The presentation focused solely on the budget cycle and projected revenue, which Boles said are up about 2.8% from the FY 2024-25 budget.
Boles said TISD is developing its FY 2025-26 budget with a focus on meeting student needs, staying competitive, supporting staff and maintaining facilities. At the same time, Boles said the district faces challenges like a tight labor market, rising costs due to inflation and ongoing supply shortages.
Additionally, Boles said the growing special education program and the district’s aging infrastructure have created internal challenges, while rising insurance costs and uncertainty from the ongoing legislative session are external factors impacting the development of the FY 2025-26 budget.
Boles said TISD’s special education program has grown by 70% over the past five years, and the district spent $23 million on it last year, which is $6 million more than the state provided.
“There’s a little bit of a gap there when it comes to the amount of funding we receive for the program versus what we as TISD actually spend in local dollars,” Boles said. “There’s a little bit of a gap [and] we have to be mindful of that and how we close it, what funds we have available to continue supporting the special education program and the growth.”
A closer look
TISD’s general fund, which covers most of the district’s daily operations, is primarily supported by local and state revenue, Boles said.
About 55.5% of the funding comes from local sources such as property taxes, investments and other district-run activities. State funding makes up 44.1% of the general fund, which Boles said is a significant increase from around 19% before 2019. Federal funding accounts for just 0.4% of the district’s general fund.
Some of the projected revenues include:
- $118.19 million in local property taxes
- $3.84 million in other local revenue
- $2.45 million for the Teacher Incentive Allotment
- $7.02 million for a fast-growth allotment
- $74.91 million in remaining state aid
- $1.06 million in federal funding
Boles said TISD is following a clear timeline to develop and finalize the FY 2025-26 budget, with important steps and decisions planned in the coming months:
- April/May: board budget workshops, certified estimates of property values
- June: public hearing and adoption of the 2025-26 budget
- July: certified property values received from Harris and Montgomery counties
- September: adopt the tax rate
Boles said he will present FY 2025-26 budget expenditures to the board of trustees during the May 12 workshop.
