Rockwall ISD projects multimillion‑dollar shortfall; trustees weigh phased cuts and revenue steps

Rockwall ISD finance staff told trustees that, absent significant changes from the Texas Legislature, the district faces a multi‑million‑dollar budget gap and must consider phased reductions aimed at protecting students and staff.

David Carter, the district finance presenter, said the starting forecast assumes no significant change to the state’s basic allotment and includes enrollment growth that will add some revenue but also additional operating costs. He reported a projected $13 million budget deficit for the upcoming year, on top of an ongoing current‑year deficit the district estimates near $15 million; combined, the district could use roughly $33 million of reserves over three years under the baseline scenario presented.

Carter said Rockwall ISD ended the previous fiscal year with about $76.6 million in fund balance and an informal reserve target of roughly 30% (about $56 million). After accounting for required assignments and one‑time uses, he said the district would be roughly $14 million short of that 30% target if no corrective steps are taken.

Trustees and staff discussed options intended to limit personnel cuts in year one. Carter outlined a multi‑phase strategy that prioritizes nonpersonnel savings first — for example, consolidating summer‑school sites, adjusting cleaning schedules, scrutinizing technology subscriptions, modest fee increases for athletics and child‑care programs, and route efficiencies for transportation. He said those steps could yield about $6.5 million (roughly 3.5% of the budget) in savings, but cautioned many of those measures are one‑time or limited and would not close the full deficit permanently.

If the Legislature does not increase the basic allotment meaningfully, Carter said later phases could include attrition‐based personnel reductions, administrative adjustments, and more impactful program cuts. “If the legislature doesn’t change the basic allotment, then our budget deficit is gonna keep getting worse,” one trustee said. Another trustee asked staff to be candid about the programs and campuses that would be affected should deeper cuts be necessary.

Board members also discussed teacher pay and staffing. Carter and trustees said the district has increased teacher pay over the past four years (more than 15% total) and paid one‑time retention incentives, but statewide teacher pay and turnover remain challenges. The district’s turnover rate was reported near 19% last year; staff noted that a large share of new teachers statewide are alternatively or emergency-certified, and that competitive pay is needed to retain experienced teachers.

Special education funding was flagged as a priority. Carter cited statewide findings that special education remains underfunded by billions; district trustees listed fully funding special education and career‑technical education as legislative priorities.

Trustees asked for additional, detailed modeling and for a timetable. Staff said they will return with a more specific reduction package and sample compensation plans in March and April, with potential board action on compensation in April.