New Braunfels ISD could be facing budget shortfalls in the near future.
The overview
NBISD is projecting a $7 million deficit for both fiscal years 2027-28 and 2028-29, according to a Sept. 15 board workshop presentation by NBISD Chief Financial Officer Paul McLarty.
What we know
Representatives from NBISD said that there were several factors that led to the projected budget deficit, which include:
Flat or decreased enrollment across the district
State funding not accounting for inflation, leading to lack of coverage for rising costs from the state
No longer being eligible for the New Instructional Facility Allotment, which provided temporary additional state funding to help cover operating costs of new district campuses and instructional facilities
Losing a prior-year state funding adjustment which will reduce the revenue available to NBISD in the 2027-28 budget year
Superintendent Laurelyn Arterbury said that the projected budget deficit was not the result of the board’s decisions.
“This has nothing to do with mismanagement,” Arterbury said. “This is just our current reality.”
Digging deeper
The projected budget shows that NBISD will face a $7.064 million shortfall for FY 2027-28 and $7.646 million for FY 2028-29, according to the board workshop presentation.
A large portion of the district's income is from tax revenue, and the district is currently projecting a future decline in tax revenue, according to the budget presented by McLarty on Sept. 15.
What's happening
Trustees and district leaders are discussing ways to reduce potential budget shortfalls. During the board workshop, trustees and district staff discussed what has worked well in the past when faced with similar budget situations.
Arterbury said she felt that moving Lamar Elementary into a new building, redrawing campus zones and having a Voter-Approval Tax Rate Election, or VATRE, and bond in one school year have been successful ways to fix budget shortfalls in the past.
The NBISD board of trustees adopted a balanced $114.68 million budget for FY 2026-27, including a 2% wage increase for all district employees. The board also adopted a balanced budget for FY 2025-26 and FY 2024-25, according to previous reporting by Community Impact.
During the Sept. 15 board workshop, McLarty said the district has a fund balance that has grown over the years and will help cover some district expenses.
“We don’t have to slash and burn, for lack of a better word, to get to these numbers,” McLarty said. “We can do something that's structured over a period of time that will get us to where we need to be so that we’re sustained.”
Looking ahead
District leaders are planning to analyze data, hold community meetings, and research campus facilities and staffing before making any decisions. Arterbury said they plan to work through this research “with urgency” to solve the projected budget shortfall as soon as possible.
Board members also emphasized that they want communication with staff and families as the district works through these processes.
