Liberty Hill ISD outlines local revenue plans and $3.7M in preliminary budget reductions as trustees weigh deeper cuts

Liberty Hill Independent School District finance staff on Wednesday detailed a March budget projection that trims local revenue and asks trustees to consider several new local revenue streams while approving initial cuts to address a projected deficit.

Rosanna Guerrero, the district’s finance lead, told trustees that the state’s widely cited $15,503 per‑student figure is misleading because it mixes maintenance‑and‑operations dollars with earmarked bond interest, federal and temporary funds and other non‑operational items. She said LHISD’s maintenance‑and‑operations figure in 2022–23 was $9,191 per student, below the state average of $10,740.

"That $15,503 figure is extremely misleading," Guerrero said, adding that much of the cited total "cannot be used for students or operations." She urged the board to consider realistic local options while continuing to press lawmakers in Austin.

To close part of the gap, the Finance Committee recommended several near‑term revenue measures the district could implement quickly. The committee proposed a two‑option technology device fee for secondary students who take devices home: a $40 nonrefundable option or a $200 refundable option that would be returned if the device is returned in good condition. Trustees were told the refundable/nonrefundable choice is intended to keep devices accessible while covering repair costs.

The committee also recommended selling or leasing surplus land (with legal caveats about tax‑exempt status and bond structuring), allowing limited ads on buses (30″×19″ signs behind the rear wheel), campus or district facility sponsorships, and a monthly donation drive coordinated with the Liberty Hill ISD Education Foundation.

Guerrero said the district had already modeled a conservative revenue addition from bus ads and the device fee and recommended moving forward with those two items first because they can be implemented more rapidly.

Updated March projections shown to trustees reduced expected property‑tax collections by $2.8 million because of a proposed state property‑tax compression of roughly 3 cents (0.0331). Guerrero presented a district revenue projection of about $98.8 million against estimated expenditures near $100.0 million, yielding a projected shortfall in the $1 million–$1.3 million range depending on final certified property values and outcomes of pending legislation.

Guerrero and Superintendent Andrew Snell warned trustees that temporary federal COVID relief (ESSER) funding and other temporary sources previously included in statewide per‑pupil calculations are no longer available and that health‑insurance costs tied to TRS ActiveCare are expected to rise by at least 10 percent.

Trustees pressed staff on the details of possible land deals, ground leases and the legal consequences of converting district property for commercial use. A district legal/financial representative explained that a ground lease (where a third party builds and pays rent) has a different tax treatment than selling or repurposing a tax‑exempt building; the latter can require taxable bonds and risks changing exempt status depending on intended use.

The board also discussed whether to prepare for a future voter‑approval measure (referred to in discussion as a potential tax‑rate election). Staff said planning is underway so the district can act if legislative or valuation swings make a November or August ballot advisable, but any tax‑rate election would still require board action and specific timelines to call an election.

Guerrero and other administrators outlined a multi‑step reduction plan that they said would yield roughly $6.3 million in budget and staffing savings if fully implemented. The package includes: 10–12 percent reductions across many departmental non‑pay budgets; about 7.5 central‑office FTE reductions by not refilling vacancies or reorganizing functions; five positions reduced in Student Support Services after an external audit; changes to secondary teaching loads (adding one class period in some schedules) that could reduce up to an estimated 23 teacher positions; and reductions in non‑classroom specialists in programs whose state allotments constrain staffing (for example reducing GT teachers from 9 to 2 district specialists unless the district covers the difference from the general fund).

Administrators stressed those discipline‑specific reductions are designed to stay within state allotments where required and to preserve core instruction. The district projects roughly 1,000 additional students next year and plans to add an estimated 30 classroom positions and several non‑classroom roles to support growth; those growth add‑backs reduce the net savings, leaving Phase 1 roughly $1.7 million short of an original $5.5 million target and approximately $1.28 million shy of a balanced projection once planned adds are included.

Trustees voted Wednesday to approve the Phase 1 budget and staffing reductions as presented. Administration said it will notify affected employees, schedule principal meetings and hold HR follow‑ups this week.

"These are very difficult decisions," said Mr. Motel (assistant superintendent for staffing and operations), who presented staffing scenarios. "The work doesn't go away — we are just reorganizing how it gets done."

Next steps outlined by staff include awaiting certified property‑value estimates from the Williamson Central Appraisal District, tracking pending state bills that could affect revenue (including proposals on homestead exemptions, voucher proposals, and teacher‑pay legislation), and bringing further Phase 2 reduction options to the board if revenue outcomes are less favorable than projected.

Trustees encouraged continued outreach to state lawmakers and community education on how state averages and district realities differ.

The board approved the device‑fee/bus‑advertising exploration and the Phase 1 cuts by voice vote; staff will return to the board with implementation details and contract language for any program the board elects to adopt.