Sheldon ISD outlines deficit mitigation plan, staff attrition review
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Summary
District leaders described a projected budget strain driven by enrollment declines and payroll, identifying roughly $1.7M in current savings and planning an attrition committee to review position fills; administration projects using about $6.5M in fund balance absent additional revenue.
District finance staff told the board the general operating budget began the process with an expected $4 million shortfall and that updated payroll and enrollment figures have increased pressure on fund balance.
Speaker 5 said the district opened with a $4 million deficit estimate and later identified additional needs after enrollment and payroll updates; he told the board that about 400 fewer students in the opened-year enrollment affected projections. To address the shortfall administration formed an attrition committee that will review vacancies before replacing positions and look for internal transfers or temporary substitutes as alternatives to hires.
Speaker 5 said $1.7 million had already been saved and that, depending on state revenue and tax collections, the district might use about $6.5 million of fund balance by the end of the year. He cited ongoing measures to move eligible capital improvements to bond-interest funds where appropriate and to work with tax attorneys to review prior-year valuations to avoid leaving money on the table. Audited fund balance as of 6/30/25 was presented as $36.3 million and the projected fund balance "as of today" was cited at about $29.7 million; administration said it prefers a target near $30 million.
Administration said demographic results (initial draft expected Feb. 13) and further review will guide whether additional staffing or budget actions are required. The board scheduled additional monthly financial tracking updates.