EDUCATION Cy-Fair ISD approves 3% raises for FY 2023-24 amid revenue loss
BREAKING DOWN THE BUDGET
YEAR-OVER-YEAR REVENUE CHANGES
With higher expenses and less revenue coming in year over year, Cy-Fair ISD is facing a larger budget gap in 2023-24 than it saw in 2022-23.
While local property taxes are up 0.46%, or $2.7 million year over year, state aid dropped by 2.69%, or $9.8 million, in that same time.
Calling out the Legislature Superintendent Mark Henry said this was the most difficult budget to prepare in his 32 years as a superin- tendent and said the Texas Legisla- ture 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 pri- oritized education savings accounts over public education funding this session. Also known as vouchers, education savings accounts allow parents to use public tax dollars to homeschool or enroll their children in private schools. Days before the end of the session in May, lawmakers amended the proposed House Bill 100, which would have increased the state’s per-pupil spending, to include a voucher provision. The Legislature ultimately failed to compromise
Cy-Fair ISD is heading into fiscal year 2023-24 with less revenue available to cover more expenses com- pared to the previous year. The board unanimously approved a $1.21 billion 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. The initial budget district administration pro- posed to the board June 20 did not budget at a June 20 meeting. Despite coming up short on 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.” 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. The approved budget includes a projected shortfall of about $138.6 million, assuming all positions are filled next school year. To offset this gap, the board decided to rely on the district’s remaining $65 million in federal stimulus funding as well as the district’s fund balance. BY DANICA LLOYD & DAVE MANNING
Shortfall
Revenue
Property tax revenue
State aid
2023-24*
2022-23
$0 $100M $200M $300M $400M $500M $600M
$27.95M
$138.6M
$1.11B $1.21B in expenses in expenses
$1.08B
$1.07B
*PROJECTED
RAISING THE BAR Despite the projected funding shortfall, board members said offering employees raises was a priority for the recruitment and retention of quality staff.
For a total cost of $31.2 million, the district is providing:
In 2022-23:
was the average teacher salary statewide. $60,716
was the average teacher salary in CFISD. $65,538
starting salaries for teachers $62,000
raises for all employees 3%
SOURCE: CY-FAIR ISD/COMMUNITY IMPACT
on a plan to increase state public education spending and was also unable to agree on a bill that would allow education savings accounts. 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, officials said.
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. CFISD’s FY 2022-23 budget pro- jected a $109 million shortfall, but the actual deficit came out to about $70 million because not all positions were filled. The remaining deficit will be offset with federal stimulus funds, CFISD Chief Financial Officer Karen Smith said.
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CYPRESS EDITION • JULY 2023
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