Leander ISD trustees flag $12.7–$12.8 million deficit; ask administration for pay/benefit scenarios

Leander Independent School District administrators told trustees at a special budget workshop that preliminary forecasts for 2026–27 show an estimated deficit in the range of $12.7–$12.8 million under the district's baseline assumptions.

Administration reiterated the assumptions that underlie the draft plan: projected enrollment of about 41,041 students, a budget parameter of 1.5 percent, no pay increases or employer health‑care cost increases included in the baseline, and a $1,000,000 placeholder for a pay‑study expense. “Enrollment obviously is very key to revenue,” a presenter said while explaining why the district offered both a projected and a reduced‑growth scenario.

Staff walked trustees through two enrollment scenarios. Under the district's projected enrollment scenario revenues stayed roughly flat against recent projections; under a reduced‑growth scenario administrators said the deficit could increase by roughly $6 million, meaning the district would have to identify additional reductions or new revenue. “If you used reduced growth ... we're going to make $18,000,000 in reductions is what we would need to be shooting for,” a presenter said when outlining the aggressive scale of cuts tied to lower enrollment.

Trustees repeatedly emphasized retaining staff as a priority. Several members said they want to see what pay‑increase options would cost and how those costs interact with health‑insurance changes. One board member framed the trade‑off plainly: adding a pay increase now “means we will need to identify additional reductions unless we do get revenue somewhere else down the road.”

Finance and benefits staff reviewed the health‑insurance fund's recent volatility and prior transfers made to support the plan; staff warned the employer monthly contribution had been kept at $510 per month in the current budget and that increasing employer contributions or changing employee cost sharing would materially affect district costs. The finance presenter noted past transfers into the insurance fund and the sensitivity of claims and premiums, and said consultants are working on specific plan scenarios to present in coming weeks.

Program leaders briefly reviewed instructional and compliance levers administrators are studying to reduce costs or increase targeted revenue. Career and technical education (CTE) carries variable state funding weights; staff said coding bilingual and other eligible positions appropriately can increase allotment revenue, and that the district is conducting program reviews for gifted‑and‑talented, dual‑language, pre‑K and other programs to identify efficiency opportunities without eliminating mandated services.

Administration summarized currently identified reductions and levers: a committed central‑office reduction of about $1.4 million, identified campus staffing and consolidation options (including low‑enrolled campus staffing and the potential consolidation of Fabian to Westside), and potential revenue avenues such as a voter‑approval tax ratification election or one‑time land sale proceeds. Even with those items, staff said roughly $4.9 million more in reductions would be needed to balance the budget without additional revenue or changes to the baseline assumptions.

Trustees directed staff to return with more detailed scenario modeling — specifically: (1) models that show the budget impact of adding pay increases and how employee contribution changes to health insurance would affect net compensation; (2) outcomes‑focused analysis for any proposed District of Innovation (DOI) changes tied to CTE staffing; and (3) an inventory of federally funded positions and contingency plans if federal funding declines. Administration said final property value (CPTD) data and TEA calculations expected in February–March will affect revenue estimates and that staff would return with refined numbers and options.

The board approved the consent agenda earlier in the meeting, then recessed to discuss the budget workshop topics; no final budget decision was taken at the workshop and trustees adjourned after directing administration to return with the requested scenarios.