The district is also projecting a tax rate decrease of nearly 2%, or $0.0193 per $100 valuation of a home, for FY 2025-26.
The gist
PISD is projected to have over $217,000 in revenues paired with nearly $590,000 in savings, with expenses reaching nearly $219,000. This results in a shortfall of just over $1 million, according to district budget documents from the board of trustees’ May 13 meeting.
The projected budget also includes a 2% general pay increase, or GPI, for staff and teachers, district documents note.
- A refund of $6.1 million to the district from the 2024 bond from purchase of 1:1 devices
- A reduction in leases and subscription-based information technology, resulting in over $534,000 in savings
- A $6,000 increase in revenues due to property value changes
If the current projected tax rate is adopted, it will be the lowest tax rate the district has had within at least six years, tax rate documents show.
According to a budget presentation from the district, PISD has the following budget challenges:
- Uncertainty of state and federal funding
- Declining projected enrollment drop of about 174 students next school year
- Rising personnel costs such as salaries and benefits
- Increase in special education needs
- Inflation reached nearly 20% over the last five years
- Rising tariffs anticipated in technology, materials and equipment
HB 2 would raise the base amount of money schools receive per student, known as the basic allotment, from $6,160 to $6,555. Under the bill, the basic allotment would be automatically increased every two years, based on property value growth, Community Impact previously reported.
The bill, which initially passed in the House with a 144-4 vote, needs to be voted on by the House one more time before heading to the Senate. However, Superintendent Larry Berger noted that the State Senate has an “entirely different idea of how schools should be funded.”
“They would not like to increase basic allotment,” he said at the meeting. “They want to push it into compensation for teachers and [the Teachers Incentive Allotment], so they have to work out differences to determine what the district receives.”
While the district is currently just adding a 2% GPI to its projected budget, if the district increases the raise to 3%, and HB 2 passes as proposed, the district would receive about $8.9 million, resulting in a surplus of about $6.5 million, district documents note.
Going forward
PISD will meet at the following dates to further discuss next year’s budget:
- June 10: approve compensation
- June 24: public hearing on tax rate and budget adoption
- July 25: final certified values
- August 12: tax rate adoption
