Cy-Fair ISD approves 3% raises for fiscal year 2023-24 despite less revenue than previous year

CYPRESS, Texas -- Cy-Fair ISD is heading into fiscal year 2023-24 with less revenue available to cover more expenses compared to the previous year. The board unanimously approved a $1.21 billion budget about nine hours into its June 20 meeting.

The video above is from a previous report.

This budget includes a projected shortfall of about $138.6 million, assuming all positions are filled next school year. Despite coming up short on revenue, the board also approved 3% raises for all employees and increased the starting teacher salary for 2023-24 from $60,500 to $62,000.

To offset the deficit, the board decided to rely on remaining federal stimulus funding as well as the district's fund balance.

The initial budget district administration proposed to the board did not include raises or stipends for staff.

"Obviously, our expenses are up and our revenue is down, so that puts us in a deficit. So the challenge is, how do we create a budget that will support our priorities, our goals for our students?" Trustee Julie Hinaman said. "I know you've presented a budget that does not include raises. We must have raises in this budget moving forward."

By the numbers

• CFISD is anticipating a $2.7 million year-over-year increase in local property tax revenue in FY 2023-24 and a $9.8 million decrease in funding from the state.

• Based on the district's current pay scale, each 1% pay raise for staff costs the district about $9 million. The district plans to spend $31.2 million on salary increases as well as the starting teacher salary increase in FY 2023-24.

• Average daily attendance in CFISD has declined 2%-3% since the COVID-19 pandemic began, Chief Financial Officer Karen Smith said, and state funding is based on student attendance rather than enrollment.

• The current basic allotment in Texas is $6,160 per student. This is the amount of per-student state funding districts receive to provide a basic level of education. Each $50 increase in the basic allotment yields about $7.3 million to CFISD.

• It would cost the state an estimated $13.118 billion to increase the basic allotment by $900, which is needed to match inflation since 2019.

• CFISD's FY 2022-23 budget included a projected shortfall of $109 million, but the actual deficit ended up being about $70 million because not all positions were filled. Federal stimulus funds will be were used to offset the remaining deficit, Smith said.

• The district has about $65 million left in federal stimulus funding. This money expires in September 2024 and can be used to help offset this budget deficit in FY 2023-24.

Dig deeper

Superintendent Mark Henry said this was the most difficult budget to prepare in his 32 years as a superintendent and said the Texas Legislature showed "a lack of concern for public education" during the session that ended May 29. Despite a $32.7 billion surplus in the state budget and approximately $26.4 billion in the state's Rainy Day Fund, state lawmakers did not increase general funding for public schools this session.

"We still do not have a major bill yet to fund public ed, and we've been told that the special session won't occur until September ... because teachers will not be available to come speak at the Capitol; they'll be back in the classroom. I'll just say it; I'm going out anyway-it's irresponsible and insidious what the state is doing to public education right now," said Henry, who recently announced he will retire at the end of 2023.

Henry noted many lawmakers ended up prioritizing education savings accounts, also known as vouchers, which allow parents to use public tax dollars to homeschool their children or enroll their children in private schools. But the Legislature was unable to agree on a bill that would allow education savings accounts. Both House Bill 100 and Senate Bill 8 failed to pass, and the state failed to fund teacher raises or an increase in the basic allotment.

It is within the scope of the board's financial oversight of the district to make changes to the budget as necessary, so if a special session yields any changes to the funding formulas later this year, the board could amend the budget.

This article comes from our ABC13 partners at Community Impact Newspapers.