Arlington ISD trustees agree more work needs to be done on the district’s general fund budget for the 2024-25 academic year, but they remain hopeful.
The school board received two presentations May 16 detailing an early draft of Arlington ISD’s 2024-25 budget and potential salary increases for staff. The preliminary budget does not include potential pay raises for employees and was based on estimated enrollment and tax revenues.
The next general fund budget has estimated revenue of $550,912,064 and calls for $629,827,178 in spending — creating an almost $79 million deficit.
However, Arlington ISD plans to carry $10 million from expiring federal COVID relief funds — which must be used by Sept. 30 — and transfer $40 million from cost-saving initiatives from the pandemic to lower the deficit to $28,915,114.
“Those are both one-time fixes,” Chief Financial Officer Darla Moss told trustees.
Trustees will meet at least twice in June to discuss and adopt the final budget by June 30. The 2024-25 fiscal year begins July 1, 2024, and ends June 30, 2025.
Trustees emphasized the budget is a conservative projection. Arlington ISD estimated its reserves will be more than $258 million for the next budget.
“This does look bleak, but I’m hopeful for the future that we will right size,” trustee David Wilbanks said. “We’ll look to cut and ensure that we yet again end up in the positive or close to it, but we may have to dip into fund balance.”
Arlington ISD also has around $70 million set aside for capital projects that can be shifted to general fund operations.
“Although we’re probably going to be adopting a deficit budget, we’re in a pretty good place, and it’s because we’ve been conservative for so many years and putting that money away for a time just like this,” board President Justin Chapa said.
What are the district’s budget challenges?
Arlington ISD faces several budget challenges for the upcoming 2024-25 academic year, including:
- The district will send money to the state under the recapture law. Arlington ISD expects to send an estimated $6,589,388 to the state. The district sent $2,365,867 during the 2023-24 academic year.
- The Texas Legislature did not increase public education funding in 2023.
- Federal pandemic relief funds end soon.
- Arlington ISD also has to meet the state’s mandated safety and security requirements. Trustees appreciate the extra layer of safety but also point out that the district has to pay out of pocket for armed guards.
Moss agreed that the district has strong reserves but advised not dipping into it too much, she said. The Texas Education Agency recommends that the unassigned fund balance is equal to at least 75 days operating expenditures, she told the Arlington Report.
While the district has brought previous budgets back to surpluses, Moss said not to expect that for the 2024-25 school year.
“The swing, I don’t anticipate a swing this year,” she said.
Arlington ISD’s enrollment is expected to decrease by 1,131 students in the new school year. The budget is built on an enrollment of 53,551 students. As of April 15, 54,682 students were enrolled.
Fewer students equals fewer dollars from the state. Public schools receive state funding based on the number of students attending classes.
Board Vice President Sarah McMurrough challenged her fellow trustees and the superintendent to not be resigned by the enrollment decline projections.
“I do believe that we are capable of improving student enrollment,” McMurrough said. “I do believe that we are capable, and our campus staff and families are capable of partnering with us and improving student attendance.”
McMurrough has followed school districts similar to or larger than Arlington ISD’s size, she said, and it’s rare for them to adopt a budget not in a deficit.
School districts statewide have projected budget shortfalls. Among Fort Worth-area school districts, Keller ISD has anticipated a deficit of more than $27 million. Northwest ISD has discussed potential tax rate increases to offset its $14 million shortfall in its 2024-25 budget.
Fort Worth ISD, however, just proposed its first balanced general fund budget in seven years.
Arlington ISD has adopted a deficit budget since Wilbanks was elected in 2019, but the district always turned it around to a positive number, he said. This situation is not the same.
“Our ability to come back from a deficit this big, even with those conservative investments, is going to be tough,” Wilbanks said.
The school board adopted the 2023-24 budget with a $5.5 million general fund deficit. The budget is projected to end with a deficit more than $10 million, but Moss said that number may shrink.
“We still have a lot of expenditures out there to do through June 30, so that number is subject to change,” she said. “And likely it will change to the positive. Not to a positive amount, but that deficit will grow smaller.”
For the 2023-24 academic year, the school board also approved a 4% salary increase for teachers, librarians and other employees for the fourth consecutive year. Starting pay for new teachers increased to $62,500.
Arlington ISD budget timeline
Here’s what to expect over the upcoming months as Arlington ISD trustees work on the 2024-25 budget.
- June 18: Board holds a public hearing on the proposed budget, and trustees are expected to consider adopting the budget.
- June 30: Budget adoption deadline.
- July 1: The 2024-25 fiscal year begins.
- July 25: Arlington ISD receives certified values from the Tarrant Appraisal District.
- Sept. 30: Property tax rate adoption deadline.
Trustees may also meet June 11 and June 27, if necessary.
Arlington ISD is 6% above market in terms of average salary, said Keith McLemore, senior human resources and compensation consultant with the Texas Association of School Boards.
The district is looking at a 2% to 4% pay increase for teachers and a midpoint raise for all other staff, plus other adjustments to benefits. Here’s how much each raise would cost the district:
- A 4% increase would cost $19 million, or $25.6 million with additional adjustments. Teacher starting salary would be $64,600.
- A 3% increase would cost $14.5 million, or $21 million with additional adjustments. Teacher starting salary would be $64,000.
- A 2% increase would cost $10 million, or $17 million with additional adjustments. Teacher starting salary would be $63,300.
Dang Le is a reporting fellow for the Arlington Report. Contact him at dang.le@fortworthreport.org or @DangHLe. At the Arlington 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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