Round Rock Edition | April 2025

Education

A preliminary projection of a budget proposal for the 2025-26 school year in Round Rock ISD shows the district may face a $16 million shortfall, administrators said. This comes as legislators consider a potential increase to the basic allotment, and other factors that are currently undecided, said Dennis Covington, RRISD’s Chief Financial O cer. Covington and other administrators shared an initial budget scenario based on total enrollment of 47,000 students and a 92% attendance rate, in addition to a 2% increase in property values for the district’s tax base. To fund operations, the proposal includes plans for $461 million in revenues and $477.5 million in expenditures, without RRISD faces $16M shortfall

A closer look

Budget projections for RRISD To fund operations, the proposal includes plans for $461 million in revenues and $477.5 million in expenditures, leaving the district with a $16.5 million shortfall.

Several factors in ux that Covington said could change the projected budget, including legislation that would raise the basic allotment, a per-student funding amount factored into the tiered equation determining how much funding a school district can receive in Texas, by $220 from $6,160 to $6,380. As previously reported by Community Impact , the proposal is part of House Bill 2. Other factors highlighted by Covington include federal impacts to funding and tari s impacting the cost of goods, a reduction in the maximum compressed rate which, determines how much a district can tax property within its bounds, and a possible increase to the home- stead exemption for homeowners. Covington said current proposals, if not adjusted, to increase the homestead exemption could see the district lose an additional $19 million in funding.

Revenue

Expenses

$461M

$16.5M shortfall

$477.5M

SOURCE: ROUND ROCK ISDCOMMUNITY IMPACT

additional funds budgeted for compensation increases. Voters did pass nearly $1 billion in RRISD bonds in November, but bond funds cannot be used for regular operating expenditures, under state law. This comes as the district anticipates nishing the current 2024-25 budget year at $464 million in expected revenues and $472 million in planned expenses. In February, Covington said this will likely result in a $3.8 million shortfall, narrowed by a $9.3 million sale of property.

COMMUNITYIMPACT.COM