Cedar Hill School District discusses $6M budget deficit solutions and enrollment trends

The Cedar Hill Independent School District (ISD) held a called meeting on February 3, 2025, to discuss critical budget updates and future financial strategies. Interim Chief Financial Officer Amy Drozd presented a comprehensive overview of the district's current financial status, highlighting both challenges and opportunities as the district prepares for the upcoming fiscal year.

Drozd reported a significant decline in student enrollment over the past six years, although the rate of decline has slowed for the 2024-2025 school year. This trend has implications for funding, as the district receives financial support based on student attendance rather than enrollment. Despite the challenges, the district anticipates approximately $3 million more in revenue than initially budgeted, primarily due to better-than-expected enrollment figures and a successful property value audit that yielded an additional $1.1 million in state revenue.

However, the district is facing a projected budget deficit of around $6 million for the current fiscal year. Drozd emphasized the need for budget amendments to cover increased expenditures, particularly in payroll, as the district has not adjusted staffing levels in line with declining enrollment. The interim CFO noted that while the district has made efforts to identify budget reductions, more aggressive measures are necessary to maintain financial stability.

Looking ahead to the 2025-2026 budget, Drozd outlined several priorities aimed at addressing the financial shortfall. These include potential staffing reductions through attrition, consolidating schools, and repurposing facilities to optimize resources. The district is also exploring the possibility of expanding successful programs, such as Montessori education, to attract more students.

The meeting concluded with a commitment from the administrative team to continue monitoring the budget closely and to engage with the board of trustees regularly. The district aims to implement priority initiatives in a timely manner, ensuring that Cedar Hill ISD remains financially viable while providing quality education to its students. The next steps will involve ongoing discussions about budget priorities and potential revenue-generating strategies as the district navigates its financial landscape.