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Duncanville ISD warns of multi‑million dollar shortfall as Legislature moves funding bills
Summary
At a May budget workshop, Duncanville ISD officials outlined an estimated $18 million shortfall for 2025–26, described a $6.78 million state funding estimate tied to House Bill 2, and described a set of planned one‑time and ongoing reductions to narrow the gap while awaiting final state action.
Duncanville ISD finance officials told the Board of Trustees on the evening of the district’s budget workshop that the district faces an estimated $18 million net shortfall for fiscal 2025–26 and is monitoring pending state legislation that could change the picture.
“Senate Bill 2 ... is on the way to the governor with the amendments from house to be signed into law,” said Ms. Mayo, Duncanville ISD chief financial officer, describing recent action on vouchers and other bills. On House Bill 2, Ms. Mayo said one estimate of the bill as written would bring about $6,781,000 in additional revenue to Duncanville ISD but that the district would be required by the bill’s current language to dedicate 40% of any year‑over‑year increase to salaries for nonadministrative staff.
The district’s budget baseline assumes a 3% taxable assessed‑value increase, enrollment of 11,232 and average daily attendance of 9,987, Ms. Mayo said. Under the district’s current assumptions, year‑end projections for fiscal 2024–25 show a net impact to fund balance of about $9,400,000 and fund balance equivalent to roughly 5.14 months of operating reserves.
Why it matters: Duncanville ISD must adopt a balanced budget by June 30 under state law. Pending changes in state aid and local tax calculations — including proposals that would restrict interest & sinking (I&S) debt options and change allowable bond election dates — could materially affect the district’s ability to fund raises, retain staff and sustain programs.
Key figures and options: Ms. Mayo summarized scenarios officials are considering to narrow the gap, including historically observed vacancy savings (estimated at $6 million), one‑time nonpayroll savings, federal reclassifications and targeted position reductions through attrition. She said the district’s current estimate of the 40% salary requirement from House Bill 2 would equate to roughly $2.7 million of the $6.78 million estimate; 60% of the funds would remain flexible under current bill language.
Board members pressed staff on timing and risk. Trustee McNeely asked whether adopting raises before the legislature signs a bill could create duplicate obligations; Ms. Mayo responded that prior law required districts to adopt raises after statutory language took effect to count toward the state’s maintenance rules. “If nothing is adopted, then the current budget doesn't assume any additional obligations,” Ms. Mayo said. The district’s counsel and financial advisors remain “carefully tracking developments,” she added.
Next steps: Ms. Mayo told trustees the board will receive updated preliminary taxable values from the Dallas Central Appraisal District on May 12 and May 27, and the district will publish required notices to the Dallas Morning News ahead of the June 30 budget adoption deadline. Officials said they will present updated funding estimates at the board’s May 12 workshop and at the May 19 regular meeting.
Discussion versus decision: The board did not take formal action on the budget at the workshop. The presentation was informational and staff recorded questions and direction for follow‑up.
