Georgetown ISD has a $3.7mil Budget Shortfall

Reposting message from Superintendent’s Office for Georgetown ISD:

Dear GISD Families,

During Monday’s workshop, we presented recommendations to the Georgetown ISD Board of Trustees to address a projected $3.7 million budget shortfall for next year and achieve a balanced budget. These difficult decisions will be felt districtwide and are necessary to protect the long-term financial health of our district. Balancing the budget helps us consider future compensation increases for teachers and staff, safeguard the district from unforeseen challenges, and preserve the diverse learning opportunities that Georgetown ISD is known for. 

How did we get here?
First, it's essential to understand the role of a school district’s fund balance, which functions like a savings account. School districts receive property tax revenue in December, so from July through November, we rely on our fund balance to meet payroll. If that balance becomes too low, the district would have to take out loans to pay staff. Without targeted action, we could reach that point within two years.

As a property-wealthy district, Georgetown ISD is capped on what it collects from local taxes, and returns millions to the state annually through recapture. As I’ve shared in budget talks, there are only three ways we can raise pay and keep up with inflation: through increased funding from the legislature, by cutting expenses, or taking money from the fund balance.

Over the past few years, we prioritized increased and competitive compensation for staff amid rising costs for utilities, health insurance, and property insurance, all without an increase in state funding since 2019. It’s not sustainable to continue to meet rising costs without an increase in funding. 

What is happening in the Texas Legislature? Will it help us?

Currently, no legislation has been fully passed that would provide increased and sustainable funding for public schools. House Bill 2 passed the House last week, which could bring some relief through an increase in the basic allotment, though it would not address long-term financial needs, and we must move forward with budget decisions as we plan for the upcoming year.

How will Georgetown ISD reduce the budget deficit?

Campus and district leaders have collaborated over the past month to develop reduction proposals; additionally, we considered critical staff input regarding the potential impact of each option.

$1.2 Million in district-level reductions include:

• Six district-level positions      

• Eliminating travel stipends      

• Reducing department budgets       

• Redesigning mental health staffing     

• Funding a portion of the cafeteria staff with Child Nutrition Services (CNS) funds   

• Reducing contract days for LDC/ARD facilitators   

$1.6 Million in campus-level reductions include:

• Reducing 1 administrative assistant at each high school   

• Increasing high school class sizes to 26:1     

• Reducing campus budgets      

• Revising the staffing and delivery of GT services at elementary     

• Reducing LDCs and APs at elementary campuses <750 students

• Reducing elementary paraprofessionals     

• Reducing the number of receptionists at elementary campuses <500 students

• Reducing interventionists       

• Reducing a safety monitor       

Other areas for savings include reductions to the fine arts budget for a savings of more than $40,000; staffing adjustments in athletics and less frequent drug testing, for a combined savings of $130,000; updating course codes for Career and Technical Education programs, which should generate $400,000 in new revenue; and making a change in the service delivery for specified Special Education students, saving $197,826.  All of these efforts result in $3.58 million in savings this year and a combined $7 million in reductions over the past two years.

I am grateful to our Board of Trustees for establishing clear priorities to guide this process, to our staff for their thoughtful and collaborative feedback, and to our community for staying engaged and informed.

While the lack of adequate public school funding presents a significant challenge, I am optimistic. These difficult decisions help ensure a stronger future for our students and staff. We remain committed to providing exceptional learning experiences and competitive compensation for all teachers and staff. 

We will continue to follow legislative bills and ask our legislators to increase funding for our public schools. Added funding could help us secure future pay raises for our team. In the meantime, I know you may have questions about the proposed reductions above, and I encourage you to reach out to us via Let’s Talk. We’ll share your inquiries with the most appropriate staff person for a response. 

We are grateful for your partnership. Thank you for supporting the educators across Georgetown ISD.

Devin Padavil, Ed.D
Georgetown ISD Superintendent