Friendswood ISD’s board of trustees approved a fiscal year 2023-24 budget at its Aug. 21 meeting with at least a $2.45 million shortfall, according to district documents.

The gist

FISD’s new budget calls for about $65.8 million in expenditures and $63.36 million in revenue, leaving a gap of about $2.45 million to fill, according to district documents.

That shortfall could be larger if the district’s voters pass a voter-approval tax rate election, also called a VATRE, in November.

If approved, the district’s tax rate would land at $1.08 per $100 valuation of a home and produce $1.2 million in additional revenue.

If the VATRE fails, the district would face about a $3.65 million shortfall, according to district documents.

By the numbers

Inflation, lack of state funding and a decrease in enrollment are creating budgetary constraints for the district, officials have said in recent months.

Despite those challenges, the FY 2023-24 budget is expected to have $5 million more in expenses and nearly $7 million more in revenue when compared to the revised FY 2022-23 budget, according to district documents.

According to district documents, some key increases in expenditures compared to last year include:
  • $2.7 million more in facilities acquisition and construction
  • $840,150 more in plant maintenance
  • $207,464 increase in security and monitoring services
  • $345,080 more in debt services
Similar to other districts, due to compressed tax rates, the district is projected to take in less local revenue, which is mostly slated to be replaced by state revenue, according to district documents.

What else?

With its current fiscal year wrapping up Aug. 31, district officials are expecting to end the year with a $3.1 million deficit, according to documents from the board’s Aug. 21 meeting. That will put the district’s fund balance at about $15.5 million.

The fund balance for the new year amounts to about 72 days worth of reserves, according to district documents.