[00:00:02]
[I. CALL TO ORDER]
FIRST THING WE NEED TO DO IS JUST ESTABLISH A QUORUM.WE HAVE ALL MEMBERS PRESENT TONIGHT. SO WE DO HAVE A QUORUM.
[III. PUBLIC MEETING TO DISCUSS THE 2025-2026 BUDGET THAT WILL DETERMINE THE TAX RATE THAT WILL BE ADOPTED. Public participation in the discussion is invited. ]
AND THE PURPOSE OF THIS PUBLIC HEARING IS THE PUBLIC MEETING TO DISCUSS THE 2025-2026 BUDGET THAT WILL DETERMINE THE TAX RATE THAT WILL BE ADOPTED. AND, YOU KNOW, WE ARE INVITING PUBLIC PARTICIPATION IN THIS MEETING.THANK YOU, MR. CAVINESS. GOOD EVENING EVERYONE.
I AM GOING TO START THE MEETING HERE. GOING OVER JUST THE BUDGET CALENDAR AND SOME OF THE CHALLENGES THAT CISD HAS BEEN FACING, AS WELL AS RESPONSES TO THOSE, AND THEN TALK ABOUT A MULTI-YEAR BALANCED BUDGET PLAN.
THIS IS THE BUDGET CALENDAR. AND AS YOU CAN SEE, THE BUDGET STARTS REALLY BACK IN THE FALL.
AND THEN IT GETS INTO FULL FORCE STARTING IN JANUARY.
AND SO WE ARE ALREADY DOWN HERE AT THE BOTTOM OF THIS LIST IN AUGUST 25TH AT THE PUBLIC HEARING.
THIS SLIDE SHOWS SOME OF THE CHALLENGES THAT THE DISTRICT IS FACING.
THE IMPACT OF INFLATION ON DISTRICT COSTS HAS BEEN SIGNIFICANT.
FOR EXAMPLE, STARTING TEACHER SALARIES HAVE INCREASED 21% SINCE 2020.
THE BASIC ALLOTMENT ALLOWS DISTRICTS TO SPEND FUNDS WHERE THE LOCAL NEEDS ARE.
THIS SUMMER, THE LEGISLATURE PROVIDED ADDITIONAL FUNDING TO DISTRICTS, BUT THESE FUNDS ARE REQUIRED TO BE SPENT ON SPECIFIC ITEMS, WHICH WILL COVER A LITTLE BIT LATER. BUT RECRUITING TEACHERS AND RETAINING THEM IS A PRIORITY FOR COPPELL ISD.
IT REQUIRES THAT WE PROVIDE TEACHERS WITH A LIVING WAGE AND COMPETITIVE PAY INCREASES.
AND WITHIN COPPELL ISD, THE REGENERATION OF NEIGHBORHOODS THAT TYPICALLY BRINGS IN NEW STUDENTS HAS BEEN REDUCED DUE TO THE INCREASED PRICE POINT OF HOMES, AS WELL AS HIGHER INTEREST RATES. SCHOOL DISTRICTS ARE FUNDED BASED ON A FORMULA WHICH USES A STUDENT'S ATTENDANCE RATE TO DETERMINE THE BASIC AMOUNT ALLOTTED. ON TOP OF THE BASIC ALLOTMENT ADDITIONAL FUNDING IS PROVIDED FOR STUDENTS THAT NEED ADDITIONAL SERVICES.
AS THE DISTRICT WAS GROWING AND HOUSES WERE BEING BUILT AND AS WELL, INTEREST RATES WERE LOW, THE DISTRICT WAS PROJECTED TO REACH 14,000 STUDENTS.
HOUSING STARTS HAVE DIMINISHED AS THE MAJORITY OF THE DISTRICT HAS REACHED A BUILD OUT.
REGENERATION OF HOMES HAS SLOWED, AS EVIDENCED BY THE AGING POPULATION WITHIN THE DISTRICT.
THE PROJECTED DECLINE OF STUDENTS AS LARGER 12TH GRADE COHORTS GRADUATE AND ARE REPLACED BY SMALLER KINDERGARTEN COHORTS, IS ABOUT 200 STUDENTS PER YEAR. THIS EQUATES TO ABOUT $1.2 MILLION IN LOWER FUNDING EACH YEAR.
IT MEANS THAT THE DISTRICT NEEDS TO ADJUST EXPENDITURES TO MATCH $1.2 MILLION LESS IN REVENUE.
WE CAN SEE THIS ON THE NEXT SLIDE. THIS CHART SHOWS PROJECTED ENROLLMENT AS OF LAST FALL AND THE UTILIZATION OF THE DISTRICT'S FACILITIES BASED ON PROJECTED ENROLLMENT. BASICALLY, WHAT PERCENTAGE OF THE TOTAL SEATS IN OUR SCHOOLS ARE BEING FILLED? AS YOU CAN SEE, THE TOP PART OF THE CHART SHOWS THE PROJECTED ENROLLMENT IN ELEMENTARY SCHOOLS AND THE UTILIZATION OF THE AVAILABLE ELEMENTARY SEATS AS A WHOLE IN THE DISTRICT.
UTILIZATION WITHOUT ADDITIONAL CHANGES WILL FALL TO ABOUT 75%.
UTILIZATION SHOULD BE MUCH HIGHER TO EFFICIENTLY USE DISTRICT RESOURCES.
MIDDLE SCHOOL UTILIZATION IN THE CENTER OF THE CHART STARTS TO DROP SIGNIFICANTLY IN 2029-30, AS LOWER COHORTS FROM THE ELEMENTARY SCHOOLS ENTER MIDDLE SCHOOL.
[00:05:03]
HIGH SCHOOL UTILIZATION FALLS AROUND 2032-33.THIS DOES NOT MEAN LARGER CLASS SIZES. IT MEANS STAYING TRUE TO CURRENT STAFFING RATIOS AND BEING SURE TO REDUCE POSITIONS AS ENROLLMENT DECLINES AND FEWER STAFF IS NEEDED. BOTH TEACHERS AND SUPPORT STAFF AND ADJUST THE USAGE OF FACILITIES TO BEST SERVE STUDENTS, WHILE REMAINING COST EFFECTIVE AND GOOD STEWARDS OF TAXPAYER DOLLARS.
PRE-K IS REQUIRED TO BE FULL DAY. THE NUMBER OF STUDENTS REQUIRING SPECIAL EDUCATION SERVICES HAS INCREASED OVER 37% IN TEXAS AND OVER A 100% IN COPPELL ISD. ARMED SECURITY OFFICERS ARE REQUIRED ON EVERY CAMPUS, AND THE STATE RECOGNIZES THE NEED TO RECRUIT MORE PEOPLE INTO THE TEACHING PROFESSION, AS WELL AS HIGH INFLATION.
ON THE NEXT SLIDE, WE WILL SEE HOW SCHOOL FUNDING HAS CHANGED TO ADDRESS THOSE NEEDS.
MUCH OF THE FUNDING MAY ONLY BE USED FOR THE PURPOSE IT WAS PROVIDED.
FUNDING FOR PRE-K WILL INCREASE, BUT BY REDIRECTING FUNDING THAT WAS ALREADY PROVIDED, FUNDING TO ADDRESS THE NEEDS FOR SPECIAL EDUCATION WILL CHANGE FOR THE 26-27 SCHOOL YEAR, AND WE DO NOT KNOW THE IMPACT OF THOSE CHANGES YET.
AND FUNDING TO ADDRESS INFLATION WAS ADDED, BUT IT MAY ONLY BE USED FOR SPECIFIC EXPENDITURES.
FROM THESE FUNDING CHANGES, THE DISTRICT WILL HAVE APPROXIMATELY $2.9 MILLION IN NEW UNDIRECTED FUNDING TO ADDRESS RISING COSTS, BUT IT IS NOT ENOUGH TO REDUCE THE DISTRICT'S DEFICIT SPENDING.
COPPELL ISD IS WORKING TO ATTRACT AND RETAIN THE BEST TEACHERS.
HOWEVER, TEACHERS ARE ALSO FACING RISING COSTS.
THE COST OF LIVING INCREASE PROVIDED TO TEACHERS WITH FOUR OR LESS YEARS OF EXPERIENCE FOR THE 25-26 SCHOOL YEAR DOES NOT COVER THE 10% INCREASE IN HEALTH INSURANCE PREMIUMS FOR AN EMPLOYEE AND THEIR FAMILY.
WHILE THE LEGISLATURE PROVIDED FUNDS FOR TEACHER RAISES THIS YEAR.
IN SUMMARY, THE LEGISLATURE HAS HELPED TO PROVIDE TEACHER PAY RAISES FOR THE 25-26 SCHOOL YEAR, WHICH RELIEVES THAT PRESSURE FROM THIS YEAR'S BUDGET, BUT BEGS THE QUESTION OF HOW THE DISTRICT WILL PROVIDE THAT COST OF LIVING INCREASE FOR TEACHERS NEXT YEAR AND EACH YEAR IN THE FUTURE.
PROJECTED ENROLLMENT TRENDS CONTINUE DOWNWARD, INDICATING ABOUT A 200 STUDENT LOSS EACH YEAR FOR THE NEXT SEVEN YEARS, WHICH REDUCES FUNDING ANNUALLY BY $1.2 MILLION.
A $1.2 MILLION REDUCTION IN FUNDING AND THE NEED TO PROVIDE TEACHER PAY RAISES, WHICH TYPICALLY COST 2 TO $3 MILLION, MEANS THAT THE DISTRICT NEEDS TO MAKE UP A 3 TO $4.2 MILLION HOLE EACH YEAR.
FOR THE FIRST TIME IN MANY YEARS, THE DISTRICT REALIZED A DEFICIT IN 23-24.
THOSE DECISIONS NEED TO BE DONE THOUGHTFULLY, KEEPING ALL STUDENTS IN THE CENTER OF DECISIONS WHILE BEING INNOVATIVE, SO THAT THE DISTRICT RETAINS ITS REPUTATION FOR HIGH ACADEMIC STANDARDS AND RESULTS.
MANY DISTRICTS THAT ARE STRUGGLING WITH SIMILAR ENROLLMENT ISSUES OR FACE SIMILAR FINANCIAL DEFICITS, ARE HAVING TO TAKE ACTION TO BALANCE THEIR BUDGETS.
[00:10:07]
SOME DISTRICTS ARE KEEPING EXPENDITURES FROM RISING BY NOT PROVIDING RAISES FOR TEACHERS AND STAFF.THESE ARE THE DISTRICT PRIORITIES REGARDING THE BUDGET.
MAINTAINING COMPETITIVE TEACHER SALARIES IS KEY.
THE BUDGET SHOULD ALIGN WITH ENROLLMENT PROJECTIONS AND THE STRATEGIC PLAN.
AND WHILE SHORT TERM BUDGET CUTS CAN PROVIDE SAVINGS.
SO HOW HAS CISD RESPONDED TO THESE CHALLENGES? THE DISTRICT IS ENGAGING STUDENTS EARLY AT THE PRE-K OR KINDERGARTEN LEVELS WITH MARKETING EFFORTS, INCLUDING POPSICLE PARTIES AND TOURS TO HELP WITH KINDERGARTEN ENROLLMENT.
THE DISTRICT EXPANDED ITS LIMITED OPEN ENROLLMENT POLICY THAT ALLOWS STUDENTS FROM OUTSIDE THE DISTRICT TO FILL EMPTY SEATS IN CLASSROOMS. OPEN ENROLLMENT IS DESIGNED NOT TO INCREASE EXPENSE BY ADDING NEW CLASSROOMS THAT REQUIRE NEW TEACHERS.
IT'S IMPORTANT TO NOTE THAT 82% OF THE DISTRICT'S BUDGET IS FOR PERSONNEL.
POSITIONS HAVE BEEN REDUCED OVER THE PAST TWO YEARS THROUGH ATTRITION.
DEPARTMENT AND CAMPUS BUDGETS HAVE BEEN REDUCED.
ONE ALAMEDA ELEMENTARY CAMPUS HAS BEEN CLOSED, AND DISCUSSIONS ARE BEING HELD REGARDING ADDITIONAL CLOSURES, AND THE DISTRICT HAS IDENTIFIED AND IMPLEMENTED WAYS TO REDUCE DAILY OPERATING COSTS, WITH APPROXIMATELY $7.8 MILLION IN COST AVOIDANCE ACHIEVED.
AT THE BOARD WORKSHOP ON MAY 12TH THE MULTIYEAR BUDGET BALANCED BUDGET PLAN WAS PRESENTED TO ADDRESS THE DISTRICT'S DEFICIT AND BRING THE DISTRICT BACK TO A BALANCED BUDGET BY 20 28-29. THE PLAN THAT WAS DETAILED DURING THE WORKSHOP PROVIDES A ROADMAP TO GET THE DISTRICT'S BUDGET BACK INTO ALIGNMENT, WHILE KEEPING CHANGES AS FAR FROM THE CLASSROOM AS POSSIBLE.
THE PLANS INCLUDE SCHOOL CONSOLIDATIONS, WHICH WILL MAKE SUSTAINABLE REDUCTIONS IN THE BUDGET WHILE STILL ALLOWING STUDENTS TO BE SERVED AT THE DISTRICT'S STANDARD STUDENT TEACHER RATIOS. THE PLAN INCLUDES MAKING PROGRAMS MORE EFFICIENT, SO THEY'RE MORE, SO THAT THEY ARE SUSTAINABLE.
THE PLAN INCLUDES REDUCTIONS IN STAFFING FOR SUPPORT POSITIONS THAT ARE NOT CLASSROOM TEACHERS.
AS ENROLLMENT DECLINE EACH YEAR, THE PLAN INCLUDES REDUCTIONS IN TEACHERS IN PROPORTION TO THE DECLINING ENROLLMENT, AGAIN KEEPING THE DISTRICT'S STANDARD STUDENT TEACHER RATIOS.
THE PLAN INCLUDES REDUCTIONS IN OPERATIONAL EXPENSES, SUCH AS SHUTTLES BETWEEN BUILDINGS AND, AND POSSIBLY AN IMPLEMENTATION OF A FEE TO RIDE THE SHUTTLES.
THE PLAN INCLUDES EXPANDING STUDENT OPPORTUNITIES FOR WORK RELEASES AND FOR VIRTUAL LEARNING.
WHILE THE PLAN INCLUDES REDUCTIONS IN COURSES THAT HAVE LOW ENROLLMENT, ALL OF THE PLANS THAT THE DISTRICT HAS IMPLEMENTED SO FAR AND LOOK TO IMPLEMENT IN THE NEXT FEW YEARS ARE DONE WITH THE GOAL OF KEEPING THE CHANGES AS FAR FROM IMPACTING STUDENTS AS POSSIBLE.
ALL OF THE CHANGES ARE NECESSARY IN ORDER TO TAKE CARE OF THE DISTRICT'S TEACHERS AND STAFF AND PROVIDE THEM WITH A LIVING WAGE, AND IN ORDER TO FOCUS OUR FINANCIAL RESOURCES ON REMAINING A TOP TIER DESTINATION DISTRICT KNOWN FOR HIGH ACADEMIC STANDARDS, AND THAT PROVIDES OPPORTUNITIES FOR ALL STUDENTS TO THRIVE IN AN ENVIRONMENT WHERE THEY BELONG.
I WILL TAKE ANY QUESTIONS THAT THE BOARD MAY HAVE AT THIS TIME OR THE PUBLIC.
AND THEN I WILL INTRODUCE MISS ERICA DEVOULD TO GO OVER THE BUDGET.
[00:15:05]
ARE PAYING $17 MILLION TO RECAPTURE, AND YET WE ARE IN A BUDGET DEFICIT OURSELVES? RIGHT. SO AS I SAID, THE DISTRICT IS FUNDED BASED ON THE AVERAGE ATTENDANCE OF ITS STUDENTS AND IT IS NOT FUNDED ON TAX REVENUE. SO THE DISTRICT'S FUNDING ENTITLEMENT IS CALCULATED BASED ON THAT ATTENDANCE OF ITS STUDENTS AND A LITTLE BIT OF EXTRA FUNDING FOR SPECIFIC PROGRAMS AND ANY TAX REVENUE THAT IS GENERATED ABOVE THAT AMOUNT GOES BACK TO THE DISTRICT OR GOES BACK TO THE STATE.THEY RECAPTURE ALL THOSE FUNDS, AND THE DISTRICT IS ONLY ALLOWED TO KEEP A CERTAIN PORTION, A PORTION OF THAT. SOMETIMES PEOPLE WILL ASK, WHY CAN'T WE JUST LOWER OUR TAX RATE SO WE'RE NOT COLLECTING MORE THAN WE NEED? AND THE STATE HAS. WHAT WILL HAPPEN IS THE STATE WILL REDUCE THE SIZE OF OUR ENTITLEMENT IF WE WERE TO DO SOMETHING LIKE THAT.
THANK YOU. I'LL ASK ERICA TO COME UP AND TALK ABOUT THE SPECIFIC BUDGETS NOW.
GOOD EVENING EVERYONE. I WILL PRESENT THE BUDGET FOR THE 25-26 SCHOOL YEAR.
LET'S START WITH GENERAL FUND.
THIS IS A COMPARISON OF REVENUE AND EXPENDITURES FOR THE 24-25, AND 23-24 FISCAL YEAR.
THE REVENUE BUDGET FOR 24-25 INCLUDED TAX REVENUE THAT REQUIRED THE VOTERS TO APPROVE AN INCREASED TAX RATE FOR COPPELL ISD, WHICH DID NOT OCCUR. THE 25-26 PROPOSED REVENUE BUDGET INCLUDES TAX REVENUE, ASSUMING THE PASSAGE OF THE INCREASED EXEMPTIONS THAT ARE REQUIRED TO BE APPROVED BY THE VOTERS ON NOVEMBER 4TH, 2025.
85.89% OF COPPELL ISD REVENUE CONSISTS OF PROPERTY TAXES, 9.51% IS PROVIDED BY THE STATE, 0.17% IS FEDERAL FUNDS AND 4.43% IS LOCAL REVENUE.
THE BUDGET FOR INSTRUCTION IS INCREASING, WHILE THE BUDGETS FOR ADMINISTRATIVE AREAS SUCH AS INSTRUCTIONAL LEADERSHIP AND ADMINISTRATION ARE DECREASING. HERE IS A BREAKDOWN OF THE EXPENDITURES BY THE TYPE OF FUNCTION.
PAYROLL IS 72.87% OF ALL BUDGETS, FOLLOWED BY PROFESSIONAL AND CONTRACTED SERVICES, WHICH 10.7% OF THE TOTAL EXPENDITURE IS RECAPTURE. IF WE REMOVED RECAPTURE, PAYROLL MAKES UP 82% OF THE TOTAL DISTRICT'S EXPENDITURE. NOW LET'S TALK A LITTLE BIT ABOUT FOOD SERVICE.
FOOD SERVICE BUDGET. THE FOOD SERVICE SERVICE BUDGET CONSISTS OF TWO FUNDS.
THE COMBINED FOOD SERVICE BUDGET IS PLANNED TO NET RIGHT AT 149,483, WHICH IS AROUND THE SAME FOR THE 24-25 SCHOOL YEAR. YEAH. I'M SORRY. YEAH.
WE'LL MOVE TO DEBT SERVICE. I'LL MOVE TO THE SLIDES WITH THIS ONE.
THE DISTRICT SEIZED AROUND $3 MILLION IN DEBT IN AUGUST 2024, AND EVALUATED THE FEES AND ADDITIONAL DEBT IN EARLY 2025 DUE TO PROPOSED BILLS IN THE 89TH LEGISLATIVE SESSION.
[00:20:04]
THE PROPOSED TAX RATE FOR FISCAL YEAR 25-26 IS .7552 FOR MAINTENANCE AND OPERATION, AND 0.2267 FOR INTEREST IN SINKING, FOR A TOTAL RATE OF 0.9819.THE PROPOSED 25-26 FOR MAINTENANCE AND OPERATION REMAINS THE SAME AS LAST YEAR, WHILE THE 25-26 TAX RATE, WHEN INTEREST IN SINKING IS REDUCED BY 2.07 PENNIES.
IF PASSED IN NOVEMBER 2025, THE HOMESTEAD EXEMPTION WILL INCREASE FROM 100K TO 140K.
THE EXEMPTIONS FOR OVER 65 AND DISABLED WILL GO FROM 10K TO 60K.
CISD TAXPAYERS WILL SAVE $393, AND THE ADDITIONAL TAX SAVING FOR OVER 65 AND DISABLED IS $491.
THIS WILL CONCLUDE THE 25-26 FISCAL YEAR BUDGET.
HAVE ANY QUESTIONS? DO YOU GUYS HAVE ANY QUICK QUESTIONS FOR ERICA.
I KNOW WE ALL KNOW UP HERE, BUT I THINK FOR THE PUBLIC, THAT WOULD BE NICE.
DEFEASING DEBT MEANS THAT YOU'RE BASICALLY REFINANCING IT, AND SO YOU'RE PAYING DOWN SOME OF THE PRINCIPLES SO THAT THE DISTRICT WILL OWE LESS IN INTEREST LATER. AND IT IS COMMON PRACTICE FOR SCHOOL DISTRICTS TO KEEP THEIR TAX RATE RELATIVELY STAGNANT, TO BE ABLE TO GENERATE SOME ADDITIONAL REVENUE SO THAT THEY CAN DO DEFICITS, THAT, THAT THAT ALLOWS SCHOOL DISTRICTS TO PAY DOWN ON PRINCIPAL AND IT'LL, IT REDUCES THE LONG TERM RAMIFICATIONS OF INTEREST PAYMENTS.
HOWEVER, THE STATE LEGISLATURE HAS MADE THAT MORE AND MORE DIFFICULT TO ENTER INTO DEFICITS PROGRAMS. AND SO IF YOU'LL NOTICE THE CALCULATION. WOULD YOU MIND GOING BACK TO THAT SLIDE.
BECAUSE THIS IS, IT'S AN INTERESTING PIECE. GO JUST 3 OR 4 BACK IF YOU DON'T MIND MISS SIRCAR.
RIGHT THERE. SO WHAT YOU'RE LOOKING AT HERE IS YOU'RE ACTUALLY LOOKING AT THERE'S VERY LITTLE DIFFERENCE BETWEEN THE AMOUNT THAT IS ANTICIPATED IN COLLECTIONS AND THE AMOUNT ANTICIPATED IN THE EXPENDITURE.
AND SO THERE WON'T BE THAT CAPACITY TO DO THAT.
BUT IT'S NOW PRETTY MUCH OUT THE WINDOW WITH SOME LEGISLATIVE ACTION.
THE 178,000 DOES ALLOW FOR A LITTLE BIT OF CUSHION IF THE TAX COLLECTION PERCENTAGES MAYBE COME IN LOWER THAN WHAT WE ANTICIPATE, SO. THANK YOU. ANY QUESTIONS FROM THE BOARD? IF NOT, THIS IS A PUBLIC HEARING FOR THE 25, 2025-2026 BUDGET AND TAX RATE. SO IF THERE'S ANYONE HERE TONIGHT, YOU DID NOT HAVE TO SIGN UP AHEAD OF TIME FOR THIS ONE.
IF ANYONE OVER THE MATERIAL YOU'VE HEARD WOULD LIKE TO ADDRESS THE BOARD OR HAVE ANY COMMENTS.
THERE ARE NO, NO ONE THAT THAT IS WANTING TO SPEAK ON THE 2025-2026 BUDGET.
THEN THAT WILL CONCLUDE OUR PUBLIC HEARING. FOR THIS EVENING.
BOARD, WE WILL BE ADJOURNED UNTIL 6:00 AND WE START OUR REGULAR MEETING.
* This transcript was compiled from uncorrected Closed Captioning.