[00:00:01]
PRESENTATION AND THE QUESTIONS ASKED. THANK YOU. THANK YOU SERGEANT. THE TIME IS 5:01 P.M.
[1. Call to Order]
AND THIS MEETING IS HEREBY CALLED TO ORDER. WE HAVE THE PRESENCE OF A QUORUM ATTENDING IN PERSON, AND NOTICE OF THIS MEETING HAS BEEN POSTED ONLINE AND AT THE FORT BEND ISD ADMINISTRATION BUILDING FOR AT LEAST 72 HOURS. BEFORE WE GET STARTED THIS EVENING, I JUST[2. 2025-26 Budget and Proposed Tax Rate]
WANT TO SAY GO, TIGERS! AND NOW WE WILL HAVE OUR 20 2526 BUDGET AND PROPOSED TAX RATE. DOCTOR SMITH. YES, MA'AM. THANK YOU, MADAM PRESIDENT. GOOD EVENING, TRUSTEES AND THOSE THAT ARE IN ATTENDANCE, THE PUBLIC. I HOPE EVERYBODY'S DOING WELL. MR. BRIAN GWIN, OUR CFO, IS GOING TO GET US STARTED. HE'S GOING TO BE PRESENTING THE PROPOSED 2526 SCHOOL DISTRICT BUDGET. THAT WILL INCLUDE OUR DEBT SERVICE, AS WELL AS OUR PROPOSED MMO. AND THEN, OF COURSE, WE'LL BE PREPARED TO ANSWER ANY QUESTIONS THAT THE TRUSTEES MAY HAVE. MR. WILLIAMS. GOOD EVENING, MADAM PRESIDENT. MEMBERS OF THE BOARD AND DOCTOR SMITH. THIS EVENING WE ARE CONDUCTING THE REQUIRED HEARING ON THE PROPOSED BUDGET AND TAX RATE. THE INFORMATION WE ARE ABOUT TO PRESENT IS A CULMINATION OF WORK THAT STARTED IN JANUARY AND HAS PROGRESSED THROUGH THROUGHOUT THE YEAR, WITH INPUT FROM THE BOARD. THE BUDGET WE'RE REVIEWING INCORPORATES LEGISLATIVE CHANGES ADOPTED DURING THE 89TH LEGISLATIVE SESSION, AND THAT INCLUDES THE RETENTION ALLOTMENTS FOR STAFF. IT ALSO INCLUDES A DIFFERENT DISTRICT COMPENSATION PACKAGE TO ENSURE ALL EMPLOYEES RECEIVE RECOGNITION FOR THE WORK THAT THEY DO FOR OUR STUDENTS EVERY DAY. THERE ARE STATUTORY REQUIREMENTS ASSOCIATED WITH ADOPTING THE BUDGET, AND THOSE REQUIREMENTS ARE LISTED HERE. THEY HAVE ALL BEEN MET AND THAT INCLUDES PUBLISHING A NOTICE OF THIS MEETING IN A LOCAL PAPER, THREE FREE PAPERS TO BE EXACT, AND THAT INFORMATION HAS ALSO BEEN PRESENTED ON THE DISTRICT'S WEBSITE AS REQUIRED BY STATUTE. THE GENERAL OPERATING BUDGET FOR THE DISTRICT FOR 2526 IS PROPOSED AT. $901,639,247. THAT BREAKS DOWN TO EXPENDITURES OF $11,275 PER STUDENT, AND THAT IS AN INCREASE FROM THE PRIOR YEAR. AND THAT'S DRIVEN PRIMARILY BY THE ADDITIONAL STATE REVENUE WE'RE RECEIVING TO DO RAISES, AS WELL AS THE ONE TIME PROPOSED DISTRICT COMPENSATION PACKAGE. THE REVENUES ARE BUDGETED BASED ON ENROLLMENT OF 79,970 STUDENTS, WITH AN ATTENDANCE RATE OF 95%. THE TOTAL TAX RATE TO SUPPORT THE PROPOSED BUDGET FOR THE GENERAL FUND DEBT SERVICE FUNDS IS $1 AND 5.31 CENTS. THAT INCLUDES 78.31 CENTS FOR THE MAINTENANCE AND OPERATION FUND, OR THE GENERAL FUND, AND SEVEN DISASTER PENNIES AND $0.27 FOR OUR DEBT SERVICE FUND. THOSE DISASTER PENNIES, IF APPROVED, WILL ONLY BE IN EFFECT FOR ONE YEAR AND WOULD EXPIRE AT THE END OF THAT TAX YEAR. THE BOARD IS REQUIRED TO ADOPT BUDGETS FOR THE GENERAL DEBT SERVICE AND CHILD NUTRITION FUNDS, AND WILL REVIEW EACH OF THOSE THIS EVENING. THE BUDGET FOR THE GENERAL FUND IS BROKEN DOWN BY MAJOR FUNCTION TO PROVIDE INSIGHT INTO HOW THE FUNDS WILL BE EXPENDED. THE INSTRUCTIONAL SERVICES CATEGORY MAKES UP 63% OF THE TOTAL BUDGET, AND THIS IS THE FUNCTION WHERE OUR CORE BUSINESS OCCURS.AND SO THIS INCLUDES THE TEACHING STAFF AND INSTRUCTIONAL MATERIALS FOR OUR STUDENTS. THAT IS PART OF THE BUDGET. THE INSTRUCTIONAL LEADERSHIP FUNCTION MAKES UP 8% OF THE TOTAL BUDGET. AND THAT INCLUDES CAMPUS AND NON CAMPUS BASED STAFF THAT ARE RESPONSIBLE FOR MANAGING THE SCHOOLS, AS WELL AS DEVELOPING AND IMPLEMENTING ACADEMIC PROGRAMING IN THE DISTRICT. SO THE PRINCIPALS, AS WELL AS THE TEACHING AND LEARNING STAFF THAT ASSISTS WITH CURRICULUM DEVELOPMENT. STUDENT SUPPORT SERVICES MAKES UP 12% OF THE BUDGET. THIS FUNCTION IS WHERE WE ENSURE THE MENTAL AND PHYSICAL WELL-BEING OF OUR STUDENTS, AS WELL AS TRANSPORTATION, ATHLETICS, FINE ARTS, AND COUNSELING. THE ADMINISTRATIVE SUPPORT PORTION OF THE BUDGET MAKES UP 2% OF THE OVERALL BUDGET, AND THIS IS WHERE WE MAKE SURE THAT THE BILLS ARE PAID, THAT WE RECRUIT AND HIRE HIGH QUALITY STAFF AND ENSURE WE'RE COMPLIANT WITH ALL STATE AND LOCAL STATUTES, FEDERAL AS WELL. NON STUDENT SUPPORT SERVICES MAKES UP 13% OF THE TOTAL BUDGET, AND THIS IS PROBABLY THE MOST POORLY NAMED FUNCTION THAT EXISTS IN THE HISTORY OF HUMANITY. AND THIS IS WHERE WE ENSURE THAT OUR STUDENTS ARE WARM, SAFE AND DRY.
AND SO THIS INCLUDES OUR TECHNOLOGY DEPARTMENT, FACILITIES MAINTENANCE AND OPERATION AND THE POLICE DEPARTMENT. AND AGAIN, IT STAFF THAT MAKE SURE THAT THE BUILDINGS ARE FUNCTIONAL AS WELL AS THE TECHNOLOGY IS WORKING. AND THEN FINALLY, OTHER SERVICES MAKES UP 2% OF THE TOTAL BUDGET. THIS INCLUDES EXPENDITURES THAT ARE NOT CATEGORIZED ELSEWHERE, SUCH AS THE PAYMENTS TO THE CENTRAL APPRAISAL DISTRICT FOR PROPERTY VALUE ASSESSMENTS, AMORTIZATION OF COPIER LEASES AND SOFTWARE LICENSES, AND THEN COLLABORATIVE COMMUNITIES IS ALSO CONSIDERED WITHIN THIS FUNCTION. THE 2025 PROPOSED BUDGET INCLUDES REVENUES OF
[00:05:05]
$906.6 MILLION. BASED ON THE EXPECTED ENROLLMENT AND ATTENDANCE WE REVIEWED EARLIER, AND THE SEVEN DISASTER PENNIES. THE EXPENDITURES ARE PROPOSED AT $901.6 MILLION, AND THOSE EXPENDITURES INCLUDE THE RETENTION ALLOTMENTS THAT ARE APPROVED BY THE STATE AS PART OF HOUSE BILL TWO. HOWEVER, NOT ALL EMPLOYEES WILL BE ELIGIBLE TO RECEIVE THOSE ALLOTMENTS. AND SO BECAUSE THE ALLOTMENTS CAN ALSO VARY SIGNIFICANTLY BETWEEN TEACHERS, RAISES ARE BEING RECOMMENDED. AND WE DON'T HAVE I SHOULD ADD, WE DON'T HAVE DISCRETION LOCALLY TO DETERMINE WHO QUALIFIES FOR THOSE ALLOTMENTS OR HOW MUCH THEY ARE. AND SO BECAUSE OF THAT, OF THOSE LIMITATIONS ON THE STATE RETENTION ALLOTMENT, STAFF HAS DEVELOPED THE IT'S A WIN TO WORK IN FORT BEND PROPOSAL THAT'S INCLUDED IN THE BUDGET. AND AGAIN, THAT ENSURES THAT ALL EMPLOYEES RECEIVE SOMETHING OUTSIDE OF WHAT THE STATE RETENTION ALLOTMENTS ARE IF THEY ARE NOT ELIGIBLE FOR THOSE. AFTER FACTORING IN A CONTRIBUTION OF $2.5 MILLION FROM EXTENDED LEARNING IN OUR ENTERPRISE FUNDS, THE BUDGET WILL END WITH A SURPLUS OF $7.5 MILLION FOR THE UPCOMING YEAR. THE PROPOSED BUDGET HAS AN ENDING FUND BALANCE OF $206.5 MILLION, AND THAT MEETS THE 90 DAY OPERATING RESERVE REQUIREMENT THAT IS ESTABLISHED BY POLICY BOARD POLICY. THE CHILD NUTRITION FUND AND DEBT SERVICE FUNDS MUST ALSO BE ADOPTED BY THE BOARD. FOR THE 2526 SCHOOL YEAR, THERE ARE NO CHANGES TO MEAL PRICES FOR STUDENTS AND THE CHILD NUTRITION FUND. THE EXPENDITURE BUDGETS INCLUDES THE THANK YOU OR THE ONE TIME SUPPLEMENTS FOR CHILD NUTRITION STAFF, AS WELL AS THE FULL INDIRECT COSTS PAID TO THE GENERAL FUND THAT WAS RECOMMENDED AS PART OF THE GIBSON AUDIT. REVENUES IN THE FUND ARE EXPECTED TO BE $45.1 MILLION AND EXPENDITURES AT $49.9 MILLION. AND ALTHOUGH THE FUND DOES SHOW A DRAWDOWN OF FUND BALANCE IN BOTH THE CURRENT YEAR AND THE AND IN THE PROPOSED BUDGET, THAT IS A PLANNED DRAWDOWN OF THE FUND BALANCE. THE DISTRICT HAS A SPEND DOWN PLAN IN PLACE THAT WAS REQUIRED BY THE U.S. DEPARTMENT OF AGRICULTURE BECAUSE THE FUND BALANCE EXCEEDED 90 DAYS, AND THE PLAN INCLUDES THE PURCHASE OF SMALL KITCHEN EQUIPMENT AT CAMPUSES ACROSS THE DISTRICT, AND THERE ARE EXPENDITURES BEING CARRIED OVER INTO THE 2526 BUDGET THAT WERE NOT WILL NOT BE COMPLETED BEFORE THE END OF THIS FISCAL YEAR, AND THEN THE FUND IS EXPECTED TO END THE YEAR WITH A $13.5 MILLION FUND BALANCE. AND THIS FUND, UNLIKE THE GENERAL FUND, DOES NOT HAVE A MINIMUM FUND BALANCE REQUIREMENT. THE DEBT SERVICE FUND IS SUPPORTED BY THE INCOME AND SINKING TAX RATE, AND THERE IS NO CHANGE TO THE INS RATE FOR 2526, AND IT WILL REMAIN AT $0.27. TOTAL REVENUES ARE BUDGETED AT $183.1 MILLION, AND EXPENDITURES AT $185.8 MILLION. AND AS A REMINDER, THERE ARE NO PERSONNEL EXPENDITURES BUDGETED IN THIS FUND. ALL EXPENDITURES ARE TO PAY ON THE DISTRICT'S OUTSTANDING PRINCIPAL AND INTEREST ON BONDS THAT HAVE BEEN ISSUED BY THE DISTRICT. THE ENDING FUND BALANCE WILL BE $162.4 MILLION. BUT AS A REMINDER, THE DISTRICT MAKES DEBT PAYMENTS IN AUGUST OF EACH YEAR, AND SO THE DEBT PAYMENT MADE IN AUGUST OF 2026, IS ESTIMATED AT 132.6, $113.6 MILLION. ONCE THAT PAYMENT IS MADE, OUR ENDING BALANCE WOULD BE $49.3 MILLION, WHICH IS AN INCREASE OVER THE CURRENT BALANCE OF $40.9 MILLION. AND AGAIN, AS WITH THE CHILD NUTRITION FUND, THIS FUND DOES NOT HAVE A MINIMUM FUND BALANCE. THE FINAL ITEM THAT WE'LL TALK THROUGH THIS EVENING IS THE IMPACT ON THE TAX BILL. BASED ON THE MAINTENANCE AND OPERATIONS TAX RATE OF 78.31 CENTS AND THE GENERAL FUND AND THE 27 CENT TAX RATE IN THE DEBT SERVICE FUND, THE TOTAL PROPOSED TAX RATE FOR THE DISTRICT IS $1 AND 5.31 CENTS. THIS RATE INCLUDES SEVEN DISASTER PENNIES THAT FUND THE WIND TO WORK IN FORT BEND COMPENSATION PACKAGE, AND THE LEGISLATURE HAS ALSO PASSED A $40,000 INCREASE TO THE HOMESTEAD EXEMPTION, INCREASING IT TO $140,000. WHEN THE INCREASED HOMESTEAD EXEMPTION IS FACTORED INTO THE EQUATION, ALONG WITH THE AVERAGE HOME VALUE IN THE DISTRICT OF $424,910, THE TAX BILL FOR THE YEAR WILL BE RIGHT AT $3,000, AND THAT AMOUNT IS $194 LESS THAN THE PRIOR TAX BILL. AND AGAIN, THAT REDUCTION AS A RESULT OF THE INCREASE TO THE HOMESTEAD EXEMPTION, THAT CONCLUDES THE PRESENTATION. AND, MADAM PRESIDENT, I'LL TURN IT BACK OVER TO YOU TO ANSWER ANY QUESTION THE BOARD HAS, AS WELL AS TO CONDUCT THE PUBLIC HEARING. THANK YOU, MR. GWEN, FOR THE PRESENTATION. DO WE HAVE QUESTIONS OR COMMENTS BY THE TRUSTEES? JUST A REMINDER THAT WE WILL BE GOING OVER THE BUDGET AND COMPENSATION STUFF DURING THE REGULAR MEETING. SO BUT IF YOU HAVE QUESTIONS OR COMMENTS WE CAN TAKE THOSE NOW. ALL RIGHT. HEARING NONE I'M GOING TO OPEN IT UP FOR PUBLIC COMMENT. DO WE THAT'S RELATED SPECIFICALLY TO THIS HEARING. DO[00:10:05]
WE HAVE ANYONE WHO WANTS TO MAKE PUBLIC COMMENT AT THIS TIME? ALL RIGHT. THANK YOU. MR. GWEN, MAY I HAVE A MOTION TO ADJOURN? I MOVE TO ADJOURN. WE ARE ADJOURNED. THE TIME IS 5:11 P.M.WE'LL BE BACK. IT IS A
* This transcript was compiled from uncorrected Closed Captioning.