BRENHAM ISD FACING BUDGET DEFICIT TO END FISCAL YEAR
Brenham ISD anticipates to close out the current fiscal year in the red.
gives school board trustees a report on the district's
budget as it nears the end of the current fiscal year.
The Brenham School Board on Monday was presented with year-end projections for the 2022-23 fiscal year, which concludes on August 31st. The estimates show total revenues of $51,234,386 and expenditures of $55,013,431, leading to a deficit of $3,779,045.
The shortfall is attributed to the startup of the school district transportation department, safety and security items, the purchase of new weight room equipment and substitute contract fees that were higher than what was budgeted for.
Chief Financial Officer Thad Lasater said given today’s economic environment, Brenham ISD is not alone with its troubles, as many districts are struggling to stay revenue-neutral.
Also impacting year-end projections is a lower enrollment and average daily attendance (ADA) than what was accounted for when the budget was passed last August, leading to less state funding. The district initially expected an enrollment of 4,995 students and a refined ADA of 4,745, but is planning to end the fiscal year with enrollment of 4,749 and a refined ADA of 4,447.
The $3,779,045 deficit will pull from the district’s fund balance, which will end the fiscal year at $9,814,335. Lasater said this will put the district below the state’s recommended fund balance level and may impact its financial rating.
As the district crafts its budget for the upcoming fiscal year, eyes are on Austin to see how the Texas Legislature’s property tax relief proposal will affect school finances. Based on the tax rate compression planned, Lasater said the district’s projected maintenance and operations (M&O) tax rate will be $0.6692 per $100 valuation, reduced from the current M&O rate of $0.8546. The anticipated interest and sinking (I&S) rate was not provided. The state’s proposal includes “hold harmless” measures that would prevent the district’s funding from dropping off immediately.
Trustees criticized the state’s lack of support at this point in ensuring schools are well-funded enough to provide needed pay raises for teachers and staff. Trustee Kyle Hafner said the state’s allotment has not increased since 2019, but inflation has gone up since the start of this meeting. He continued by saying school districts cannot give their employees a raise if the state does not give the districts one, and urged the public to reach out to lawmakers so they make the matter a priority. Trustee Jared Krenek agreed, saying their voices only go so far as board members.
Board President Natalie Lange said Brenham ISD’s status as one of the largest employers in the county makes this issue not just about the school system, but the local economy as a whole. Trustee Kelvin Raven said whatever it takes to get employees a raise, the district needs to do it.
Further budget discussion is planned at the board’s next meeting on Tuesday, August 8th.