Now, Chief Financial Officer Jill Ludwig said the district is reviving previously-cut projects—including facility improvement projects, transportation-related expenses, classroom materials and campus security upgrades—with an anticipated $875,000 in excess revenue, up from the initial projection of $545,000.
“The amendment of the budget will be necessary to implement the legislative provisions and then make final adjustments ... prior to Sept. 1,” Ludwig said.
What’s changing
The district’s revised general fund revenue is now projected at $535.8 million, with expenditures totaling $535 million, Ludwig said.
Ludwig said the district’s revised general fund budget now includes:
- An increase of $30.7 million in state revenues, due to House Bill 2
- A decrease of $2.7 million in local revenues, due to homestead exemptions—increasing from $100,000 to $140,000 for general homesteads and from $10,000 to $60,000 for seniors and disabled individuals—on the November ballot
- An increase of $27.8 million in overall expenditures to cover salary increases, travel reimbursements for staff and facility improvement projects that were previously cut
By the numbers
Salaries and benefits account for about 85% of the $534.96 million total expenditures in the budget, according to the presentation.
Meanwhile, about 60% of the district's $535.8 million revenue is sourced from the state, followed by an expected $213 million in local revenue.
The financials
The board also approved a $1.1469 per $100 of valuation tax rate that includes:
- $0.6669 for maintenance and operations, or M&O
- $0.48 for interest and sinking, or I&S
Despite no change in the tax rate, Ludwig said residents may still see higher tax bills due to increased property valuations across Fort Bend County. She noted a 1.79% increase in taxable property values compared to the previous year. However, without the proposed exemption adjustments, she said the increase would have been over 9%.
Ludwig said reducing even 1 cent would result in a loss of approximately $3 million, compounded by a reduction in state aid—a move that would strain operational needs and possibly require cuts.
“I’d love to cut half a cent, even today,” trustee Jon Welch said. “But I trust the administration— this is as low as we can responsibly go while still functioning properly.”
Taking a step back
Prior to the passage of HB 2, the board also approved a flat $2,000 pay raise in May for the district's existing teachers and a 3% midpoint raise for staff, including instructional aids.
The passage of HB 2 mandated $2,500 for classroom teachers with three to four years of experience and $5,000 for classroom teachers with five or more years of experience.
Additionally, Ludwig said trustees approved tiered raises from the bill's staff retention allotment, including:
- $1,000 for new teachers with zero to two years of experience
- $500 for other certified staff on the teacher pay scale, such as counselors, nurses and librarians
- $825 for non-administrative staff such as paraprofessionals, custodians, food service workers and bus drivers
FY 2025-26 will begin Sept. 1, Ludwig said.
