Pasadena ISD CFO outlines budget timeline, warns of legislative uncertainty

Dr. Tamika Alfred Stevens, the district chief financial officer, told the Pasadena Independent School District Board of Trustees on April 22 that officials plan to deliver a draft 2025–26 budget in late June while continuing to plan under current law because state legislative outcomes remain uncertain.

The budget presentation stressed the effects of two statewide trends: enrollment declines and inflation-driven cost increases. Stevens said the district used a demographer’s report that found smaller cohorts in lower grades than upper grades — a pattern she said reduces projected student counts and state funding tied to enrollment.

The district also reviewed legislative developments that could affect revenue. Dr. Tony Lopez, the superintendent, and Stevens focused on highlights in House Bill 2 (as reported to the board): a proposed basic allotment increase (noted in the presentation as roughly $395 per student) that would trigger required compensation language, a reinstated hold‑harmless provision for property‑tax relief, proposed changes to special education funding toward an intensity‑of‑service model, and new or delayed adjustments to allotments for transportation, early education and bilingual programs.

Stevens warned that some HB 2 provisions could reduce local flexibility — for example, language that would penalize excess I&S (interest and sinking) collections by reducing state aid if I&S collections exceed debt obligations. She also said some increases (bilingual and compensatory allotments) were delayed until the second year of the biennium. On the topic of full‑day pre‑K funding, the presentation said the bill creates a fine‑print issue: funding for full‑day pre‑K exists but could require shifting compensatory K funds unless lawmakers specify otherwise.

Board members and staff reiterated that, because bills can change during conference and until signed by the governor, the district must continue to produce a legally compliant budget based on current law. Stevens said the district is projecting a 2% taxable value increase pending certified estimates at the end of April, and that trustees must adopt three budgets (general operating, nutrition services and debt service) before the July 1 start of the fiscal year.

The board and staff set a planning path: continue legislative monitoring, finalize campus allocations, and return for another budget workshop next month with the goal of presenting a draft budget at the June 24 board meeting.

The presentation included a request for trustees to prioritize classroom instructional expenses and to avoid under‑ or over‑anticipating unknown revenue changes as legislation proceeds.