgomery County Tax Assessor-Collector Tammy McRea and Interim Chief Appraiser Sherry Hunter were present to inform the board of a calculation error in the state funding allocated for tax year 2023. The error was a result of inaccurate reporting instructions provided by the state comptroller’s office to the local tax assessor, they said. It will also impact funding for the 2024 tax year and beyond, they said.
Garza said she noticed the error and brought it to the attention of McRea, who initiated an investigation. The investigation has led to school districts across Texas, including CISD, being eligible to receive refunds from the state, McRea said.
“We probably wont find out the definitive answer of how much until spring, but conservatively, we have had two external groups look at the calculations and we are anticipating conservatively about a $10 million gain for tax year 2023 and $7.5 million for going on for tax rate 2024,” Garza said.
The options
Garza gave the following options to the board for possible consideration to receive more funding from the state in FY 2025-26:
- Disaster pennies, which could be awarded due to Hurricane Beryl, would need board approval by August 2025.
- A Voter Approved Tax Ratification Election could be held to access additional funding in the November 2025 election
- Reduction of the budget through potential cuts
