CFB ISD CFO warns of declining enrollment and shrinking fund balance as budget season begins

Carrollton-Farmers Branch ISD Chief Financial Officer Carla Settle briefed trustees on Jan. 16 on the districtbudget process and cautioned that most school funding is set by the state formula and that the district has limited ability to grow its share of that funding without more students or local tax-rate changes.

Settle said demographers project a "slow steady decline" in enrollment and observed the district is likely near 24,000 students; she asked trustees to plan strategically because sustained budget deficits have reduced the district's previously healthy fund balance. She reminded trustees that the state recommends minimum reserves but board policy calls for a higher target: the state guidance suggests about two months of operating expenditures while board policy recommends three months.

Settle outlined the calendar for spring budget work: instructional and department budget planning in January, staffing and payroll development in February and preliminary budget draft presentation in June. Board members urged caution and thanked staff for mitigation work to cut expenditures so the district can maintain its fund balance while paying staff competitive wages.

Trustees said they expect additional staffing-ratio information in April and thanked the finance and audit committee for its work.