The overview
HISD Chief Financial Officer Billy Beattie gave trustees an overview of the FY 2024-25 budget during the board’s May 21 workshop.
Beattie noted the compensation package will equate to a 2% on-average raise for all returning staff members, which would effectively raise a starting teacher’s salary in the district from $63,700 in FY 2023-24 to $64,987 in FY 2024-25. Without the stipend, Beattie noted the 1% pay increase would raise a starting teacher’s salary in the district to $64,350 in FY 2024-25.
Additionally, Beattie said officials are recommending no increases to health insurance premiums offered through the district’s self-funded insurance program.
By comparison, insurance premiums offered through the Teacher Retirement System of Texas—which are typically offered to state public education employees—are projected to rise by 9% next year, Beattie said.
“This is what sets us apart,” Beattie said. “In a year where school districts are facing financial challenges, it’s unlikely that districts are going to be able to contribute a lot towards [TRS health insurance premium increases].”
A closer look
Beattie pointed to several factors officials have had to consider while drafting next year’s budget, including:
- The loss of federal Elementary and Secondary School Emergency Relief funds
- An approximate 3% reduction in attendance resulting in a roughly $12.5 million funding decrease
- An approximate $10.6 million increase in operational costs due to inflation
According to the projected FY 2024-25 budget, HISD will take in roughly $636 million in revenue while spending around $651 million, resulting in an approximately $15 million budget shortfall.
However, Beattie said the projected shortfall is a result of plans to complete several previously planned initiatives officials have been unable to take on over the last few years.
“Supply chain issues that we had a few years back set us back quite a bit in being able to complete some of the initiatives that we've been wanting to do with child nutrition,” Beattie said. “We're planning for a $15 million deficit not because we don't have revenue, but because we have so many initiatives that we believe we can actually complete this year.”
Beattie said officials will still have roughly $62 million set aside in the district’s fund balance, which he said could be allocated toward safety spending, preparedness, health plans and other contingency costs.
“We’re maintaining a very strong position,” Beattie said.
What’s next
Trustees will consider adopting the FY 2024-25 budget during the board’s June 11 meeting before considering adopting the district’s tax rate for FY 2024-25 in September.
