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ENROLLMENT DECLINES A large portion of the revenue that goes to the Plano ISD budget is based on enrollment. Earlier this year, PISD o cials were told the drops in enrollment the district has seen in recent years is expected to continue in the years ahead. Plano ISD enrollment per school year *PROJECTED
BUDGET BREAKDOWN
Following the approval of the scal year 2022-23 budget by the Plano ISD board of trustees in June, o cials said the district faces a budget shortfall that is becoming increasingly di cult to ll.
De cit
Revenue
Expenditures
0
10K
20K
30K
40K
50K
60K
2018-19
-$3M
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
53,057 52,629
-0.81%
-1.5% -4.7%
2019-20
-$33.57M
50,154
49,400
2020-21
-$10.43M
-0.96%
48,927*
-1.14%
48,369* 48,049* 47,563* 47,126*
2021-22
-$19.66M
-1.01% -0.66% -0.92% -0.77%
2022-23
-$38.9M
$0
$500M
$600M
$700M
$800M
46,764*
SOURCES: PLANO ISD, ZONDA EDUCATION COMMUNITY IMPACT NEWSPAPER
SOURCE: PLANO ISD COMMUNITY IMPACT NEWSPAPER
to the budget document. PISD is projected to earn about $698 million in revenue in FY 2022-23. Expenditures are projected to reach about $736 million, leaving the dis- trict with a projected budget de cit of more than $38 million. The majority of the budget’s planned expenditure increases comes in the form of a rising recapture pay- ment. Property values in the district rose by about 7%, which will generate an additional $13.4 million in prop- erty tax revenue; however, the dis- trict’s recapture amount is expected to increase by $13.9 million, according to the budget. The budget shows that PISD is pro- jected to pay nearly $227 million in recapture funds during FY 2022-23. Recapture redistributes property tax dollars from property wealthy districts to those the state deems property poor. PISD can actively address the bud- get de cit with minimal e ect on sta and students because of a healthy fund balance, Deputy Superintendent
ISD is working hard to recruit and retain sta ,” Superintendent Theresa Williams said in an email. The Texas Association of School Boards o ers consulting services to school districts, including PISD. The TASB’s Human Resources Services department can provide customized pay studies, employee surveys and reviews of operations and sta ng, according to its website. Districts across the state are dedi- cating large pay increases to faculty and sta ahead of the new school year, said Amy Campbell, director of the TASB’s HR Services. “Those pay rates are increasing by double-digit percentages in some dis- tricts to get to more livable wages for its sta ,” she said. “So they’re having to make some tough decisions about where to spend the limited funds they have.” School districts typically reserve between 80%-85% of their budgets for sta ng costs, Campbell said. Dis- tricts cannot make big changes in
Johnny Hill said. The district has options, including a proposed vot- er-approval tax rate election, or VATRE, that was presented at a board of trustees meeting Aug. 2. “There’s not just one way to get out of a budget de cit,” Hill said. Competitive pay Included in the budget are general pay increases for district faculty and sta . Teachers, librarians and nurses are receiving a 4% pay increase, and all other employees are receiving a 3% pay increase. About 86% of the expenditure budget is spent on pay- roll for employees. PISD is expected to spend about $13 million more on instruction this year, despite decreasing its sta size by about 7% in the past ve years. Part of this comes down to pay increases, which allow PISD to maintain a com- petitive balance with surrounding dis- tricts, according to o cials. “At a time when educators are fac- ing more challenges than ever, Plano
paying employees without a ecting the rest of the budget. “It’s like turning the Titanic,” she said. Each year, a district decides how much money it can spend while remaining sustainable. Even with a projected de cit, a district can con- sider itself sustainable while looking ahead by a year or two, Campbell said. PISD started its scal year with about $255 million in its fund bal- ance, the budget shows. That gure is expected to fall to about $215 million by the end of the scal year, per PISD. “A district would say, ‘We’re willing to adopt a de cit budget to give our teachers a pay increase this year,’” she said. ‘“Because if we don’t, we’re going to lose 20% of our teaching sta and not be able to ll classrooms with quali ed, certi ed teachers.’” Average daily attendance Texas allots funding per student based on an average daily attendance rate, according to the Texas Education
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COMMUNITY IMPACT NEWSPAPER • COMMUNITYIMPACT.COM
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