Education
BY JAMES T. NORMAN & HALEY VELASCO
Amid challenges, Alvin, Friendswood, Pearland ISDs improving financially
Diving in deeper
AISD, FISD and PISD are making a number of adjustments in their respective budgets this year. Some highlights include:
Cost increases
Savings & reductions
Alvin, Friendswood and Pearland ISD’s respective fiscal year 2024-25 budgets are in better shape than they were last year, but officials aren’t shying away from speaking publicly about the financial challenges facing public education. Several issues surrounding inflation, lack of state help and in some cases, stagnating enrollment, are creating strains on budgets not only locally, but across the state, officials from the three districts said. Alvin ISD is projecting a balanced budget for FY 2024-25. The district will see an additional $7 million in both revenue and expenses compared to last year, documents show. AISD will consider its budget June 11. Friendswood ISD is currently looking at a $705,000 shortfall. Documents from May show the budget’s expenses would be $4.4 million less than last year. It will consider its budget in either July or August. Pearland ISD is expected to see a surplus of around $4.1 million. Despite this, in addition to the statewide challenges, officials are unsure about student growth given a new charter school opening in the area in August, which could affect the budget negatively, officials said at a May workshop. PISD will vote on its budget in June ahead of the July 1 new fiscal year, documents show. Currently, its lone June meeting is June 11. Though individual tax bills depend on how home values change each year, officials at each district expect their respective tax rates to drop compared to last year.
Budget breakdown
Alvin ISD
$18.4M
$11.5M
more in personnel costs
less for non-annual expenses
Revenue
Expenses and other financing services
AISD
$1.7M
more in technology
$366.6M $366.6M
Balanced budget
Friendswood ISD
FISD
$60.6M $61.3M
$490K
$1M+
in approximate new salary costs
in cuts, including operational costs and insurance
$0.7M shortfall
PISD
Pearland ISD more in staff pay $6M
$213.3M
$4.1M surplus
$8M
in projected salary savings
$209.2M*
$1.7M
less in contingency expenses
Tax rate changes
AISD
SOURCES: ALVIN, FRIENDSWOOD, PEARLAND ISDS/COMMUNITY IMPACT
$213M $1.1923
2023-24 2024-25
$1.17
Down by 1.87%
FISD
$1.08
2023-24 2024-25
How we got here
$1.07
Down by 0.93%
PISD
According to district documents, school districts across Texas are facing many similar challenges financially, which include: • Inflation of nearly 20% since 2019, and the per student allotment staying at $6,160 in that time
$1.1373 $1.135
2023-24 2024-25
Down by 2%
NOTE: TAX RATES ARE BASED ON PER $100 VALUATION OF A HOME. RATES ARE PROJECTED UNTIL APPROVED BY RESPECTIVE BOARD *INCLUDES POSSIBLE $8.2M IN SALARY SAVINGS
• Funding related to COVID-19 expiring • Stagnating enrollment for some districts
SOURCES: ALVIN, FRIENDSWOOD, PEARLAND ISDS/COMMUNITY IMPACT
Projected shortfalls in Houston
The takeaway
-$600M -$500M -$300M -$400M -$200M -$100M $0
In Galveston County, Clear Creek ISD is facing a $13.4 million shortfall, Chief Financial Officer Alice Benzaia said. Houston ISD, which is the largest school district in the state, is looking at a shortfall of over $500 million. Some of the districts facing shortfalls have looked to make cuts in a variety of areas. Cy- Fair ISD, for example, could cut more than 600 staff members to help close the gaps.
Savings and cutting of certain expenses in each district are helping balance the books. However, with the lingering issues ongoing across Texas, early projections for FY 2025-26 show those financial challenges could be in place next year too. Meanwhile, school districts both across the state and the Greater Houston area are continuing to struggle with their budgets, with many facing shortfalls varying in size.
SOURCES: CLEAR CREEK, CONROE, CY-FAIR, HOUSTON ISDS/COMMUNITY IMPACT
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