Cedar Hill ISD staff outline deficits, revenue options as 2025–26 budget process advances

Cedar Hill ISD finance staff told the board in June 2025 that an amended 2024–25 budget before trustees shows about a $3.6 million deficit and that the 2025–26 budget under development still contains an unresolved shortfall.

The budget presenter said the 24–25 amendment reflects “a deficit of $3,600,000,” and noted child nutrition carried a small deficit while debt service showed a temporary surplus because bonds had been sold but payments had not yet begun. The presenter also said the district has secured a realtor and hopes to generate some property-sale revenue to offset the shortfall: “He is a go getter. He's gotten marketing materials. He's already had a meeting with the city,” the presenter said.

Why it matters: trustees must adopt a tax rate and a balanced budget in the coming months. Staff flagged several moving pieces — state law changes, certified property values and the timing of tax bills — that will affect final revenues and the district’s ability to close gaps.

Staff described next steps and revenue items that may reduce the gap. They said House Bill 2 includes funding for teacher raises, support staff increases, a modest boost to the basic allotment, and money to cover fixed costs such as insurance and benefits. Staff also said the Texas Education Agency will assign the maximum compressed rate after certified values are issued in late July, and the Dallas Central Appraisal District has told the district it expects tax bills to be distributed by Sept. 17; the district will align tax-rate adoption with its regular board meeting schedule.

Trustee Carmel Morgan urged stronger fiscal controls and questioned both the size of recurring deficits and the district’s plan to bring budgets into balance. “I cannot in good conscious support an approval of a proposed 2025–26 budget, which includes yet another deficit,” Morgan said, and cited several figures in the meeting record, saying the district faced “a third consecutive year of fiscal imbalance” and that an interim chief financial officer had disclosed “the district's true deficit was closer to $10,500,000” compared with the adopted figure referenced elsewhere in the meeting.

A public commenter pointed trustees to the district website and said the adopted budget listed a larger shortfall; that commenter described the adopted-budget figure on the site as $55,812,910. The board and staff did not corroborate that number during the discussion; staff said they would bring an amended 2025–26 budget back to the board after certified values and clearer House Bill 2 allocations were known.

Staff also noted some relatively small, additional near-term revenues: indirect-cost recoveries from grants are not yet budgeted because grant applications and planning figures are still being finalized; staff said grant-related indirect-cost revenue will be recorded once amounts are available. Child nutrition will operate under the Community Eligibility Provision (CEP) if the Texas Department of Agriculture approves the district’s application, which staff said would provide free breakfast and lunch for all students and affect nutrition-program revenues.

The board did not adopt a final 2025–26 budget at the meeting. Staff said they will present an amended 2025–26 budget once TEA compressed-rate assignments and certified property values are known and will work toward a September timeline for adoption that aligns with the appraisal district’s billing deadlines.

Details and next steps: staff asked trustees to expect certified values around July 25 and to plan for an amended budget in late summer that incorporates House Bill 2 allocations and updated revenue figures. The district will also stop sweeping accounts the same way next year, and staff said they will increase communication with campus leaders about budget needs and purchases.