District financial update reveals $19M revenue shortfall and potential salary impacts

Financial stability took center stage at the Carrollton-Farmers Branch ISD School Board meeting on June 5, 2025, as district officials outlined the challenges and strategies for the upcoming fiscal year. The district is grappling with a projected $19 million revenue shortfall, prompting discussions on salary raises and budget amendments.

During the meeting, the district's financial officer presented a detailed overview of the current budget situation, emphasizing the need to pause any salary increase recommendations due to uncertainties stemming from recent legislative changes in Austin. The new law, HB2, signed by the governor, is expected to provide an additional $12 million for maintenance and operations, but it comes with strings attached, including a $6.6 million obligation for compensation increases for teachers and select non-teaching staff.

The financial officer highlighted that while expenditures are trending predictably, revenue has taken significant hits, particularly from local tax adjustments and federal audits affecting past grant funds. The district is also preparing for potential budget amendments in August to address any necessary adjustments related to bond sales or early defeasance of bonds.

In response to board member inquiries, it was clarified that the non-teaching staff eligible for compensation increases under HB2 includes nurses, counselors, custodians, and bus drivers, explicitly excluding central and campus administration roles.

As the district navigates these financial hurdles, officials remain committed to maintaining competitive staffing levels and investing in capital assets while ensuring long-term financial stability. The board is set to continue discussions on budget strategies and the implications of legislative changes in the coming months.