Belton ISD faces $11M deficit as budget cuts and funding challenges loom

The Belton Independent School District (ISD) Board Workshop held on January 27, 2024, focused on addressing significant budgetary challenges and planning for the upcoming school year. Key discussions revolved around the district's financial situation, including a projected deficit budget and the implications of recent funding changes.

Superintendent Dr. Ward highlighted the ongoing financial strain, noting that despite a deficit budget, the district managed to offer pay raises. However, the district is facing a $1 million funding gap for armed security across all campuses, a necessity supported by recent legislation but not fully funded. Additionally, a surprising 50% reduction in federal Medicaid reimbursements resulted in a loss of approximately $1.3 million for Belton ISD, further complicating the financial landscape.

To mitigate these challenges, the district has utilized Elementary and Secondary School Emergency Relief (ESSER) funds to maintain lower class sizes, addressing concerns about learning loss and classroom discipline post-pandemic. The district has also implemented budget reductions totaling about $4.9 million, achieved primarily through attrition rather than layoffs, and by reducing campus and departmental budgets by 10-20%.

Despite these reductions, the district had to allocate an additional $2 million for special education staffing due to enrollment needs. The discussions included projections for the 2025-2026 budget, emphasizing the uncertainty surrounding state funding and the potential impact of legislative decisions on the basic allotment, a primary funding mechanism for Texas schools.

The board acknowledged the necessity of budget reductions moving forward, with projections indicating a potential deficit of $11.5 million if no changes are made. However, if the state increases the basic allotment by $500 to $900, the district could see a surplus, allowing for a more stable financial position.

The workshop underscored the importance of strategic financial planning as Belton ISD navigates its budgetary challenges while striving to maintain educational quality and safety for its students. The board will continue to explore options and prepare for the upcoming legislative session, which could significantly influence the district's financial future.