CFB ISD faces $20 million enrollment-driven revenue shortfall, board told

Carla Settle, the district chief financial officer, told the board that a sharp drop in student enrollment has materially reduced the district's revenue and increased state recapture obligations. "The net effect of this delta in enrollment does impact our fund balance and projected deficit," Settle said, linking lower average daily attendance and the state's recapture formula to a larger-than-expected budget gap.

Settle presented a decade-long enrollment decline of 10.39% since 2019'20 and said the district's loss of students produced a direct reduction of roughly $5.6 million in formula funding. She said higher property values combined with falling enrollment raise the district's recapture payment and that, together, the enrollment decline and recapture increase have produced about a $20 million revenue shortfall for the current year and a projected $26 million drawdown of fund balance that the district must address.

"When enrollment declined sharply in a property wealthy district, recapture calculations can leverage against our tier 1 entitlement," Settle said. The presentation described recapture (sometimes called "Robin Hood") as state policy that redirects excess local tax effort to other districts and noted the district has moved from primarily tier-2 recapture into a position where tier-1 recapture affects entitlement calculations.

Superintendent Doctor Kevin Eldridge and board members framed the shortfall as the product of factors largely outside local control, including central appraisal district valuations and state policy. Trustee Randy Shakman said the board has limited control over state-determined recapture and property valuations. "There is a lot of things outside our control," he said, and noted the district must work within that reality.

Settle outlined the district's planning approach to close the gap: a cross-departmental, priority-based budget process that begins with central administrative reductions and then moves to campus-level budgeting. Key departments in the process include student services (attendance and retention), human resources (staffing ratios and position optimization), facilities/technology (long-range planning), special services, communications, and operations. The timeline includes multiple board update points (November, January, March, April and beyond) and culminates in adoption of the final tax rate and budget after certified property values are received in July.

Board members pressed administration on near-term and longer-term responses. Trustee Kim Brady emphasized the limitations on using capital bond proceeds or other restricted funds to cover operational shortfalls and urged public advocacy on school finance. Trustee Marjorie Barnes compared the situation to a boat taking on water: "Our state comes back and drills another hole in it," she said, urging advocacy to change state funding policy. Settle said the district will present a range of options in the coming months and emphasized the board's role in weighing student impact in every decision.

The presentation did not propose specific personnel reductions or program eliminations on Nov. 6. Settle said the district has used one-time sources and prior-year cost controls to stabilize finances and will continue collaborative planning to present balanced options. "While we face financial challenges, our focus remains squarely on students," she said.