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Denton ISD projects lower fund balance, plans course corrections as enrollment and attendance shift
Summary
District staff reviewed 10-year enrollment and attendance trends, rising pre-K enrollment, and fund-balance projections that fall below board targets; trustees discussed state funding, basic allotment and the implications for next year’s budget.
DENTON — Denton ISD staff on Feb. 11 presented a 10-year enrollment and attendance review and a multi-year fund-balance forecast that shows the district dipping below board targets and planning reductions to restore reserves.
The presentation, led in district meeting remarks by a staff presenter identified as Jennifer Stewart, said total district enrollment and average daily attendance tracked closely from 2014–15 through 2019–20, then diverged during and after the pandemic years. Stewart said the district is using the 2024–25 budgeted attendance as the planning baseline for next year because current-year estimates are aligned with the budgeted figure.
The report highlighted a steady rise in prekindergarten enrollment, from 943 students in 2014–15 to 1,506 projected in 2024–25. Stewart told trustees the district is funded for half-day pre-K only, meaning the district receives funding for roughly 750 of those students despite higher enrollment.
Why it matters: Denton ISD’s board policy CE(Local) sets two financial goals the staff used as benchmarks: maintain total general operating fund balance at 25% of general fund expenditures and maintain an unassigned fund balance of at least 15% of expenditures. Stewart said the district last met the 25% goal in 2022–23 (28.23%) but projects the ratio for 2024–25 at about 16% and, under potential reductions discussed this spring, at about 13.42%. The unassigned fund-balance ratio met the 15% goal in 2022–23 (18.36%) and is projected to fall to about 4.8% for 2024–25.
Stewart also walked trustees through operating results from recent audits showing payroll is the largest cost category and contracted services the second-largest. She said payroll as a percent of total expenditures has ranged roughly between 79.6% and 84.1% over the past nine years and that outside payroll and contracted services there is little remaining discretionary spending.
Trustee and legislative context: Trustees and district leaders discussed state-level options that could affect the district’s finances. Doctor Rivera (district leader) reminded the board that planning must be based on current law while noting ongoing sessions in Austin and reports that some legislators prioritize teacher pay increases. Trustee comments ranged from urging permanent increases in the state basic allotment to criticisms of the legislative calendar and committee delays. Trustee Stafford urged action and said state surpluses should be used to address school funding.
No final budget decisions were taken at the meeting. Stewart said the presentation kicks off the district’s spring budget season and staff will return with further updates, potential reductions and recommendations ahead of the June budget adoption timeline.
For the record: The budget presentation and fund-balance slides were drawn from the district’s audit and internal projections and were described on the record during the Feb. 11 board meeting by a staff presenter identified in the transcript as Jennifer Stewart and discussed by Doctor Rivera and trustees.
