Megan Navarro
DRIPPING SPRINGS — During its Feb. 2 meeting, the Dripping Springs ISD Board of Trustees unanimously approved assumptions and parameters that will shape a preliminary general fund budget for the 2026-27 fiscal year.
“They are intentionally preliminary, I guess you could say, so that we can start building and coming up with some of those base revenue calculations,” said chief financial officer Randy Rau during his presentation to the board. “Just as late as today, some of those assumptions changed when we got our certified values in from the state just this past Friday. So, I’ve been working even today on some of the revenue calculations, but, again, these are just a starting point to get it going.”
The key assumptions and parameters include the following:
• Student enrollment of 8,940 — reduced to 98% for funding estimates
• Average daily attendance rate of 95.25% — based on a five-year average
• Property value growth estimate of 4%
• 99% collection rate for property taxes
• 1% pay increase for all staff
• Number of new full-time employees to be determined
• Health insurance contribution at $405/month
• 1% projected increase in operational budgets to account for inflation
• Budget parameter level of deficit approval based on board policy of 2%
• Maintaining the same tax rate
According to agenda documents, general fund revenue projections are based on current law and assume the maximum compressed tax rate and, while the Teacher Retention Allotment provided additional funding in the first year of the two-year cycle and increased the compensation baseline for teachers, the allotment does not increase in the second year. As a result, any locally-funded pay increases in 2026–27, slower student growth and impacts on inflation place additional pressure on district resources and limit revenue growth.
Because of this, the administration recommended a 1% pay increase for all staff as a preliminary planning assumption.
Trustee Rob McClelland asked if there were any major deviations from previous budget parameters and assumptions.
The chief financial officer responded that the only thing that was scaled back on was the property value growth, which is currently at 4%, but it was at 5% last year: “Since they changed [the homestead exemption] going from the $100,000 to $140,000, it almost reset everything, so the year we are in is almost like base year. So I kind of wanted to scale it back and keep in mind, some of these were done before we even got our state values in,” Rau said.
Traditionally, the budget parameters would be conservative estimates, McClelland explained, so preliminarily looking at a 4% property value growth is a good place to start.
Rau explained that as district administration goes through the budget process, the board will be informed of any updated assumptions and parameters. Additionally, the child nutrition and debt service fund budgets will be developed and presented to the board at a later workshop.
The Dripping Springs ISD Board of Trustees meets next at 6 p.m. Monday, Feb. 23.
