Richardson Edition | July 2024

Education

BY KEVIN CUMMINGS

Richardson ISD trustees adopt $417M FY 202425 budget with $27.2M shortfall

RISD Budget Shortfalls

$20M

The Richardson ISD board of trustees adopted a $417 million budget for scal year 2024-25 that includes a $27.2 million shortfall. Over $9 million more than the previous scal year, the FY 2024-25 budget is the fth consecu- tive shortfall budget adopted by the district. “This budget continues our work to utilize the district’s limited resources,” Superintendent Tabitha Branum said in a news release. The context Throughout the year, Branum has said many of the district’s budgetary issues stem from a lack of increase to public education funding and declining student enrollment. In addition, district ocials previously said RISD is expecting to see operational costs increase by more than $6 million in FY 2024-25 due to increases in insurance costs, special education sta increases, utility cost increases and state mandates, such as required security ocers at all campuses. “As the costs of operating a school district continue to rise due to ongoing ination, it’s important to keep reminding our stakeholders that we have not received a per-pupil funding increase in the basic student allotment from the state Legislature since before the pandemic—six years,” Branum said. The FY 2024-25 shortfall will be funded through the one-time use of the district’s fund balance, which is similar to a savings or checking account. The fund balance is used to pay district expenses,

such as payroll and utilities, every month when property tax collections and state funding are not enough to cover operating costs. A closer look Despite the shortfall increasing from the previ- ous scal year, district ocials said the FY 2024-25 budget includes $12.8 million in cost reductions and eciencies, including school consolidation and cuts to central and support sta. District ocials said they intend to look into other cost-saving measures that include: • Opening enrollment outside the district • Considering a $0.03 increase to the district’s maintenance and operations tax rate • Implementing a new stang framework Digging deeper While the district has made eorts to reduce costs, trustees also approved compensation increases for teaching and nonteaching sta that are expected to cost RISD about $18 million annually. Under the new compensation plan for FY 2024-25, which is aimed at attracting and retaining talent, the starting salary for new teachers will be $61,000. In addition, many other nonteaching sta would see a 3% pay increase, and custodial sta would have a starting pay of $15 per hour. “This budget process has been bittersweet,” Branum said. “The clear highlight is being able to nally reward our experienced teachers at levels they deserve.”

$40M

$80M

$100M

*PROJECTED WITHOUT ANY MITIGATION EFFORTS SOURCE: RICHARDSON ISDCOMMUNITY IMPACT

"This budget continues our work to utilize the district’s limited resources consistent with our ... [goal] of student academic growth.”

TABITHA BRANUM, SUPERINTENDENT

Also of note Other highlights of the budget include: • An anticipated state-set operating tax rate of $0.7899 • A debt service tax rate of $0.35 • Continuing the local optional homestead exemption

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