Fort Worth ISD is still adding up numbers to determine whether it will have a balanced budget for the 2024-25 school year.
The school board received its first public presentation of the next budget on April 23. Officials did not present how much they expect to spend for the next school year.
After the meeting, spokespeople declined to provide the total estimated expenditures for the 2024-25 budget.
“We are still working through the expenditure side of the proposed budget,” spokesperson Cesar Padilla said.
New expenditures are expected to be presented at the school board’s May 14 budget workshop, Padilla said.
Chief Financial Officer Carmen Arrieta-Candelaria expects revenue to decrease to $815.9 million for the 2024-25 budget. The projected 2023-24 school year budget has $817.7 million in revenue.
In January, Arrieta-Candelaria told the Fort Worth Report the district likely would face an estimated deficit of $44 million for the 2024-25 school year.
The current budget is projected to end with a deficit of nearly $43.4 million. Deficits are created when spending exceeds revenue.
School board member Tobi Jackson noticed reserves in the 2023-24 budget fluctuated as officials updated it during the past year. She questioned how many operating days the reserves can fund.
The 2023-24 budget is projected to have $358.3 million in reserves when it ends. The budget started with almost $401.7 million in reserves.
The reserves have enough funds to support the district for 158 operating days, Arrieta-Candelaria said. The goal is to have enough cash for 60 to 90 days.
Trustees are expected to discuss property values in May. The Tarrant Appraisal District told taxing entities it estimates preliminary property values will see a 12% increase over 2023, the CFO said. The increase likely will shrink when values are finalized later in the summer.
Budget dates to know
Fort Worth ISD trustees are working on the 2024-25 budget. Here’s what to expect over the next few months:
- May 14: School board members discuss property values and receive an update on the proposed compensation plan.
- May 28: Trustees consider adopting compensation plan and hear budget update.
- June 3: The school board holds a public hearing on the proposed budget.
- June 11: Trustees are expected to consider adopting the budget.
- June 30: Deadline to adopt budget.
- July 1: 2024-25 fiscal year begins.
The chief financial officer emphasized to trustees one of the district’s priorities is to pass a balanced budget. The district has operated on a deficit budget for more than a decade.
Since 2022, the CFO has emphasized the transition to a balanced budget could take two years.
School board President Camille Rodriguez previously told the Report she was confident the district would achieve a balanced budget. She called it her No. 1 priority.
Trustee Kevin Lynch emphasized in June 2023 he wanted to see a balanced budget for the 2024-25 school year after the board approved a deficit financial plan. Lynch was one of two trustees who voted against the current budget.
“Fundamentally for me, I want to see a balanced budget. I like some of the things we’re doing for some of the people in the district, but I think we need to be willing to make some concessions as a district, too,” Lynch said at the time.
The chief financial officer pointed out many of the same issues that complicated past budgets persist.
Declining enrollment is hurting the district’s bottom line. The next budget is built on a student enrollment of 69,342 — a 1,333 drop from the current enrollment of 70,675.
Fewer students means fewer funds from the state.
Public schools receive state funding based on the number of students who attend classes. Attendance rates improved in the district, the chief financial officer said. The district expects to see an average daily attendance rate of 90.5% during the new school year.
“That is a bright spot,” she said.
Trustee Anne Darr asked about the amount of excess property tax revenue Fort Worth ISD will be required to send back to the state under the recapture — or Robin Hood — law. Under the law, the state takes excess local revenue from property-rich districts and gives it to property-poor districts.
The CFO expects the district will send an estimated $7.4 million back to the state. Fort Worth ISD sent $2.3 million under the recapture law during the 2023-24 school year, she said.
Other budget issues pointed out by the chief financial officer include:
- Stagnant public education funding from the Legislature.
- A lack of state funding for required safety and security measures.
- The end of federal pandemic relief funds.
- Large, one-time purchases, such as textbooks, equipment replacement and building needs.
- Rising contributions to the Teacher Retirement System of Texas.
Jacob Sanchez is an enterprise journalist for the Fort Worth Report. Contact him at jacob.sanchez@fortworthreport.org or @_jacob_sanchez. At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.
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