Chief Financial Officer Karen Smith presented a $1.18 billion preliminary budget at the May 8 board meeting, which included a $110.1 million shortfall. This proposal did not account for raises or retention stipends for staff.This plan assumed about 58% of the district’s revenue would come from local property taxes; 39% would come from the state; and the rest would come from federal sources.
At the time of the May 8 presentation, the outcome of school funding bills proposed in the recently completed legislative session was still unknown. The administration’s budget proposal may look different by the June 20 meeting.
“I know we would have loved to have started looking at this all the way back in February, but we just don’t have that ability without having some idea as to what the revenue is going to look [like],” board President Tom Jackson said.
In addition to the legislative session, other factors influencing the budget process include:
- Student attendance levels and an estimated 0.89% year-over-year increase in enrollment
- Remaining federal stimulus funding
- Recruitment and retention
- The opening of new facilities this fall, estimated to cost about $9 million
- Inflation
- A 9.9% year-over-year increase in property values
- Unfilled positions, which have been higher than prepandemic levels
The basic allotment—state funding school districts receive to provide a basic level of education—has been set at $6,160 per student since 2019-20.
During the recent legislative session, public education advocates asked lawmakers to increase the basic allotment as double-digit inflation increases and a nationwide teacher shortage put a strain on school districts.
CFISD advocated for a $1,000 increase in the basic allotment, and Chief Financial Officer Karen Smith said a $900 increase was needed just to recover from inflation.
By the end of the session, House Bill 100 had proposed a $140 increase in the basic allotment over the next two years, but the effort failed as the Texas Senate amended the bill days before the session ended to include a school voucher provision.
Although no increase in the basic allotment passed during the regular session, a special session later this year could result in changes to the state’s public school funding formula.
What are the options?
Smith presented several outcomes based on the May 8 budget proposal, each of which would require approval by the board, state legislators or local voters.
- Increase in the basic allotment or other state funding: requires legislative action
- Modify adjustment to state property values for the optional homestead exemption: requires legislative action
- Remove a portion or all of the 20% optional homestead exemption: requires board approval
- Increase maintenance and operations tax rate: requires voter approval
- Use remaining federal stimulus funds to help offset deficit: requires board approval
- Use fund balance: requires board approval
- Cut expenses: requires board approval
The board will approve a final budget at its June 20 meeting, which will begin at 9 a.m. at the Mark Henry Administration Building, 14400 Matzke Road, Cypress. Members of the public can attend in person or tune in online at www.cfisd.net.
If legislators decide to increase public school funding after June 20, the board can choose to amend it later this year.
