CY-FAIR, Texas — Cy-Fair ISD officials announced plans to cut 618 positions for the next school year due to a projected budget shortfall for the 2024-25 fiscal year.
Superintendent Doug Killian stated that while approximately 4% of staff roles will be eliminated, displaced employees will have the chance to transition into vacant positions elsewhere, prioritizing open roles for teachers and classroom support paraprofessionals.
“All of our staff members are very important to us, and all the positions serve a very important and crucial need in our school district,” Killian said at the May 6 board meeting. “But with that, we still have to make cuts because we’re $138 million shy of a balanced budget, and we don’t have enough fund balance to be able to make it through next year by just simply not doing anything.”
Despite identifying $58 million in budget cuts, Chief Financial Officer Karen Smith noted that the district will still need to use reserves to cover a remaining $77.5 million gap.
CFISD officials anticipated this shortfall, as pandemic-era federal stimulus funding will run out by the end of June, and the 88th Texas Legislature did not increase public school funding despite the district’s advocacy efforts.
After taking office earlier this year, Killian posted a community survey on the district’s website seeking cost-saving and revenue-generating ideas. The budget reduction advisory committee recommended $45.5 million in cuts in April. However, this fell short of the $68 million goal, leading to the decision to eliminate 50 librarian positions. Instead of having 92 campus librarians, 42 district librarians will oversee multiple campuses in 2024-25.
“(Staff members) do a lot with a little, and we’re asking them (to) do a lot more with a lot less. I understand that may mean that we need to pitch in more at the central office, and we will do that going forward,” Killian said.
The board is also considering cutting bus routes to save $4.72 million in transportation costs. Proposed cuts include:
– Not serving elementary students within 1 mile of campus or middle/high school students within 2 miles, except on hazardous routes.
– Eliminating late bus runs.
– Eliminating service to alternative learning centers.
Despite the reductions, the administration proposed a 2% raise for teachers, paraprofessionals, and hourly staff, and a 1% raise for the administration. To compete with neighboring districts, CFISD will also raise the starting teacher salary from $62,000 to $63,000. These increases will cost $17 million.
Paraprofessional Ondrea Love expressed concerns about the proposed raises, noting that they barely cover the cost of inflation and rising insurance costs.
Several factors have contributed to the district’s financial challenges, including:
– A 19% increase in general inflation since 2019-20 with no state funding increases.
– A 1.94% decrease in student attendance, resulting in a $15 million annual revenue loss.
– Increased spending on staffing, salary increases, and special education, bilingual education, and security expenses.
– The expiration of $291.3 million in federal stimulus funding.
The Texas Legislature determines school district funding, factoring in local property tax revenue. CFISD has offered a local optional homestead exemption since 1983, saving the average homeowner $757 annually but costing the district $63 million in lost revenue.
Killian suggested conducting an efficiency audit to identify long-term solutions. He is hopeful that eliminated positions can be restored as additional revenue becomes available, but more cuts may be necessary.
District officials and local legislators are advocating for up to 50% of the lost homestead exemption funding from the Texas Education Agency’s surplus by August. They will also push for a bill to remove the homestead exemption penalty in the next legislative session.
The district might hold a voter-approved tax rate election in November to generate $109 million in additional taxpayer revenue if approved.
“It’s not something that people want to do; it’s not something that’s attractive to a school board to go out there and call for an election and ask for the local taxpayer to take on more burden, and so we are tightening our belt,” Killian said.
The board is expected to adopt the budget at the June 17 meeting.
