Judson ISD hears financial review showing revenue shortfall, agrees to corrective‑action planning ahead of November TRE

At a special meeting of the Judson ISD Board of Trustees, trustees and staff were presented with a financial review showing the district’s projected expenses exceed revenue and that the district has entered a budget “cash burn.” The board directed staff to develop corrective-and-preventative action plans, run a staffing audit, and prepare contingency budgets tied to whether a November tax ratification election (TRE) passes. Monica Ryan, president and trustee for District 7, presided and confirmed a quorum.

The district’s financial presenter, Amber Lassagne, described data from the LBB-directed efficiency audit and district budgets. She told trustees Judson’s general fund revenue per student was about $9,700 while spending per student was roughly $11,063, creating a persistent gap. “In the for-profit world, that’s called a cash burn,” Lassagne said. She and consultant Robert Gibson framed the immediate work as translating existing analyses into actionable CAPAs so the district can close the gap without waiting for deeper paralysis-by-analysis.

Why this matters: trustees were shown that, under current budgets, the district will need either revenue increases or expenditure reductions to avoid falling below state thresholds for cash on hand. Staff said the TRE — a local vote to raise property tax revenue — is a key contingency: if it passes the district narrows the gap; if it fails, the board will need faster, deeper savings.

What the review said Lassagne summarized audited 2023–24 data and the district’s adopted 2024–25 budget: Judson’s revenue per student sits below the state average and below the peer composite used in the efficiency audit, while its per‑student expenditures are higher. That pattern, plus projected amendments for 2024–25, produces what Lassagne and others described as a multi‑year cash drawdown unless actions are taken. She told trustees the district began accessing fund balance in 2022–23 and that 2025–26 is the year when pressure will be most visible in the Texas Education Agency (TEA) first financial indicators.

Lassagne highlighted three TEA-related thresholds trustees should watch: a 75‑day/90‑day cash‑on‑hand metric and a 60‑day level that TEA treats as a more critical warning. She said if the TRE does not pass the district could fall below TEA’s lower thresholds by 2025–26, and that, even if the TRE passes, there will remain a gap the CAPAs must address.

Board directions, timing and next steps Trustees did not take formal votes at the meeting; instead they gave staff direction to: (1) draft a set of CAPAs and a timeline, (2) run a staffing audit (including positions originally funded with one-time federal ESSER funds), and (3) develop revenue-and‑expenditure contingency scenarios for both TRE passage and failure. The board asked staff to return with more-detailed recommendations and estimates of people, time, space and cost tied to each proposed action. Dr. Robert Gibson, serving as facilitator, described the CAPA process as a set of prioritized actions intended to translate existing analysis into implementable changes.

Staff said the staffing audit and an initial CAPA draft could be produced quickly; trustees asked for an initial staffing analysis by late October to inform community messaging and any further public conversations. Trustees agreed to defer any formal public discussion about potential building consolidations until after the TRE results are known, and to sequence engagement so the district can develop options — not a single pre-announced outcome — if additional consolidation or reconfiguration is necessary.

Hiring, ESSER positions and chapter‑21 contract issues Trustees and staff discussed limiting new hires while the district stabilizes staffing-to-enrollment ratios. The board did not impose a blanket hiring freeze; rather, cabinet members were asked to scrutinize open and proposed hires and bring only “essential” requests forward for board approval. Staff agreed to audit roles created or expanded under ESSER and other one-time funding and to recommend sunset or reallocation strategies where appropriate. Trustees also directed staff to review which non‑instructional roles carry chapter‑21 protections and to propose any policy or contractual changes that would preserve legal compliance while preserving needed operational flexibility.

Consolidation and public communication Board members emphasized the need for careful timing and legal caution when talking about school consolidations while the TRE campaign is active. Trustees asked staff to develop multiple options and related analyses (enrollment, facility utilization, program impacts) but agreed the district should present final consolidation options to the community after the TRE outcome is known so as to avoid any appearance of electioneering.

What trustees said Monica Ryan, Board President: presiding over the work and emphasizing the need for clarity and deliberate steps. Amber Lassagne, financial reviewer: presented the efficiency/financial review and warned trustees that “you’re on a cash burn” and that the CAPAs should aim to narrow the gap between revenue and expense. Dr. Robert Gibson, facilitator: urged trustees to use existing analyses and “translate [them] into follow-up action” through a team approach.

Officials’ procedural actions The board convened in closed session early in the meeting pursuant to Texas Government Code §551.071 (consultation with legal counsel) and reconvened in open session at 6:28 p.m.; staff said no action or vote was taken during the closed session. Trustees confirmed they would continue CAPA work with a combined “team of 15” of board and staff leaders and return with prioritized recommendations.

What’s next Staff will provide detailed CAPA drafts, a staffing audit and revenue/expenditure contingency scenarios for trustees to review. Trustees asked those materials to show anticipated resource needs (people, time, space, dollars) and measurable outcomes the district expects from each action. The board signaled it seeks both short‑term steps to stabilize cash flow and longer‑term structural adjustments to align spending with available resources.