Waco ISD faces $14.8M deficit amid state funding uncertainties

In a recent Waco Independent School District (WISD) board meeting, the atmosphere was charged with anticipation as board members gathered to discuss the district's financial outlook. The meeting, held on May 15, 2025, revealed a complex picture of budgetary challenges and potential opportunities for the upcoming school year.

Cheryl Davis, the district's financial officer, presented an update on the current year's budget, highlighting a projected deficit of approximately $14.8 million. This figure, while daunting, is an improvement from the previously adopted budget deficit of $8 million, thanks to some unexpected savings and increased student enrollment. The district has seen a rise in Average Daily Attendance (ADA), with an increase of 28 students, which has contributed positively to the financial landscape.

However, the meeting also underscored the ongoing challenges WISD faces, particularly regarding state funding and property values. Davis noted that the district has filed an appeal concerning an error in the property value study, which could impact future revenue. The preliminary taxable property values for the district have risen to $10.2 billion, up from $9.8 billion the previous year, but this increase may lead to a recapture situation where the district would need to return approximately $272,000 to the state.

The discussion also touched on the implications of recent legislative changes, particularly House Bill 2, which proposes significant funding for teacher salaries. The bill includes a $4.2 billion allocation for pay increases, with teachers having three or more years of experience set to receive raises of $2,500 to $5,500. While this funding is welcomed, Davis cautioned that it does not cover the associated costs of benefits, which could add an additional $750,000 burden on the district.

As the meeting progressed, board members expressed concerns about the sustainability of these funding increases, especially given the historical context of inflation and the district's reliance on state funding. The conversation highlighted the delicate balance WISD must maintain between providing competitive salaries to attract and retain quality educators and managing a budget that is already strained.

Looking ahead, the board is tasked with navigating these financial complexities while ensuring that educational standards remain high. The session concluded with a sense of cautious optimism, as members recognized the need for strategic planning and prudent financial management in the face of uncertainty. As the legislative session approaches its conclusion on June 2, the district awaits further clarity on funding and policy changes that will shape its financial future.