Public school districts across Texas are experiencing stagnant state funding amid rising costs, inflation and declining enrollment.
Districts in the Lake Travis and Westlake area are proposing a variety of options to remain financially healthy, from a voter-approved tax rate election in Leander ISD to the sale of surplus land in Lake Travis and Eanes ISDs.
Eanes ISD
The Eanes ISD board of trustees adopted the 2026-27 budget with a financial surplus of about $80,000 in June. That surplus could increase following the sale of a piece of district land for an estimated $1.5 million, which had not yet been finalized as of press time.
According to Chief Financial Officer Pete Pape, EISD’s targeted fund balance percentage—or the portion of the district’s savings compared to the costs—is 25%. The approved budget scenario did not include a compensation increase for staff, as trustees voted to temporarily hold off on this to keep a cushion in the fund balance until the land sale was finalized.
“The intent was to talk to the board about the decisions that we need to make going forward,” Pape said. “We want to maintain a healthy fund balance, and every decision that we make affects years out. ... Once we have more ‘knowns,’ then we can go forward.”
A variety of cost-saving or revenue-generation measures have been rolled out to address future budget shortfalls and fund balance declines, including administrative cuts and exploring new programming.
The community could also see a bond package on the May 2027 ballot to fund major capital projects.
Eanes ISD - The background
In February, the board voted to increase district facility usage fees, pilot a virtual academy that launched this summer and examine the district’s transfer student strategies, all of which were projected to net $600,000 in new revenues.
Another estimated $3.3 million to $4.5 million in savings were approved as part of a staffing optimization plan that reduced 69 full-time staff positions through attrition or consolidation, and adjusted elementary staffing ratios.
However, the district’s largest savings came from what Superintendent Kirk Koennecke calls the Right Size Plan, announced in April. The plan included $2.8 million in cuts—the largest staffing change to EISD’s central administration in over 11 years, Koennecke said, which was done to “protect teaching and learning in classrooms.”
“I think we got to take a real deep breath after the Right Size [Plan] this spring, but again, that helped us to be able to kind of clear the path to really strategically look ahead at some of the opportunities in front of us,” Eanes ISD Superintendent Kirk Koennecke said.
Eanes ISD - The conditions
In 2025, EISD’s Long-Range Facility Planning Committee presented a list of potential bond projects that included campus modernizations. Now, the district’s Bond Advisory Committee is working on an official list of recommendations for a potential May 2027 bond.
“We have some facilities that are aging, and have been aging for some time, and we want to make sure that the teaching and learning that happens in all of our spaces is our first priority,” Koennecke said.
EISD’s maintenance and operations fund, which relies on both state funding and property taxes, is where the district’s budget hardships fall, Pape said. This can exist in tandem with a bond election as bond dollars go toward the interest and sinking fund and stay within the district.
A bond could also help reduce M&O costs by getting newer, efficient facilities, Pape said.
Eanes ISD - Looking ahead
The board was slated to discuss and vote on a possible one-time payment for staff at its Aug. 18 meeting, after press time. This meeting was also set to include the adoption of the 2026-27 tax rate, which was proposed to be $0.8254 per $100 valuation.
While the district continues to face several “unknowns” pending the Texas Legislature’s 90th session in 2027, Koennecke said the administration will collect community feedback on programming such as the virtual academy in the future.
“I think we’ve been pleasantly surprised with some of that revenue, and that’s another example of us trying to look at new innovative programs and expand some of those revenue opportunities outside of the typical school year,” Koennecke said.
As these optimization efforts begin to roll out, Koennecke said the district plans to kick off its strategic planning process over the next five months in a “historic effort” to collect community input toward a potential bond.
“The BAC members are going to be getting a lot of financial resources and education; they’re going to be able to do some field trips and site visits,” Koennecke said. “They’re going to be able to get a lot of input and feedback throughout the process about what it takes to go through a construction phase.”
The last day for the board to call a bond election is Feb. 12, 2027, in order to hold an election May 1.
Leander ISD
As Leander ISD heads into the 2026-27 school year with a projected budget shortfall of $9.9 million, district leaders are looking at ways to generate additional revenue while addressing districtwide campus and facility needs.
Executive Director of Business Gina Mitschke said LISD continues to face funding pressures due to stagnant state funding, inflationary costs and flattening enrollment.
A voter-approval tax rate election, or VATRE, will be on the Nov. 3 ballot, which would increase LISD’s maintenance and operations tax rate by $0.03 to garner more local funding.
On the interest and sinking side of the budget, LISD’s Citizens’ Facility Advisory Committee has developed a multimillion dollar bond package that would address aging facilities, safety and security needs, and more.
Chief Operations Officer Jeremy Trimble said if a VATRE is not approved by voters, the district could consider bringing it back to voters in 2027 or beyond.
However, 47% of LISD’s 49 campuses will reach its “modernization window” within the next decade, Trimble said, and deferring projects for six months could create yearlong construction delays.
Leander ISD - Potential bond
According to CFAC steering committee co-Chairs Clint Pruett and Rachel Lilla, a four-year bond cycle would cost $708.5 million, and a three-year bond cycle would cost $591.23 million with a reduced project scope. Recommendations include:
- 13 elementary school, 12 middle school and 10 high school projects, including campus modernizations and fine arts and athletic improvements
- 11 information technology projects, including cybersecurity upgrades
- 10 ancillary projects, including a central transportation modernization, HVAC replacements, 106 school bus replacements and solar installation at seven campuses served by Austin Energy
- 8 safety and security projects, including repurposed police and emergency management services
Leander ISD - Voter approval tax rate election
Per district data, passing a $0.03 VATRE would generate an additional $12 million in local taxes for LISD’s maintenance and operations fund in 2026-27. However, a portion of the additional revenue would be subject to state recapture. About $5.3 million of the VATRE-generated revenue would be recaptured, leaving LISD with an estimated $6.7 million in net revenues.
With or without a tax rate increase, district optimization efforts have to continue, Mitschke said.
Leander ISD - What to expect
Leander ISD residents will have the opportunity to vote for a tax rate increase this November, after the board of trustees voted Aug. 17 to add the measure to the ballot.
According to Mitschke, LISD would still need to generate $3.6 million to provide a 2% pay increase in FY 2027-28, even if a VATRE is approved.
Trimble also said plans will be in place to mitigate risks associated with aging facilities and systems if a bond is delayed.
Lake Travis ISD
After a period of growth in the 2010s, Lake Travis ISD is experiencing declining enrollment, which impacts the amount of state funding the district receives. Superintendent Curtis Null said this is partly due to large graduating classes being replaced by smaller kindergarten classes.
“[District enrollment going down] is not uncommon for a community like ours,” Null said. “It’s not always a first-time-homeowners type of community. Many of our families move in when their children are a bit older, and so we don’t get the opportunity to begin to work with them until they’re in middle school or high school.”
According to a recent demographic study, rising home prices and high interest rates have also contributed to slowing enrollment.
The declining enrollment has impacted district funding and slowed growth plans. The district intended to open an eighth elementary school for the 2026-27 school year, but enrollment trends did not match projections, and the district could not justify a new campus at the time. Officials are monitoring student population trends to determine the best time to construct the school. LTISD’s second high school on Reimers-Peacock Road, Highland Lakes High School, has also experienced delays related to enrollment.
Lake Travis ISD - Measuring the impact
While LTISD officials have adopted smaller shortfalls over the past few years, the actualized deficits were often higher than the anticipated shortfall. The board of trustees adopted a budget with a $1.2 million shortfall for 2026-27, and Null said the district opted to prioritize staff raises over adopting a balanced budget.
Raises were funded through the $5.3 million sale of 17 acres of surplus land. The remaining funds from the sale were added to the fund balance, which serves as the district’s savings account and is used to pay for expenditures when the district is waiting for state funding and tax revenue.
The strategic resources subcommittee is dedicated to identifying revenue-generating opportunities, including the land sale and the contract for stadium naming rights. Additionally, Null said that through educating parents about school funding, attendance increased by 1%, which generated an additional $700,000 last year. The Texas Education Agency provides a basic allotment of $6,215 per student, but the amount the state provides is calculated on attendance rather than enrollment.
LTISD also opened applications for out-of-district transfers, and Null anticipates adding 30 to 40 students throughout the year. He said the additional students would not require more staff.
Lake Travis ISD - Zooming in
Lake Travis ISD voters passed bonds in 2022 and 2023, both of which provided funding for Highland Lakes High School.
The campus was originally scheduled to open in 2028, but was delayed due to site permitting issues and updated enrollment projections. The district redesigned the school for a smaller 1,500-student capacity, with the ability to expand in the future.
Highland Lakes High School is planned for a 150-acre lot, with three buildings for academics, fine arts and athletics.
