Pearland - Friendswood Edition | October 2023

From the cover

Friendswood, Pearland ISDs propose higher tax rates to close budget gaps

How we got here

The overview

would do what they said they were going to do,” PISD trustee Crystal Carbone said. “We need the state to fill the gaps.” Roher said typically FISD plans for “some infla- tionary factors,” but with both districts’ student populations staying stagnant, budgets are tighter than normal. “FISD runs tight anyways,” Roher said. “We did away with several positions and absorbed things we could, but it doesn’t help you cut the budget.”

Across Texas, school districts are wrestling with rising costs tied to inflation that, in some esti- mations, are up 18% in the past couple of years, Berger said. The state not increasing the amount of money given to school districts for each enrolled student, which has sat at $6,160 since 2019, has also played a role in both districts’ budgets coming up short, Berger and FISD Superintendent Thad Roher said. “I had a lot of hopes that our legislative body

Friendswood ISD and Pearland ISD are facing shortfalls of $3.65 million and $12.7 million in their respective budgets, and officials seek voters’ help to close the gap. Both districts are set to have voter-approval tax rate elections, or VATREs, on Nov. 7, which could add millions of dollars to each district’s budget. If voters approve the VATREs, the additional property tax revenue will close much of the expected shortfalls and bring in more money for day- to-day operations. They will also allow both districts to give additional raises to teachers and employees, but that means less savings on property owners’ tax bills. “We love celebrating success, but success is not free,” PISD Superintendent Larry Berger said at a June meeting. If voters reject the measures, district officials will have to look for other ways to shore up their budgets, which could mean cuts to a variety of programs, officials said.

Pearland ISD

Friendswood ISD

Expense

Year-over-year cost increase

Expense

Year-over-year cost increase

New student technology devices

$6.8M

Facilities acquisition and construction

$2.7M

Property insurance $1.2M Salaries $3.23M

Maintenance

$840,150 $207,464 $345,080

Security

Debt services

Total

$11.23M

Total

$4.09M

SOURCES: FRIENDSWOOD ISD, PEARLAND ISD/COMMUNITY IMPACT

The options

Budget breakdown

FISD has budgeted for the potential changes while PISD did not in its final budget, which was approved in June, leading to different final numbers. Without the VATRE, both districts will have to consider programming cuts and letting some posi- tions go unfilled, they said. More than 80% of both FISD and PISD’s budgets are spent on personnel. “Long term, we cannot continue to have a budget deficit of $12 million,” Berger said. “If VATRE doesn’t pass, we’ll have to make some tough decisions.”

If the VATREs are approved, it would give both districts more flexibility in future months as they contemplate employee raises. Those shortfalls for fiscal year 2023-24 budgets, depending on later action after November’s election, could look like: • A $3.9 million total shortfall for PISD after new teacher raises • A $2.45 million total shortfall for FISD after new teacher raises

Friendswood ISD

Pearland ISD

With VATRE

$2.45M shortfall

$1.5M shortfall

$3.65M shortfall Without VATRE

$12.7M shortfall Without VATRE

SOURCES: PEARLAND ISD, FRIENDSWOOD ISD/COMMUNITY IMPACT

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