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Duncanville ISD finance update: district projects a fiscal shortfall but retains multi‑month fund balance
Summary
Duncanville ISD finance staff told trustees the district faces a projected general‑fund shortfall of roughly $18.9 million for 2024–25 but entered the year with about $71.8 million in fund balance (roughly six months of expenses), giving officials time to plan measured cost containment.
Duncanville ISD finance staff told trustees the district faces a projected general‑fund shortfall for the 2024–25 fiscal year but retains a multi‑month fund balance that gives the administration time to pursue targeted cost containment.
Ms. Brandy Mayo, the district finance presenter, said audited 2023–24 year‑end results left the district with $71.8 million in ending fund balance. Mayo said that amount equates to roughly six months of operating expenses and is well above standard thresholds credit agencies use (about three months). The district’s preliminary forecast for 2024–25 shows a general‑fund gap of about $18.9 million, Mayo said, but also noted several partial offsets: estimated payroll vacancy savings of roughly $6 million and estimated non‑payroll savings of about $2 million.
Mayo and other staff reviewed statewide drivers that affect local budgets: declines in student enrollment and average daily attendance since the pandemic, the end of ESSER grant funding on Sept. 30, 2024, and state funding that has not kept pace with inflation (staff cited a roughly 22% cumulative inflationary increase since the last state basic allotment increase). The district also cited unfunded or underfunded state mandates and enrollment changes that reduce ADA‑based revenue.
Cost containment and next steps: District leaders said they are continuing a multi‑pronged cost‑containment strategy that includes:
- Maintaining a previously adopted 10% reduction to campus and department discretionary budgets for one more year to examine longer‑term reductions with an eye to protecting student programs; - Pursuing energy‑management and HVAC upgrades through the bond program to reduce utility costs in the general fund; - Evaluating staffing allocations and central‑office expenses for targeted reductions while preserving academic priorities; - Running monthly payroll and non‑payroll forecasts and reporting regularly to the board.
Mayo said those combined steps, plus normal vacancy savings, mean the district may not need to implement the deepest reductions immediately and can plan changes intentionally to limit impacts on student programs. Trustees asked for monthly updates and more granular details on staffing and transportation costs; staff agreed to provide monthly forecasts showing projected June 30 balances.
Why it matters: District leaders stressed that many Texas districts face similar pressures—Mayo cited statewide data showing 43% of districts reported budget deficits in 2023–24 and about half did so in 2024. The board will consider further recommendations as staff refines monthly forecasts and analyzes legislative developments that could affect the 2025–26 funding picture.
Sources: Presentation by Ms. Brandy Mayo and discussion in the meeting; staff referenced district audited financials, Zonda demographic projections and statewide enrollment/finance trends.
