The Texas Legislature designated $4 billion for public education funding in the 88th legislative session in 2023, but measures to provide that funding to schools failed to pass.
On June 18, TISD trustees passed a budget with a shortfall of about $9.1 million. Meanwhile, MISD officials anticipate passing a balanced budget but called for a voter-approval tax rate election, or VATRE, in November to generate additional funding.
District leaders said they hope to see more 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 per student, using the Texas Education Agency’s 2023-24 student enrollment numbers, TISD’s shortfall of $409 per student was the sixth-largest in the region, while MISD was one of three districts projecting a balanced budget.
“Should the Texas Legislature not address funding for public education, ... you’re going to continue to see districts across the state ... make drastic cuts that are going to impact the quality of the services that they’re providing to students,” TISD Chief Financial Officer Zack Boles said.
TISD leaders attributed the budget shortfall to high rates of inflation and a lack of additional funding from the state as well as other factors.
“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.
For FY 2024-25, TISD will employ 2,952 total staff, which is 183 more employees than in FY 2023-24, according to budget documents. About 87% of TISD’s budget is allocated to staff salaries and benefits, Boles said during an April 8 board meeting.
About 10-12 positions—funded by federal Elementary and Secondary School Emergency Relief Fund dollars that expire in September—were the only staff positions to be eliminated for the FY 2024-25 budget, Boles said. These staff were given the opportunity to apply for other TISD jobs, but he did not know how many of these employees were retained.
While MISD officials anticipate a balanced budget, district trustees approved calling for a VATRE to generate additional funding.
“The VATRE is the only local option that we have at our disposal to try to generate more money and offset the absence of the state doing what’s right for public education,” Assistant Superintendent of Operations Erich Morris said in an interview.
The impact
To cover shortfalls in FY 2024-25, districts can dip into their fund balances, which are essentially savings accounts, officials said.
“We’re using our general fund reserves to provide stability to our students, so that ... we can ensure that they’re not going to see an impact to the level of services that TISD has historically provided,” Boles said.
On June 17, TISD trustees said they do not like passing budgets with shortfalls, but TISD has been preparing for this year’s gap.
- “Deficit budgets are not sustainable long term. While we’ve done a great job of setting aside reserves to handle situations like this, it’s not sustainable as we move forward.” —Zack Boles, chief financial officer, TISD
- “The longer we go without the state increasing the basic allotment or at least providing us additional dollars, ... the more challenging it’s going to be to maintain balanced budgets.” —Erich Morris, assistant superintendent of operations, MISD
On Aug. 12, MISD trustees voted in favor of holding a VATRE on Nov. 5. Trustees approved proposing a total tax rate of $0.9895 per $100 valuation, according to the board agenda.
If voters approve the VATRE on Nov. 5, that proposed total tax rate would go into effect and cost a homeowner about $8.21 more per month on a $328,068 house, which is the average taxable home value in Magnolia, according to the district. If the VATRE fails, the tax rate would be $0.9595 per $100 valuation.
The money generated by the passage of the VATRE would go toward funding salary increases for teachers, additional one-time pay increases, raises for school resource officers and additional SROs.
Meanwhile, 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.
“I feel comfortable that it would be at the same amount for the public education system, but I’m not sure yet,” Harless said. “It’s too early to tell.”
Popinski said he hopes public education funding will be a focus in the upcoming 89th legislative session.
“School funding is going to be ... one of the priorities that the Legislature is going to have to take care of,” Popinski said. “So I hope first and foremost, they kind of make sure that school districts are keeping pace with inflation and more importantly, keeping pace with the needs that they have, to make sure our students are achieving.”
