In February, SISD leaders estimated the district would be facing a $25 million shortfall for the fiscal year 2024-25 general fund budget. By May, the district was able to make $13.4 million in budget reductions, leaving a shortfall of almost $12 million.On June 18, KISD trustees adopted a $698 million budget for FY 2024-25 containing a roughly $36 million budget shortfall.District leaders have stated they hope to see additional funding allocated to public school districts in the 89th Texas legislative session, which begins Jan. 14.
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.
Comparing the anticipated shortfalls before budget cuts to the Texas Education Agency’s 2023-24 student enrollment numbers, SISD’s shortfall of $737 per student was the third-largest in the region, while KISD’s shortfall of $678 per student was the fourth-largest. Data shows Houston and Cy-Fair ISDs have the top shortfalls per student.KISD and SISD leaders have both attributed their budget shortfalls to high rates of inflation and a lack of additional funding from the state as well as other factors. KISD’s shortfall was largely a result of an approximately $4.8 million reduction in federal funding and roughly $71.3 million reduction in property tax revenue compared to last year, KISD Chief Financial Officer Daniel Schaefer said.
“There’s just a mix of things that are really pressuring school districts into having to make and adopt deficit budgets or cut programs, ... and that is a big problem moving into not only next school year but the school year after,” said Bob Popinski, senior director of policy at Raise Your Hand Texas, a nonprofit education advocacy group.
The breakdown
In a split vote June 11, SISD’s board of trustees passed a balanced budget that includes $20.4 million in potential revenue that would be earned should a voter-approval tax rate election, or VATRE, ballot initiative be called by Aug. 19 and passed by voters in November.
A net loss—employees cut plus employees added—of 100 full-time SISD staff members equaling $9.8 million in savings, makes up the largest portion of the $13.4 million in budget cuts made to SISD’s FY 2024-25 budget. In a June 11 interview with Community Impact, SISD Chief Financial Officer Ann Westbrooks noted the district worked to find other open positions for staff whose positions had been eliminated as part of the budget cuts.
“We were still trying to take care of our Spring [ISD] family and have a place for them next year,” Westbrooks said.
While KISD’s budget was unanimously adopted by board members, several trustees voiced concern about taking $33.8 million from the district’s fund balance for next year’s operating expenses.
According to SISD’s website, the largest FY 2024-25 budget cuts include:
- $9.8 million in staffing and position cuts
- $2.4 million from the central office budget
- $685,000 from closing the dual language program at the School for International Studies at Bammel
- $550,000 in savings from reducing the English as a Second Language allotment from $1,100 to $1,000 per student
- $1.4 million reduction in school leadership costs—costs incurred by campus administrators supervising the school and evaluating staff members
- $1.7 million reduction to the facilities maintenance and operation budget
- $795,000 reduction in data processing services
On June 11, Briantè Jackson-Gibson—a choir student at Spring High School—spoke to trustees about her choir director, who she said was laid off due to budget cuts.
“This woman is somebody that I consider a role model in my life, and it saddens me to think that future students won’t have someone like her. ... SHS needs teachers like this—the teachers who see the good in us when nobody else does, the teachers who have faith in us when everyone else has lost it,” Jackson-Gibson said.
Sarah Welsh, a mother of two band students at Springwoods Village Middle School and Spring High School, expressed concern about band assistant director positions being cut at both campuses.
“This will put strain on our directors [and] even more countless hours than they already put into our programs,” Welsh said. “The [assistant director] who was cut is a very important part of the band [and] ... helps make our band successful.”
Diving in deeper
If a board of trustees approves a tax rate above the voter-approval tax rate, voters then must consider the tax rate in an election. SISD’s FY 2023-24 maintenance and operations tax rate is $0.6692 per $100 valuation, but the proposed VATRE would put SISD’s FY 2024-25 M&O rate at $0.7192 and generate an additional $20.4 million annually for the district, Westbrooks said.
A possible November VATRE included in SISD’s budget would potentially cover the district’s remaining anticipated budget gap and pay for 2% raises for staff.
- April 2024: District officials collect community feedback on a potential SISD VATRE
- June 11: SISD trustees pass a balanced FY 2024-25 general fund budget that includes $20.4M in potential VATRE revenue
- Aug. 8: Last day for trustees to approve SISD’s annual tax rate
- Aug. 19: Deadline for trustees to call a VATRE for the Nov. 5 election
- Nov. 5: If called, the VATRE would go before voters for consideration
- February 2025: If the VATRE is not approved, SISD leaders would remove VATRE revenue from the FY 2024-25 budget and present adjustments to trustees
A bill was proposed during the 88th legislative session that would have provided $8 billion in funding for public education and teacher stipends, state Rep. Sam Harless, R-Spring, said. The bill included funding for private school vouchers and eventually died. He said public education funding will likely be proposed in the 89th legislative session.
If legislators do not provide more funding in the upcoming session, SISD will likely need to make more staff cuts, reduce programs and services, and increase class sizes, Westbrooks said in a July 30 email.
“Our ability to maintain the quality of education and support services for our students will be compromised, affecting their academic performance and overall well-being,” Westbrooks said.
