Despite an anticipated $4.3 million budget deficit for the upcoming school year, teachers and staff in Montgomery ISD will get a pay boost as part of the district’s $93 million budget.
The budget includes a $650 raise for teachers and a 1% salary increase to all other employees from the midpoint of their position pay grade, according to a release from the district.
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“I acknowledge that this compensation increase is not as significant as our employees were hoping,” Superintendent Mark Ruffin in a written statement. “I do hope it is understood that in the face of a deficit budget, our board made the decision to continue to support our people. But at some point, something has to give.”
The $4.3 million budget shortfall is expected to be paid through the district’s reserves. Board members for the 10,000-student district approved the budget during a June meeting.
Juggling budget cuts
Montgomery ISD is one of many Texas districts that are seeing budget shortfalls for the upcoming school year, forcing some to make “jaw-dropping” cuts.
Many districts have pointed the finger at Gov. Greg Abbott after lawmakers failed pass an education bill that would have given more funding to districts during the 88th legislative session.
Ruffin links Montgomery ISDs financial woes to “inflation, decreases in federal funding through Medicaid reimbursements, a stagnant level of funding provided by the state, and recapture payments we have been forced to send back to the state.”
The basic allotment, the amount of money the state provides per student, has not increased since 2019, while inflation has risen 22% during that same time period, the district’s release states.
“We have met with our local representatives and legislators about the critical juncture ahead for public education funding heading into the next legislative session,” Ruffin said. “I am thankful that all remain committed to collaboratively working with us to address some of these critical challenges.”
The district’s budget shortfall was determined by several factors — an existing $2.1 million structural deficit from the 2022-23 school year, anticipated increases in expenditures due to the opening of Creekside Elementary School, increases to special education populations requiring additional staff and a $1.3 million reduction in revenue due to the statewide reduction in Medicaid reimbursements.
“Adopting a deficit budget reinforces our commitment to transparency,” Chief Financial Officer Ben Davidson said in a written statement. “It also ensures that from day 1 of our fiscal year, we are extremely cognizant and vigilant about our operating expenses and budgetary decisions.”
Boosting student enrollment
As a way to generate enrollment-based revenue from the state, the district announced earlier this month that some campuses would have limited open enrollment for the 2024-25 school year, with a first-come, first-served basis.
“There is only so much of our funding situation that we can control,” Davidson said. “The major driver of our state aid is student enrollment.”
Davidson said that the district had anticipated financial challenges for the upcoming school year.
“We have been transparent with our staff, asking every campus and every department to carefully evaluate their spending as we prepared for the new school year,” he said. ” We have worked to renegotiate contracts in our favor and create operational efficiencies across the board.”
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As a way to reduce the budget allotted for substitutes, central office administrators with teaching certifications will be required to fill that role once a month.
“Because of our past fiscal responsibility, we have been able to absorb these shortfalls without allowing it to take away from the educational experience for our students, ultimately avoiding reductions in force, cutting important programs, or limiting our course offerings,” Ruffin said. “However, if something does not change, there are extremely difficult decisions that we will be forced to explore and consider.”
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