Texas School Districts Warn of Looming Budget Deficits

Multiple public school districts in Texas are warning about possible budget deficits as they work on their budgets for the 2024-25 school year. These deficits have been linked to stagnant funding and other economic pressures.

The Budget Challenge

Bastrop Independent School District Superintendent, Barry Edwards, recently raised concerns about a predicted budget shortfall of nearly $8 million for the next academic year. Edwards attributes the deficit to several factors, among them the termination of the Elementary and Secondary School Emergency Relief funding created during the pandemic, the rising cost of living, and the Texas Legislature’s decision to forgo additional funding for public schools.

All school districts in Texas primarily rely on student attendance for their funding. According to the superintendent, although Bastrop ISD witnessed a rise in enrolment, the district is still indicating a budget shortfall due to a drop in attendance percentage when compared to pre-pandemic levels – a factor that has reduced revenue.

Additional Factors

Despite skyrocketing inflation and the increasing demands of educating students effectively and safely, the Basic Allotment per student has remained static since 2019. This allotment, currently pegged at $6,160 per student, is provided to each district as a form of financial aid to ensure a basic level of education for residents, as detailed by the Texas Education Agency.

In an attempt to balance the impending shortfall, Edwards stated plans for staffing and program improvements would include leaving unfilled administrative positions and reducing all department budgets by 15%.

State-wide Concerns

However, Bastrop ISD is not the only district facing financial difficulty. In the previous year, Austin ISD experienced a budget shortfall amounting to $52 million. Over 86% of its general funds are used to pay teachers and staff. Plans to halve this deficit throughout the financial year were implemented, with the district attributing its significant deficit to inflated living costs and the Texas Legislature’s decision to not increase the basic student allotment.

Proposed Solutions

Governor Greg Abbott called a special legislative session in 2023 in an attempt to pass an education bill that would include a school voucher plan. This plan would allow students to receive $10,500 annually in education savings accounts to fund private school education. The proposed legislation was met with opposition from both Democrats and 21 Republicans who voiced concerns against the voucher plan. Consequently, the special session ended without the approval of the said education bill, leaving districts across the state to contend with stagnant budgets.

In response to the escalating financial challenges, the Dallas Independent School District has projected an over $80 million deficit for the coming year, while the Fort Worth ISD Board of Education has resolved to cut staff to mitigate projected budget deficits.