CFBISD projects a narrower deficit, taps reserves and approves 2025'26 compensation plan

Carrollton-Farmers Branch ISD Chief Financial Officer Carla Settle told the board on Aug. 7 that a combination of property-tax refunds tied to homestead exemption increases, increased recapture (local tax redistribution), and lower-than-expected investment earnings reduced projected revenue for fiscal 2024'25. The district has reserves set aside for these scenarios and administrators recommended a measured approach to close the gap over the next two years. Settle said the district has approximately $27 million in a state-revenue stabilization reserve created in 2020 to buffer revenue volatility; she recommended a board resolution on Aug. 21 to release part of that fund to manage shortfalls. "In order to release these reserves, a resolution will be put before the board for consideration at the August 21 board meeting," she told trustees. Settle and superintendent Eldridge described several one-time and structural steps the district has taken: hiring freezes earlier in the year, reclassifying some capital expenditures to construction fund interest-eligible accounts, and reductions in position counts through recent consolidations. Settle said the district reduced its projected deficit from about $19 million to about $14 million through those steps. Using state legislative funding on teacher pay (House Bill 2) and a TASB market study, administration recommended and the board approved a compensation package that includes: - district implementation of the state-provided retention bonuses (approx. $2,500 for teachers with 3'4 years and $5,000 for teachers with 5+ years when applicable); - a $12.50 daily increase for teachers in years 1 and 2 (recommendation presented by TASB analysis), - a 2% midpoint raise for non-teaching staff (midpoint-based adjustments to reduce internal inequities), and - a $25 monthly increase in the district health-insurance contribution. Board action: Trustees voted to approve all matters related to the 2025'26 compensation plan; the motion passed with five votes in favor and one abstention (Trustee Paul Gilmore abstained due to a family employment conflict), the board secretary recorded. Why it matters: Settle emphasized that Texas's funding formula and local property-value changes have made local tax effort more important to district revenue. She said recapture (the state's mechanism to redistribute local property wealth) and a recent homestead-exemption increase materially affected projected local revenue and that the district will continue to refine conservative revenue assumptions in future budgets. Next steps: The board will consider a resolution on reserves and adopt a final budget and tax rate on Aug. 21. Administration said it will continue 6-week fiscal reporting to the board and pursue a two-year plan to balance the budget without compromising student achievement.