The Woodlands Edition | August 2024

Conroe ISD to add teachers, bridge $12M shortfall From the cover

What’s happening?

Projected scal year 202425 shortfall per student*

Conroe ISD

Klein ISD

Montgomery ISD

Spring ISD

Tomball ISD

Of the 16 Greater Houston-area school districts covered by Community Impact, ocials for 11 districts said they are expecting budget shortfalls in FY 2024-25. Comparing the anticipated budget shortfalls per student by using the Texas Education Agency’s 2023-24 student enrollment numbers, CISD’s shortfall of $245 per student was smaller than that of other neighboring districts. However, CISD ocials said enrollment numbers are growing, and the shortfall will continue to increase if legislative action does not occur. CISD leaders have attributed the budget shortfalls to high rates of ination and a lack of additional funding from the state’s 2023 legislative session as well as increasing personnel needs due to enrollment growth, especially in special education. “There’s just a mix of things that are really pressuring school districts into having to make and adopt decit budgets or cut programs, … and that is a big problem moving into not only next school year, but the school year after,” said Bob Popinski, senior director of policy at Raise Your Hand Texas, a nonprot education advocacy group.

-$245

-$200

-$409

-$439

-$400

-$600

-$678

-$737

-$800

*TEXAS EDUCATION AGENCY ENROLLMENT NUMBERS FROM THE 202324 SCHOOL YEAR WERE USED TO CALCULATE THE SHORTFALL PER STUDENT.

Conroe ISD budget surpluses, shortfalls since 2015

Budget surplus

Projected shortfall

$40M $60M $0 -$40M -$20M $20M -$60M

FY 2015-16

FY 2018-19

FY 2021-22

FY 2024-25

SOURCES: TEXAS EDUCATION AGENCY; CONROE, KLEIN, SPRING, MONTGOMERY AND TOMBALL ISDS¡COMMUNITY IMPACT

The breakdown

The impact

New teacher positions in 202425 Regular Special education

Personnel additions in CISD’s FY 2024-25 bud- get include 147 new full-time positions, which will add $10.8 million to the projected budget, CISD Chief Financial Ocer Karen Garza said. The estimated total expenditures in 2024-25 are $711.97 million, she said. Garza said many of the personnel additions are in special education, which has seen enrollment nearly double since 2020 because qualications for student eligibility have changed, and more students have been able to enter the program. Increased overall enrollment projections in the district provided some additional state revenue for 2024-25, reducing the anticipated shortfall, Garza said. According to the TEA website, enroll- ment projections are used by the Legislature to determine the cost of public education for the next legislative session and determine state aid for schools. CISD ocials said while major budget cuts were not planned in 2024-25, they will be needed in 2025-26 if legislative action does not bring more funding to public schools.

To balance the budget in the 2024-25 year, the district can dip into its fund balance, or reserves, but that is a one-time solution, Garza said. The fund balance of $152.2 million can be used to cover the shortfall this year, but the fund balance is not a sustainable solution because the district aims to maintain a fund balance of 20% of the budget, Garza said. As of August 2025, the fund balance is projected to be $140.3 million, which will fall short of the minimum required for 2025-26.

Elementary

K-6

Intermediate and junior high 3.5 12

High school

Special education enrollment Number of students

Conroe ISD fund balance

15,000

+92.49%

Required fund balance: 142.4M

10,000

5,000

August 2024 August 2025

SOURCE: CONROE ISDCOMMUNITY IMPACT

* PROJECTED

COMMUNITYIMPACT.COM