Cypress Fairbanks ISD faces $43M deficit amid rising costs and declining attendance

In a recent board work session held by Cypress-Fairbanks Independent School District (CFISD), officials confronted the pressing financial challenges facing the district, highlighting the impact of state funding formulas and inflation on their budget. The meeting, which took place on February 6, 2025, revealed a stark reality: despite rising operational costs and a decrease in student attendance, the district's funding remains stagnant.

The discussion opened with a focus on the state funding formula, which has not seen an increase in the basic allotment of $6,160 since February 2019. This lack of adjustment, coupled with a staggering 20% inflation rate over the past few years, has placed a significant strain on the district's finances. Officials noted that while school districts can influence funding through attendance, they are largely at the mercy of state legislation, which does not account for inflation.

CFISD has also been proactive in providing tax relief to homeowners through a local optional homestead exemption, which has resulted in a loss of approximately $63 million in general fund revenue. This decision, while beneficial for homeowners, has further complicated the district's financial landscape.

The board highlighted a concerning trend: a 2% decrease in average daily attendance since the pandemic, translating to a loss of about $15 million. This decline is not unique to CFISD but reflects a broader issue affecting school districts across Texas and the nation.

As the district grapples with these financial hurdles, it has formed a budget reduction advisory committee to explore alternative revenue sources and expenditure cuts. The anticipated budget deficit for the upcoming year stands at $43.6 million, even after implementing significant cuts and utilizing a portion of the general fund balance.

In addition to these challenges, CFISD faces rising operational costs associated with staffing new facilities and increased expenditures in special education and safety. The expiration of federal stimulus funding further complicates the situation, leaving the district to absorb costs without the ability to raise prices as businesses do.

The board's discussions underscored the urgency for legislative action to address the funding formula and provide necessary support to public education. As CFISD navigates these financial challenges, the future of its educational programs and services hangs in the balance, prompting a call for community engagement and advocacy for sustainable funding solutions.