Liberty Hill ISD shares financial audit results ahead of November tax-rate election

In FY 2023-24, LHISD received $9,368 in revenue per student, which was lower than the peer districts average of $9,707 per student and state average of $10,628, according to the audit.

At 17.8%, the percentage of economically disadvantaged students in LHISD fell below the averages of its peer districts and the state. Additionally, LHISD had a smaller percentage of English learners, bilingual students, and students in career and technical education courses.

Also of note

LHISD spent 86% of its operating budget on payroll, which was higher than its peer districts and the state. The district’s average teacher base salary of $58,147 and average administrative base salary of $92,183 was lower than peer district and state averages.

The district’s superintendent salary of $265,210 was higher than its peers and the state in FY 2023-24.

LHISD had a larger percentage of teaching staff at 52.1% and paraprofessionals at 13.2% lower percentage of administrative staff at 3.8% compared to its peers and the state average.

“You are spending more of your dollars in the classroom,” Lopez said.

The impact

LHISD has made multi-million dollar budget cuts and called VATREs in recent years as its fund balance, or savings, has dwindled.

The district's unassigned fund balance declined from $16 million in FY 2021-22 to $12.6 million in FY 2023-24. In FY 2023-24, LHISD was $9.1 million short of its goals of maintaining three months of operating expenditures at $21.7 million, which is considered best practice, Lopez said.

Why it matters

If voters approve the proposed tax rate increase, LHISD could invest $7.2 million into student programs, including:

• Reinstating 70 campus positions for gifted and talented, English-as-a-second language, STEM, library, and behavior support positions, which were cut in FY 2025-26
• Reducing class sizes through scheduling after classes were increased this school year
• Returning to secondary teachers teaching six out of eight periods instead of seven
• Hiring 25 positions for maintenance, grounds, custodians, bus drivers, monitors and central office
• Restoring campus budgets

The district could spend $2.2 million on employee pay raises, including:

• Stipends of $500 for employees of less than a year, $1,000 for employees of one to five years and $1,500 for employees of more than five years
• 1% raise at midpoint for all employees
• Texas Association of School Boards audit of all positions and pay grades for the 2026-7 school year

If the VATRE is unsuccessful, the district is expected to make $3 million in budget cuts, Motal said. The district could consider:

• Not opening Legacy Ranch Middle School or Lariat Trails Elementary
• Reducing transportation routes
• Further increasing class class sizes
• Sharing campus staff between schools
• Reducing staffing
• Increasing facility rentals
• Implementing fees to participate in extracurricular activities

District voters failed to approve a nearly $0.06 tax rate increase through LHISD’s first VATRE in November 2024.

Something to note

House Bill 2, which passed during the 2025 legislative session, will provide $2,500-$5,000 raises for LHISD teachers with three or more years of experience along with increased pay for support staff.

This summer, the board of trustees approved $1,200 raises for new and beginner teachers as well as central office staff. Additionally, the board approved pay raises for certain transportation workers, special education interns and a paraprofessional and nurses assistant in the 18-plus special education program at the Sept. 15 meeting.