Cy-Fair ISD anticipates $73.6M budget shortfall due to inflation and lack of state funding

Cy-Fair ISD officials presented a budget shortfall of more than $73.6 million for the 2023-24 fiscal year on February 12.

The update was delivered by CFISD Chief Financial Officer Karen Smith, who highlighted a 19% increase in inflation rates from September 2019 to August 2023 as a significant factor.

Smith also emphasized the continued inadequacy of state funding, pointing out that as local property values rise, state funding decreases.

Key Details:

– The state determines each district’s funding based on a complex formula involving enrollment, attendance, and district size.
– The district anticipates $1.2 billion in expenses, even after receiving an estimated $65 million in federal stimulus funds, resulting in the $73.6 million shortfall.

Challenges and Solutions:

– Smith noted that districts statewide face similar challenges due to the state funding formula.
– To address the shortfall, the district is considering increasing the maintenance and operations tax rate, cutting expenses in non-payroll areas, and seeking new revenue sources.
– Board President Scott Henry and trustee Julie Hinaman suggested forming committees to explore potential funding sources and cost-saving measures.

Additional Insights:

– Despite Texas reporting a $32.7 billion surplus, districts like CFISD continue to grapple with funding issues.
– CFISD’s optional homestead exemption of 20% resulted in an $81 million loss last year, impacting district programs.
– Superintendent Doug Killian has discussed relief options for these losses with state officials.

In conclusion, while facing financial challenges, CFISD seeks legislative support and explores internal strategies to address the budget shortfall.