Humble ISD officials began the 2024-25 school year on Aug. 7 with an emphasis on food-services spending as district officials prepare to undertake several previously planned child nutrition projects.
HISD Chief Financial Officer Billy Beattie noted trustees approved a balanced general operating fund budget for fiscal year 2024-25 with roughly $515.5 million in revenues compared to around $515.3 in expenditures.
While the general operating budget was balanced, Beattie said the district's child nutrition fund contained an intentional $15 million deficit to help fund roughly $38.7 million allocated toward various food services projects. He noted the child nutrition fund is a stand-alone budget and does not affect the district’s general operating budget. Beattie also said the Child Nutrition Department does not receive any revenue from local tax dollars, including property taxes.
District officials decided to move forward with the previously planned food services projects this year to avoid potentially losing the funds if they sat too long in the district's savings, Beattie said.
Additionally, he pointed to a number of other factors officials had to consider while drafting the 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 loss in state funding
- A $5 million loss in state revenue based on the district losing its fast-growth status
- A nearly $10.6 million increase in operational costs due to inflation
What's happening?
Of the 16 Greater Houston-area school districts covered by Community Impact, officials for 11 districts said they are expecting budget shortfalls in FY 2024-25.
However, when comparing the shortfalls with the Texas Education Agency’s 2023-24 student enrollment numbers, HISD’s shortfall of $309 per student was the second-lowest per-student shortfall in the region.
Jonathan Frey, HISD assistant director of public communications, said the bulk of the food-services projects consist of replacing and upgrading serving lines at multiple campuses as well as enhancing equipment to introduce new scratch-prepared menu options.
Frey said the additional funding will extend some food service employees’ workdays and will include the cost of new uniforms. Smaller initiatives will include replacing ice machines, dishwashers and cafeteria tables, he said.
The breakdown
Despite the challenges, trustees approved a budget containing a roughly $3.7 million compensation package including 1% on-average raises and a one-time stipend worth 1% of salaries for all employees.
Beattie noted the compensation package would effectively raise a starting teacher’s salary in the district from $63,700 in FY 2023-24 to $64,350 in FY 2024-25.
Several adjustments were also made to the district’s compensation plan, including raising the pay for:
- Bus aides, child nutrition specialists and custodians to $12.63 per hour
- Special education paraprofessionals to $15 per hour
- Bus drivers to $20 per hour
According to HISD's website, major cuts and expenditures in the FY 2024-25 budget include:
- A nearly $40,000 cut to curriculum and instructional staff development
- $140,000 cut to data processing services
- A roughly $50,000 cut to administrative spending
- Roughly $3.7 million spending increase on staff compensation
Beattie said there was also an estimated $20 million increase in state-mandated spending associated with House Bill 3, which—among several new security measures—requires school districts to have an armed security guard at each of their campuses.
Beattie said officials pulled about $6.7 million from the district’s fund balance to help pay for several one-time expenditures. However, he noted the district still has around $68 million left in the fund balance to cover the cost of unexpected capital, emergency and safety expenditures.
Also of note
Beattie noted the district lost around $12.5 million in state revenue in the FY 2024-25 budget due to a roughly 3% decrease in student attendance.
Texas public schools are financed based on attendance rates, with districts receiving $6,160 per student who meets the average daily attendance threshold, according to the TEA.
While Beattie said the district is enacting measures aimed at increasing daily student attendance, Trustee Martina Lemond Dixon called on state lawmakers to consider transitioning to a funding system based on student enrollment as opposed to average daily attendance.
Beattie also noted the district will no longer receive $5 million in recurring state funding because HISD is no longer considered a fast-growth district.
State Rep. Charles Cunningham, R-Houston, said he believes education will be at the forefront of the state’s upcoming legislative session.
“The Legislature did not address school funding in the 88th session, so it will be a top priority,” Cunningham said.
Cunningham noted the state’s Committee on Public Education would release a list of recommendations to address funding and educational opportunities in October.
Bob Popinski—senior director of policy at Raise Your Hand Texas, a nonprofit education advocacy group—said he hopes education funding will be a focus in the upcoming 89th session.
“School funding is ... one of the priorities that the Legislature is going to have to take care of,” he said.
Emily Lincke contributed to this report.
