The Regular Meeting held on November 12, 2024, focused primarily on a comprehensive review of the district's budget, marking the first update since the budget was adopted in June. The meeting addressed significant changes in revenues and expenditures, particularly in relation to the VADER initiative, which necessitated a higher tax rate and triggered an election.

The budget report revealed a notable decrease of $20.2 million in the general fund revenues. This decline was largely attributed to the removal of $11.2 million in state aid and $9 million in current tax revenue linked to the VADER initiative. Conversely, the district received $200,000 in grant funds from Harris County for a disparity study and over $9,000 in insurance recovery, which partially offset the revenue loss.

On the expenditure side, there was a net decrease of $6.4 million. This included an $8.3 million reduction in district-wide expenditures, primarily due to the cancellation of raises that would have been funded by the VADER initiative. However, there was an increase of nearly $1.5 million for reappropriated prior year encumbrances, which are funds set aside for future payments. Additional adjustments included $200,000 for the Harris County grant and $78,000 for improvements at Decaney High School, funded largely by external partners.

The overall adjustments resulted in a total fund balance of approximately $87.9 million in the general fund. The Child Nutrition Fund remained stable with no changes in revenues but an increase of $1.9 million in appropriations due to reappropriated encumbrances, leading to a projected fund balance of nearly $9.8 million.

In the debt service fund, a bond refunding transaction resulted in a net increase of $392,000, with appropriations rising by over $3 million. This included $2.7 million contributed by the district to facilitate the refunding process. The total fund balance in the debt service fund is now estimated at $130 million.

The special revenue funds experienced a decrease of $8.5 million in budgeted revenues and $8.2 million in appropriations, primarily due to the closure of the T Class grant. The remaining fund balance in special revenue is just under $1.3 million, associated with school activity funds.

Lastly, the capital projects fund saw an increase of $111,000 in interest earnings, with appropriations rising by $17.8 million, reflecting the final amount of authorized bond funds related to technology from the 2022 bond program.

The meeting concluded with a clear understanding of the budget adjustments and their implications for the district's financial health moving forward. Further discussions and follow-up actions are anticipated as the district continues to navigate its fiscal responsibilities.