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Waco ISD finance update: enrollment up slightly; state revenue and property-value appeals cloud next year’s picture
Summary
Finance staff reported a modest enrollment increase of about 72 students for the current year, a projected revised fund-balance deficit and uncertainty tied to the Texas Comptroller’s property-value correction and pending school finance bills; the district filed an appeal with the comptroller after a statewide reporting error was announced.
Waco ISD finance staff told trustees the district’s revised enrollment is 13,366—about 72 students above the revised budget—and provided a status report on revenues, expenditures and legislative proposals that could affect the district’s 2025–26 budget.
Assistant Superintendent/Chief Financial Officer Ms. Davis (presenting the report) said the district’s January projections show a revised budget gap in the range of $12.9 million under current assumptions, though she said the district currently expects to “understand” (realize) closer to $7.3 million in deficit once preliminary revenue and expenditure variances settle. She emphasized projections were early and subject to change when final values are released in July.
Davis told the board the Texas Comptroller issued a March 14 notice that a portion of self‑reported property-value data was incorrect statewide—specifically values affected by freeze compression on over‑65 homestead properties—and that the comptroller opened a special appeal process. The district’s delinquent-tax attorney filed an appeal immediately; Davis said the district was told it would “pick up some money” but the extent was not yet known.
On state funding, Davis said preliminary estimates under current law show a projected decline of about $2.2 million in Foundation School Program revenues for 2025–26 tied to expected attendance or enrollment changes. She also summarized pending bills the administration is watching: House Bill 2 (which would increase the basic allotment and include hold-harmless and teacher-incentive changes), Senate proposals on homestead exemptions and safety allotments, and House Bill 19 (a proposal to limit local government debt service) that the administration said could constrain local borrowing.
Davis reported other revenue and expenditure notes: special‑education funding increases are expected and the district may need to allocate roughly $1.3 million toward special‑education staffing next year to meet maintenance-of-effort requirements; utility projections are largely flat because of prior contracts and expected lower fuel prices; the health insurance fund was roughly breaking even after a January contribution increase; and the district already budgeted reduced SHARS (federal Medicaid) revenue after a prior audit adjustment.
Trustees asked clarifying questions about waivers for missed days, timing of comptroller corrections, and whether the district will receive hold-harmless protections if the legislature changes yield calculations. Davis said the district will not have final local property values until July and that many revenue variables depend on legislative action this spring.
No formal action was required; the presentation served as information ahead of future budget hearings and board discussion.
