RFISD business office reports $5.8M budget deficit, enrollment shortfalls and potential revenue hits from state homestead exemption changes

Rockport‑Fulton ISD’s business office presented updated budget figures and enrollment trends, warning trustees that state policy changes and enrollment volatility could deepen the district’s current budget gap.

Kathy Henderson, presenting the business office report, reminded the board that the adopted 2024‑25 budget included a projected $5,755,000 deficit. Henderson said updated figures using first‑semester average daily attendance (ADA) and new comptroller property values produce an estimated additional state revenue of about $457,562 but also increase recapture by about $1,115,000. She said a net effect remains that the district must continue to find expense reductions to lower the deficit.

Henderson corrected an earlier figure on insurance premium savings and reported roughly $869,000 in premium savings relative to budgeted estimates; she said other updates and reduced insurance costs bring the district closer to narrowing the deficit but do not eliminate it.

Enrollment and collections: Henderson reported current enrollment is about 86 students below the adopted projection of 2,971. Since Labor Day the district recorded 281 withdrawals and 229 new entries, a net loss of 52 students through January. She also noted property‑tax collections in January were 1.93% higher than last year by percentage of levy, which she described as a positive collection indicator.

State legislative risk and other revenue details: Henderson and board members discussed proposed state legislation to increase the homestead exemption (discussed in testimony as a change from $100,000 to $140,000) and the district’s concern that hold‑harmless provisions historically do not fully offset local revenue losses. Henderson said the district could lose roughly $1 million if the exemption change proceeds as discussed in the legislature. She criticized the lack of fuller statewide accounting for how exemption changes affect school finance. Henderson also updated trustees on SHARS billing: projected revenue had been budgeted at $221,000 but actual receipts through January were about $27,008; she said the district is evaluating whether to continue the SHARS filing program.

Ending: Henderson said the district will continue to refine projections, evaluate expense reductions and present updated budget scenarios at future meetings. She invited trustees to participate in finance committee briefings for deeper review.