CSISD 2024-2025 Budget

Information

May 21, 2024

 Topics For Discussion

• 2023-2024 Budget Projections

• Future Budgets under current law
• 2024-2025 Preliminary General Fund Data

• Revenue
• Property Values
• Compensation and Expenses

• Fund Balance
• Budget Timeline
2023-2024 General Fund Data
 CSISD 2023-2024 Budget Update
Current Amended Estimated 2023-2024
Description Original Budget Budget 2023-2024 Actuals
Enrollment 14,717 14,398
ADA 13,558 13,315
Operating Revenue
Local Revenue $ 102,815,086 $ 99,715,086 $ 101,175,695
State Revenue $ 38,576,359 $ 43,770,448 $ 42,490,070
Federal Revenue $ 2,900,000 $ 2,900,000 $ 1,562,937

Total Revenue $ 144,291,445 $ 146,385,534 $ 145,228,702

Appropriations:
Expenses $ 146,011,667 $ 148,278,755 $ 147,547,067
Recapture $ - $ - $ -

Est. Total Appropriations $ 146,011,667 $ 148,278,755 $ 147,547,067

Est Operating Revenue less
Appropriations $ (1,720,222) $ (1,893,221) $ (2,318,365)

Insurance Proceeds $ - $ -
Extraordinary Expenses - Hail & Roof $ - $ (597,534)
Net Loss to Extraordinary Items $ - $ - $ (597,534)

Estimated Net Affect on Fund Balance $ (2,915,899)

TIA has been included in the amended budget and expenditure projections.
 2023-2024 Budget Facts

Legislative impact:
• Increased the homestead exemption from $40k to $100k
• Required tax reductions applied to the frozen levy back to 2019
• Required an additional $0.10 of tax rate compression
• Provided additional state revenue only to make up the loss from the
above

SHARS changes resulted in federal revenue decline of $2.5 million for

2023-2024 and expected be reduction of $1.5 million for future years
Additional Safety Funds of $15,000 per campus

No change in the Basic Allotment

Investment Earnings continue to increase

Last fiscal year for ESSER

Current Funding Law and Future
Budgets
 Current Funding Implications

School Districts are hopeful for funding changes in the 2025 legislative session resulting in current deficit
budgets being described as “Fiscal Gap”.

FISCAL GAP – The difference of revenues and expenditures over the long-term (which should balance
over time), while also indicating the fiscal policy changes necessary to prevent future shortfalls.

Districts must be careful in current budgeting to ensure budget deficits (and the use of fund balance) is a
fiscal gap and not permanent.

HB 3 passed in 2019 requires school districts dedicate at least 30% of any funding increase for salaries
and benefits of which 75% must be utilized for classroom teachers, counselors, librarians and nurses.

Districts must be careful to not overextend in 2024-2025 in this area.

 Future Funding Example

The below is for illustration purposes only and not CSISD numbers:

24-25 Use of 25-26 25-26 Required 25-26 Net funding

Fund Balance Additional Salary Fund Use shortfall for raises
for Raises Revenue $1.8 mill but $2 mill (And still have
$4 mill * $6 mill spend $4 mill general inflation deficits)

*Actual use of
Fund Balance
$8 mill.
2024-2025 Preliminary General
Fund Information
 CSISD 2024 – 2025 Budget Goals

• Recruit and retain a high-quality workforce to support instruction.

• Support quality instruction in the way of staffing, supplies, equipment, and
services.
• Utilize data available when making budgetary recommendations that are in
the best interest of the district.
• Maintain a financially healthy fund balance.
• Plan for the end of ESSER and TCLAS Funding.
• Survive
CSISD Enrollment Forecast
 CSISD Property Value Growth History

Net Taxable % Change

2015 7,863,376,409 6.784%
2016 8,726,280,920 10.974%
2017 9,727,659,405 11.475%
2018 10,443,586,767 7.360%
2019 10,969,321,143 5.034%
2020 11,179,141,149 1.913%
2021 11,638,646,490 4.110%
2022 12,975,306,902 11.485%
2023 $40K 15,226,826,109 17.352%
2023 $100K 14,438,599,031 11.278%
2024 Prelim 15,721,269,898 8.884%
 Impact of Property Value Growth
Absent a change in legislation, an increase in property values results little additional revenue
due to the requirement of compressing the tax rate

The tax rate compression is not to go above a ceiling of $0.7655 or floor of $0.6969 (with $.08
of local option pennies)

Because CSISD is at the floor of the tax rate for 2023, the 2024 rate even with 8% property
value growth is estimated to decline by $0.00233 which will result in more tax revenue per
student

As tax revenue per student increases, state revenue declines by either:

1. Increasing local share (an offset to state revenue), or
2. Increased recapture payments to the state
 2024-2025 Estimated Revenue

2023-2024 General Fund 2024-2025 General Fund

Difference
Estimated Revenue Estimated Revenue

Enrollment 14,366 14,469 103

ADA 13,270 13,349 79

Property Taxes $ 96,478,422 $ 101,853,760 $ 5,375,338 **

Investment Earnings $ 3,470,000 $ 3,000,000 $ (470,000)
Misc Local Revenue $ 1,402,570 $ 1,552,570 $ 150,000
State Revenue (Including TIA) $ 34,608,081 $ 30,148,956 $ (4,459,125) **
TRS on Behalf $ 7,881,939 $ 7,881,939 $ -
Federal Revenue (SHARS & IC) $ 1,562,000 $ 1,200,000 $ (362,000)
Estimated Total Gen Fd Revenue $ 145,403,012 $ 145,637,225 $ 234,213

Assumes an estimated 8% property value growth

** With very similar enrollment, as property tax revenue increases, state revenue declines.

Investment Earnings are based on 12 months. If budget realignment occurs, this will reduce by 2 months of earnings.
 General Fund Expenses Summary

Based on the 2023-24 Budget

 Recommended Healthcare Plan 2024-2025

For 2023-2024, CSISD contracted

CURRENT RENEWAL
with BCBS of Texas for a fully Employee
Current BCBS Renewal BCBS District Monthly
insured healthcare plan for our Rates Rates* Contribution
Monthly
Contribution
employees and dependent
families. Copay 1500-7K ER Plan
Employee Only $580.47 $615.30 $472.00 $143.30
Employee & Spouse $1,164.78 $1,234.67 $472.00 $762.67
Employee & Child(ren) $1,011.62 $1,072.32 $472.00 $600.32
In March of 2024 CSISD solicited Employee & Family $1,686.69 $1,787.89 $472.00 $1,315.89
proposals again for a fully insured
Consumer HSA 3K-6900 Plan
healthcare plan. Employee Only $495.47 $525.20 $510.00 $15.20
Employee & Spouse $992.25 $1,051.79 $510.00 $541.79
Employee & Child(ren) $862.04 $913.76 $510.00 $403.76
BCBS of Texas once again came Employee & Family $1,435.95 $1,522.11 $510.00 $1,012.11
back with the best value for CSISD
HMO 1500K-7K Plan
and our families proposing an Employee Only $555.87 $589.22 $472.00 $117.22
overall increase of 6% in Employee & Spouse
Employee & Child(ren)
$1,114.87
$968.34
$1,181.76
$1,026.44
$472.00
$510.00
$709.76
$516.44
premiums. Employee & Family $1,614.16 $1,711.01 $510.00 $1,201.01

HMO 2500-8K Plan

A committee met with Gallagher Employee Only $508.66 $539.18 $510.00 $29.18
Employee & Spouse $1,019.03 $1,080.17 $510.00 $570.17
Consulting to recommend the Employee & Child(ren) $885.24 $938.35 $510.00 $428.35
distribution of premiums between Employee & Family $1,474.88 $1,563.37 $510.00 $1,053.37

CSISD and the employee.

(CSISD’s contribution per employee is

the highest amongst our peer groups.)
 Compensation Estimates

Something In
Employee Group 0% 2%
Between

Teachers/Libr/Nurse $ 490,519  Something $ 1,540,085

between 0 and
2%
Admin/Prof $ 500,065
 Differentiated
Paraprofessional raise between $ 405,523
pay groups
Auxiliary $ 425,700
 Combination of
$ 490,519 a raise and
Estimate Pay Only $ 2,871,373
retention
Benefits $ 49,051 stipend $ 186,639
Estimated Total Cost $ 539,570 $ 3,014,941

The above are estimates only – beginning teacher pay is calculated at $52,000 for 2%.
Includes some market adjustments at 2%
 CSISD Inflation Examples

2019-2020 2023-2024 %

Property/Casualty $ 1,022,658 $ 2,966,096 190%

Insurance
Fuel $ 322,195 $ 752,000 133%

Utilities $ 4,061,222 $ 4,651,652 15%

Health Insurance $ 6,754,957 $ 8,064,800 19%

(District Only)

The above is an additional $4.273 million over the 4 years with no additional funding.
  Revenue is expected to be very similar to that of 2023-2024
 Compensation and Benefits will remain a priority
 The recommended budget is anticipated to have expenditures
Summary of 2024-2025 Preliminary

exceed revenue
ADDITIONS:
 Inflation on mandatory supplies and services must be added to
expenditures (Healthcare, Property Insurance, BCAD, Security
Utilities and Fuel)
$4.2 Mill
 Fund the opening of the CTE Center (Utilities, Safety, Property Ins)
 Fund positions previously approved
 Account for the ending of ESSER and TCLAS
REDUCTIONS:
 Budget reductions for staffing realignment
 Budget reductions for Elementary and Secondary staffing based on $2.8 to
strict pupil to student formulas $4.5 Mill

 Campus and department reductions

Budget

 Maximize the use of other funding (Safety grants and ESSER for
September)
 Summary of Continued Budget Management Plans

• Review all resignations to determine if position is filled, on hold, or eliminated

• Review all Departments and Campuses budgets
• Monitor enrollment for campus staffing purposes based on class size
• Review of software usage (some eliminations will fund inflation on other
products)
• Review of standard contracted services
• Update inflationary budget items as actual amounts are determined
• Finalize the compensation plan for recommendation
• Continue budget reduction discussions into 2024-2025
 CSISD Fund Balance

Aug 31 2015 Aug 31 2016 Aug 31 2017 Aug 31 2018 Aug 31 2019 Aug 31 2020 Aug 31 2021 Aug 31 2022 Aug 31 2023
Nonspendable/Assigned $ 861,990 $ 116,163 $ 249,302 $ 338,649 $ 194,865 $ 586,208 $ 479,553 $ 1,074,984 $ 1,824,151
Committed - Const. $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 12,000,000 $ 9,000,000 $ 5,000,000 $ 5,000,000
Unassigned $ 14,765,948 $ 17,881,815 $ 20,736,222 $ 21,643,220 $ 22,642,780 $ 23,543,963 $ 25,175,565 $ 28,005,339 $ 32,338,156
Total $ 30,627,938 $ 32,997,978 $ 35,985,524 $ 36,981,869 $ 37,837,645 $ 36,130,171 $ 34,655,118 $ 34,080,323 $ 39,162,307
 Budget Timeline

Activity Date
Open Employee Candidate Pool March 4
Elementary enrollment and Staffing projections released March 1 - 10
Board Workshop - Budget Update March 19
Secondary enrollment and staffing projections released March 18-29
Department and campus budgets due March 31
New budget requests due (Personnel and Nonpersonnel) April 1
Board Workshop - Budget Update April 16
Preliminary Property Values released May 1
Board Workshop - Budget Update May 21
Board Workshop - Budget Update June 18
Board Meeting - Budget Update, Finalized Compensation Plan July 16
Certified Property Values received July 25
Maximum Compressed Tax Rate (MCR) announced by TEA Aug 1
Advertisements for the Budget and Tax Rate Public Hearing (last date Aug 9
Public Hearing and Budget and Tax Rate Adoption August 20
Questions/ Discussion