Last year, trustees approved a $549.6 million budget for FY 2021-22 that included a 3% average raise for all employees, a $1,400 retention stipend added to base pay for teachers, a $1,000 stipend for other staff and a raised minimum hourly wage for full-time auxiliary staff members to $11.50.
According to HISD Chief Financial Officer Billy Beattie, the specially called meeting was held to give trustees a general overview of the district’s needs and the financial considerations that will be taken into account as officials prepare next year’s budget.
“This is a high-level summary, so there are not a lot of details yet because we are so early in the process,” Beattie said, noting the district employs a zero-based budgeting method, meaning all expenses must be justified for each new budget. “Right now, the campuses and departments have submitted all of their wants for the new year, so we’re in the process of compiling all of that. We will review [the requests] at the district level and move forward as we prioritize those items and provide those [to trustees] at a later meeting.”
Beattie listed several priorities district officials are taking into consideration for next year’s budget, including innovating student programming, building on personalized instruction and teacher compensation.
According to Beattie, the district will consider recent inflation rates when determining teacher compensation and benefits. Beattie noted employee salaries and benefits made up roughly 85% of the FY 2021-22 budget.
“You can’t totally combat inflation,” Beattie said. “Inflation is a moving target, but especially with the current climate, compensation is a priority.”
Beattie also noted the district would take property value growth into consideration.
“We do expect property value growth,” he said. “That may not impact the actual general fund operating budget, but with having called [for the 2022 bond election], we do take into consideration the property value growth as we’re looking to provide [trustees] with a recommendation for the debt service budget.”
Additionally, Beattie noted Autumn Ridge Middle School, which will open in August, will require additional staffing that will need to be factored into the budget.
Beattie said projected student growth also affects the budget process. Last year, the district grew by roughly 2,700 students.
“This is very early, so it’s subject to change, but we’re assuming [the district will gain] 1,200 new students,” Beattie said.
Beattie also noted the district is projecting a 95% student attendance rate, which affects the amount of funding the district receives from the state. Because of challenges resulting from the COVID-19 pandemic, the district’s current attendance rate is around 92%, he said.
“Each wave of COVID[-19] has been a little better on attendance, so we’re expecting to get back to a normal attendance rate for next year,” Beattie said.
According to Beattie, the projected student growth and attendance rates would equate to roughly $23 million in new revenue, up from the roughly $21 million of new revenue generated last year.
Moving forward, Beattie said the district would hold additional budget workshops in April and May before a proposed budget is presented to trustees in June for approval.
