Dripping Springs ISD Board of Trustees adopts $123.68 million total budget with deficit

DRIPPING SPRINGS — Following a public hearing during it's June 24 meeting, the Dripping Springs ISD Board of Trustees unanimously approved a $123.68 million total budget for the 2024-25 fiscal year, with a deficit of $2.89 million.

The district is projected to end the 2023-24 fiscal year with a fund balance of approximately $47,774,188 million, which represents approximately six months of fund balance, according to budget documents. The board of trustees previously adopted a fund balance policy to ensure deficit budgets do not drain the district’s fund balance below a threshold of four months of operating expenditures.

Three-year projections indicate the district will continue to face deficit budgets; however, fund balance levels will be able to sustain the deficits through the 2026-27 fiscal year. The district’s preliminary property value estimates reflect 5.11% growth for 2024-25, whereas past years have averaged 10% or higher.

Additionally, the district is expected to remain in recapture status in the 2024-25 budget year. Recapture is the process by which funds in excess of entitlment are redistributed to other districts by the school finance system, according to the Texas Education Agency. The estimated cost of recapture for the current year is expected to decrease by approximately $23 million, due to the passage of Senate Bill 2, according to budget documents. This bill included a $100,000 homestead exemption and the impact of that legislation is reflected in lower recapture costs, which is expected to be approximately $9.5 million.

DSISD’s budget for the 2024-25 school year totals $123,683,092 in expenditures and is broken down into three main funds: general fund at $100,393,601, food service/child nutrition at $4,828,903 and debt service at $18,460,588.

Highlights of the 2024-25 budget include the following:

• Projected student enrollment: 8,900

• 1% increase on midpoint of the applicable pay grade for all employees

• Beginning teacher’s salary: $55,500

• Seven teacher contingency positions

• Accelerated instruction funds: $45,800 budgeted as identified in Section 29.081(b-2) of the Education Code.

• Increase local revenue: $230,000

• Reduction of 23 full time equivalent positions (FTEs): $967,500

• Reallocation of FTEs: $170,300

• Reduction in department and campus operating costs: $620,000

• Increase district contribution for health insurance premiums to $380 per month

• Decreased recapture due to $100,000 homestead exemption/lower property value growth

“We included a 1% pay increase. We wanted to include more, I know that the board did, but in order to meet that 2% deficit parameter and not have to identify additional reductions, the budget could only tolerate about a 1% pay increase for staff. We have included language in the compensation plan that allows the board to approve a one-time payment [for staff] if certain parameters were met,” said Chief Financial Officer Gina Mitschke. “Those parameters include: increasing fund balance this year if that happens at the end of the year; increasing ADA next year; or enrollment comes in higher than what we projected. That will bring in additional funding, which may allow the board to provide a one-time payment. We will absolutely bring that back in if we see that is an option as we proceed throughout the year.”

While the district was hoping to do more than a 1% pay increase for staff, trustee Rob McClelland said that he is thankful that they were able to do something: “We did 1%. That’s not enough, we know that, but we did that. And I appreciate that because had we not with the health insurance premium increase, most of our teachers would have less money this year than last year. For me, that is unacceptable. I am thankful that we found a way to do it.”

Another trustee, Kim Cousins, stated that they should be looking at other areas that are within their control in order to get more funding for potential future pay increases.

“We just got back from a state conference and there are so many districts that, the bigger the district, the bigger the cuts. There are districts in the state of Texas that are closing public schools. They can no longer afford to keep them open,” Cousins said. “We are not cutting programs; we are giving a 1% increase … Right now, we are sitting at roughly 95% [attendance] and if our attendance increases [by] 1% to 96%, that’s going to be about $700,000 and that’s enough to get a teacher raise that I would 100% support.”

The board of trustees also held a public hearing for the maintenance and operations tax rate, proposed at $0.7552 per $100 valuation — MCR of $0.6169, plus $0.08 golden pennies and $0.0583 copper pennies — and the debt service tax rate at $0.35 per $100 valuation.

However, the DSISD Board of Trustees will not adopt the tax rate until August or September after receipt of certified values, as well as the maximum compressed rate from the Texas Education Agency. The tax rate must be adopted by Sept. 30, 2024.

To view the full 2024-25 budget, visit bit.ly/4eExgYk.