Lake Houston - Humble - Kingwood Edition | September 2024

Food services projects prompt budget gaps From the cover

What’s happening?

Projected fiscal year 2024-25 shortfall per student

Cy-Fair ISD

Conroe ISD

Humble ISD Klein ISD Spring ISD Tomball ISD

Of the 16 Greater Houston-area school districts covered by Community Impact , officials for 11 districts said they are expecting budget shortfalls in FY 2024-25. However, when comparing the shortfalls with the Texas Education Agency’s 2023-24 student enrollment numbers, HISD’s shortfall of $309 per student was the second-lowest per-student shortfall in the region. While HISD officials cited high rates of inflation and a lack of additional funding from the state as factors for the district’s budget shortfall, Beattie said the shortfall is also a result of plans to complete several previously planned food services initiatives that officials have been unable to take on over the last few years. Budget documents show the district is planning to spend roughly $36.2 million on various food services projects in FY 2024-25. Jonathan Frey, HISD assistant director of public communications, said the bulk of the projects consist of replacing and upgrading serving lines at multiple campuses as well as enhancing equipment to introduce new scratch-prepared menu options. Frey said the additional funding will extend some food service employees’ workdays and will include the cost of new uniforms. Smaller initiatives will include replacing ice machines, dishwashers and cafeteria tables, he said.

$0 -$200 -$400 -$600 -$800

-$245

-$309

-$409

-$678

-$737

-$1,200 -$1,000

-$1,170

NOTE: TEXAS EDUCATION AGENCY ENROLLMENTS FROM THE 2023-24 SCHOOL YEAR WERE USED TO CALCULATE THE SHORTFALL PER STUDENT. THE PER-STUDENT SHORTFALL TOTALS WERE CALCULATED USING SHORTFALLS THE DISTRICTS FACED BEFORE BUDGET CUTS WERE ANNOUNCED.

Historical Humble ISD budget shortfalls

Humble ISD Actual budget

Projected budget

$0

-$10M

-$20M

-$30M

-$40M

FY 2015-16

FY 2018-19

FY 2021-22

FY 2024-25

NOTE: FROM MARCH 2020 UNTIL SEPTEMBER 2024, FEDERAL ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF GRANTS WERE AVAILABLE FOR SCHOOL DISTRICTS TO USE TO OFFSET BUDGET DEFICITS. SOURCES: TEXAS EDUCATION AGENCY, LOCAL SCHOOL DISTRICTS/COMMUNITY IMPACT

The breakdown

The impact

Despite the shortfall, trustees approved a budget containing a roughly $3.7 million compensation package including 1% on-average raises and a one- time stipend worth 1% of salaries for all employees. Beattie noted the compensation package would effectively raise a starting teacher’s salary in the district from $63,700 in FY 2023-24 to $64,987 in FY 2024-25. Several adjustments were also made to the district’s compensation plan, including raising the pay for: • Bus aides, child nutrition specialists and custodi- ans to $12.63 per hour • Special education paraprofessionals to $15 per hour • Bus drivers to $20 per hour Beattie also noted there would be no increases to health insurance premiums offered through the district’s self-funded insurance program.

While HISD officials said a budget shortfall could have been avoided if district officials had decided to hold off on planned improve- ments to food services initiatives, Beattie said future shortfalls could be a possibility without additional state funding. Beattie said there was also an estimated $20 million increase in state-mandated spending associated with House Bill 3, which—among several new security measures—requires school districts to have an armed security guard at each of their campuses. Beattie said officials pulled about $6.7 million from the district’s fund balance to help pay for several one-time expendi- tures. However, he noted the district still has around $68 million left in the fund balance to cover the cost of unexpected capital, emergency and safety expenditures.

According to HISD’s website, major cuts and expenditures in the FY 2024-25 budget include:

A nearly $40,000 cut to curriculum and instructional staff development $140,000 cut to data processing services

A roughly $50,000 cut to administrative spending

Roughly $3.7M spending increase on staff compensation

Around $36.2M spending increase on food services projects

SOURCE: HUMBLE ISD/COMMUNITY IMPACT

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