Clear Creek ISD board adopts $429.3 million general fund budget, flags $12.5M shortfall and proposed 96.9¢ tax rate

The Clear Creek Independent School District Board of Trustees on Aug. 25 approved the district’s fiscal year 2025–26 budgets — a $429,300,000 general fund spending plan, a $109,950,000 interest-and-sinking budget and a $20,226,000 Child Nutrition Fund — while acknowledging a projected $12.5 million general fund shortfall and proposing a 96.9¢ tax rate.

The board adopted the budgets after a public hearing on the proposals and a presentation by district budget staff. The recommended tax rate the board will consider for final adoption at its September meeting is 96.9¢ per $100 of taxable value, comprised of 69.9¢ for maintenance and operations and 27¢ for debt service.

Why it matters: The budgets underpin school operations, staff pay and debt service for the coming year. Trustees and staff said the district faces an unusual mix of pressures — lower enrollment and attendance than projected, new state-directed funding formulas including a teacher retention allotment, and inflation-driven increases in maintenance and transportation costs — that leave the district dependent on reserves unless revenue or enrollment improves.

Budget details and assumptions Miss Benzai, the district presenter during the hearing, told trustees the general fund budget funds “our general operations” and listed key numbers: general fund expenditures of $429,300,000; interest and sinking of $109,950,000; and a Child Nutrition Fund budget of $20,226,000. The budget incorporates a projected average daily attendance (ADA) built on a demographer’s estimate that enrollment would fall to 39,376 and assumes a 95% attendance rate. The district reported an enrollment of 38,642 as of the prior Friday and an ADA of 97.37 during the first week of school.

Benzai said the budget includes a 3% compensation increase for staff and the state-provided teacher retention allotment, which provides $5,000 for teachers with five or more years of experience and $2,500 for teachers with three to four years of experience. She also said the district is retaining a 5% local homestead tax exemption.

State policy and local revenue effects Benzai explained the state’s increase in the local homestead exemption (from $100,000 to $140,000) shifted some tax burden to the state, reducing local tax revenue: where local revenue made up about 55% of the budget last year, it will make up roughly 49.82% in the proposed budget. She said the State’s maximum compressed rate for the general fund remained 61.9¢ this year.

Deficits, reserves and debt service The presentation showed a projected general fund deficit of $12,500,000. The debt service fund is projected to show an $11,500,000 deficit in the coming year, which Benzai said will be covered in part by the fund’s current balance of about $44,000,000; she projected the debt-service picture would improve in roughly four years without raising the tax rate. Benzai said the district plans to avoid tapping capital or contingency reserves beyond board policy targets and to maintain an unassigned general fund balance equivalent to at least two months of operating expenses (the district reported about 2.7 months currently).

Board discussion and public input Trustees asked about the budgeting timeline, the legislative changes that affected the budget and the drivers of the projected deficit. Board members thanked staff for their fiscal discipline while emphasizing the challenge of state funding that trustees said has not kept pace with inflation and district needs. Trustee Sanchez moved to approve the superintendent’s recommendation to adopt the general fund, debt service and child nutrition budgets by function as presented; the motion passed on a voice/hand vote with no opposition.

Staff noted that the budget was built using several assumptions that will be monitored during the year — certified property values from counties, final enrollment and attendance figures, and state funding model clarifications — and that some of those assumptions will not be final until during or after the next school year. Benzai said the district will pursue staffing studies and other cost reviews in the fall to narrow the projected deficit.

What the board approved and next steps Formally, the trustees approved the fiscal year 2025–26 general fund, debt service and child nutrition budgets by function as presented and will take up the proposed tax rate at the September meeting. Staff will continue to report updated enrollment, certified property valuations and state funding clarifications to the board and pursue internal reviews to reduce the projected shortfall.

Notes and direct quotes “65¢ of every tax dollar goes straight into the classroom,” Benzai said when describing instructional spending. She also said staff had incorporated the teacher retention allotment and a 3% compensation increase into the budget. Trustee discussion emphasized that staffing comprises roughly 87% of total expenditures and that the district will continue to monitor staffing ratios and enrollment closely.

Ending note The board adopted the budgets at the Aug. 25 meeting after the public hearing; the proposed tax rate and final budget adoption will be considered at the board’s September meeting, at which certified property values and additional funding-model details may be available.