School District budgets for 2025-2026 amid declining enrollment and revenue challenges

In a recent work study session held on May 15, 2025, the Carrollton-Farmers Branch Independent School District (CFBISD) School Board addressed critical financial challenges and strategies for the upcoming 2025-2026 budget year. The meeting highlighted the district's ongoing efforts to maintain fiscal stability amid declining enrollment and anticipated reductions in federal funding.

The discussion began with an overview of the district's Average Daily Attendance (ADA) trends, which have shown a decline. This trend is concerning as ADA is a key factor in determining funding, with the district relying heavily on local property taxes for revenue. Currently, 84% of the district's revenue comes from local sources, while only 14% is supplemented by state funding. The board emphasized the importance of increasing student enrollment and attendance rates to positively influence revenue.

Budget Director Carla Stacney presented an overview of the budget preparation process, outlining strategic goals that include investing in infrastructure and ensuring the safety of students and staff. However, she noted a significant challenge: a projected decrease in federal revenues due to cuts in the School Health Related Services (SHARS) program. This reduction adds pressure to an already tight budget, where approximately 80% of expenditures are allocated to staff salaries and benefits.

To address the budget shortfall, the district plans to implement a 10% budget cut across departments over the next two years, with an immediate 5% reduction for the 2025-2026 school year. This decision is expected to save around $6.4 million, a crucial step toward balancing the budget. The board acknowledged the difficulty of this process and expressed gratitude for the cooperation of department leaders in making these adjustments.

The meeting also touched on the district's commitment to maintaining a healthy fund balance, targeting four months of operating expenditures. The board is optimistic about meeting budgetary goals, thanks to ongoing collaboration with campus leaders and a focus on strategic spending.

As the district navigates these financial challenges, the board remains focused on ensuring that educational quality and safety are not compromised. The next steps will involve closely monitoring revenue and expenditures as the fiscal year progresses, with a commitment to transparency and accountability in financial stewardship.