The Corpus Christi ISD board of trustees on Monday adopted a budget for the next school year in which revenues are projected to be less than expenses.
The majority of school district funding comes from local property taxes. The state also pitches in dollars based on a district’s average daily attendance. If a school district’s enrollment or attendance figures drop, so does state funding, even if the drops in students do not result in lessened costs for the district.
CCISD saw a rapid drop in enrollment and average daily attendance due to the pandemic, but enrollment projections are currently “leveling off,” said Karen Griffith, CCISD’s deputy superintendent of business and support services.
The district also passed a deficit budget last year.
The board passed the budget unanimously with little discussion during Monday’s meeting.
What’s in the budget?
District staff is projecting general fund revenues of about $306.7 million, while expenditures are estimated at $332.6 million. That means the budget has a deficit of almost $26 million.
The district is expecting a slight growth in property tax revenues based on a 6% increase in appraised property values, but state and federal funding is expected to decline. Federal grants are expected to drop by more than $3 million from last year, according to district records.
Expenses are also expected to go up in part due to increased property insurance costs.
Griffith said earlier this year that the district has about three years of operating life before it runs out of savings if the district continues to pass deficit budgets.
“Like we did last year, we will look at what we can do to save money as we roll on through the year, and we’re hoping that we’re going to get some good news by the end of the legislative session that might help defray this also,” Griffith said during Monday’s meeting.
Texas legislators plan to spend at least $12.3 billion on new property tax cuts, which would include sending money to school districts so they can lower their tax rates, but lawmakers have not agreed on a plan.
The Legislature approved $1.4 billion in school funding during the regular session this year, but other proposals to boost teacher pay and per-pupil spending failed.
Griffith said the board will vote to amend the budget if new laws change the district’s plans.
Will teachers, staff get raises?
Included in the budget are pay increases and stipends, the latter funded by federal COVID-19 relief funds.
Teachers, nurses and librarians will see a $250 increase for starting salary, bringing the pay up to $52,250.
Those positions will also see step increases of $600 for those with zero to five years of experience and $900 for six or more years of experience.
Counselors will get a raise of 1% of the midpoint of their salary scales for those with zero to five years of experience and 1.5% for six or more years of experience.
Administrators will get a raise of 1% of the midpoint of their salary scales.
Auxiliary staff will see an increase of 50 cents per hour, with a minimum hourly rate increase to $13.
Those pay increases will total $3.4 million and will come out of the general fund.
Federal funds totaling $12.5 million will allow for one-time stipends as follows:
- $500 “welcome back” stipends per employee.
- 1% midpoint retention stipends.
- 3% midpoint one-time pay increases.
- An additional retention stipend to be determined.
What about the tax rate?
The board is set to adopt a tax rate during a meeting in August after the Nueces County Appraisal District certifies appraisal values in July.
Projected revenues were based on the assumption that the tax rate will not increase. The district’s maintenance and operations tax rate — the portion of taxes used for salaries and operating costs — was $0.9311 per $100 of assessed property value for 2022-23.
Next year’s M&O tax rate may be lower, at $0.8652, Griffith said. The interest and sinking tax rate is expected to stay the same, at $0.28.
Staff writer Olivia Garrett contributed to this story.
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