The overview
On June 18, KISD trustees adopted a $698 million budget for FY 2024-25, as previously reported by Community Impact. KISD’s shortfall is largely a result of an approximately $4.8 million reduction in federal funding and a roughly $71.3 million reduction in property tax revenue compared to last year.
On Feb. 3, KISD’s board of trustees approved the second budget review for FY 2024-25, which included a net increase in funding. According to Feb. 3 meeting documents, the biggest adjustments to the budget in the review include:
- $5.6 million in additional state funding related to the 2022 property value study
- $1.7 million less state revenue for “actual enrollment”
- $1.5 million in increased expenses for positions “based on 10-day enrollment”
The 2022 property value study is a standard study conducted to verify the values given for taxpayers’ property, said Justin Elbert, executive director of communications for KISD, in a Feb. 5 email. The study determined that homes and businesses were overvalued, requiring the state to contribute more funding.
“When the study shows that actual values are lower than expected, the state sends funds so our schools are accurately funded based on the state-determined per-student allotment. ... This property value study is just one of many tools we use to maximize local funds and ensure the state does its fair share,” KISD Chief Financial Officer Dan Schaefer said via a Feb. 5 email statement. “The additional revenue generated from this year’s study will go directly toward supporting our students and strengthening the district’s financial health.”
At the Capitol
Although KISD’s FY 2024-25 budget shortfall was reduced, the district still pays about $76 million per year for unfunded state mandates, as previously reported by Community Impact. KISD leaders have called for state lawmakers to increase public education funding during the 89th Texas legislative session, which began Jan. 14.
On Feb. 3, KISD leaders updated trustees on initiatives being considered by legislators that could bring more funding to the district, if approved, including:
- $950,000 more in state funding for the FY 2025-26 budget and $3.5 million more for FY 2026-27 related to the school district taxing process
- $1.2 million in additional funding for safety initiatives
- $4.85 billion proposed by both the Texas House and Senate for public school districts statewide to fund teacher pay and general fund budget expenses
Also of note
On Feb. 5, Texas senators passed their first bill of the 89th legislative session, Senate Bill 2, which proposes spending $1 billion annually for education savings accounts, as previously reported by Community Impact. The bill would provide families:
- $10,000 annually per student for private education
- $11,500 each year for private school for children with disabilities
- $2,000 or more annually for families who homeschool their children
- Are allocated state funding at a rate of $6,160 annually per general education student
- Spent an average of $15,503 per student, including state and federal funds, and money received from local property taxes during the 2022-23 school year
“Our special education students ... would be severely short-changed, potentially, [by SB 2], but a regular education student [at a private school] would get even more money than we receive,” Schaefer said. “So we're willing to compete. We just want it to be a fair, competitive playing field, and ... if the funds are going to follow the child, they really need to be following them accurately, not in the manner that’s being proposed.”
Wesley Gardner and Hannah Norton contributed to this report.
