Clear Creek ISD presents proposed 2025–26 budget showing $12.5 million general‑fund shortfall; public hearing set Aug. 25

The Clear Creek Independent School District Board of Trustees heard a presentation on the proposed 2025–26 budgets for the General Fund, Debt Service Fund and Child Nutrition Fund and approved publication of the notice for a public hearing on the budget and proposed tax rate.

Finance presenter Ms. Benzai reviewed the assumptions behind the proposal and the district’s timelines for adoption. “Back on July 14, I presented a General Fund budget with a $13,500,000 deficit,” she said, then updated trustees: “Since that time, we’ve received notice from TEA that those [title] funds would be released … and so now the estimated budget deficit that we’re looking at is $12,500,000.”

The nut graf: the proposed budget holds the district’s tax rate unchanged from 2024, with a maintenance and operations rate of 69.9¢ per $100 of assessed value (including the district’s eight “golden pennies”) and a 27¢ debt service component. The district will hold a public hearing on the proposed budget and tax rate on Aug. 25 at 6 p.m., and the board will vote on the tax rate at the September meeting after receiving the certified tax roll.

Most important facts: Ms. Benzai said average daily attendance (ADA) is estimated at 36,450 for 2025–26, down from about 36,764 in 2024–25, based on demographer projections and an adjustment for full‑day early childhood special education funding. She said the district is estimating a 3% decline in taxable value, primarily because the state homestead exemption rose from $100,000 to $140,000; that change lowers the district’s taxable base and is reflected in the revenue projections.

On tax and debt specifics, the presentation noted the TEA‑issued maximum compressed rate of 61.9¢ and that the board’s approved eight pennies bring maintenance and operations to 69.9¢; debt service is funded by 27¢. The debt service fund has a reported balance of approximately $43.9 million, Ms. Benzai said, and the district currently has roughly $1.1 billion in principal outstanding on its bonds. She told trustees the state’s “hold harmless” debt‑service funding (identified in the debt service fund’s state sources) will partially offset lost tax base caused by successive homestead exemption increases.

Discussion and next steps: Trustees asked questions and staff said they plan to submit the required notice for publication in the Galveston Daily News by the end of the week. Ms. Benzai said she has not yet included any transfer from capital and contingency funds to the General Fund; the district intends to reserve capital/contingency funds and consider transfers only after monitoring revenue and expenditures during the year. She warned that projected deficits could grow in fiscal 2027 if enrollment continues to decline and said the district will develop proposed reductions in the fall to minimize that deficit.

The Child Nutrition Fund was presented as balanced; staff reported an anticipated $1.3 million fund balance and noted federal and fee revenue sources for that fund. Regarding the debt service fund, Ms. Benzai and advisers have modeled a multi‑year projection that anticipates drawing down the fund balance modestly for the next few years before recovering under current assumptions and without a new bond election.

Ending: The board approved the action to publish the required notice and moved the budget and tax‑rate schedule forward for the public hearing; trustees were reminded the formal tax‑rate vote will occur in September when TEA provides the certified appraisal roll.