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After failed funding election, Liberty Hill ISD projects $7.5M shortfall and warns of possible cuts
Summary
District finance staff reported a projected $7.5 million budget shortfall for 2024-25 after voters rejected a six-penny tax increase; staff warned fund balance could fall below TEA's three-month reserve goal and said they will return with options.
Liberty Hill ISD finance staff told trustees on Nov. 18 that the district faces a projected $7.5 million deficit for the 2024-25 fiscal year after voters did not approve a proposed six-penny tax increase (Proposition A).
Director Rosanna Guerrero said the district reduced revenue projections by roughly $4.6 million in local property tax collections and about $2.5 million in state revenue, moving the district's projected total revenue for 2024-25 from about $103 million to roughly $96 million while leaving projected expenditures near $103 million. "That is a projected deficit of $7,500,000," Guerrero said.
Guerrero said the district's fund balance would fall from about $15.7 million to roughly $8.1 million if the full shortfall materializes, which is below TEA's three-month operating goal and equivalent to less than one month of operating expenditures given a monthly payroll near $7.5 million. She warned that continued deficits could affect the district's FIRST rating and credit capacity for bond sales.
Trustees discussed options including vacancy savings, program reductions, fee-based extracurriculars and legislative relief for special education and fast-growth allotments. Superintendent Snell and trustees emphasized transparency to staff and the community and pledged to bring specific reduction and revenue options to the board in the coming months.
No cuts were approved; staff said they will refine projections after PEIMS updates and present prioritized options for board consideration.
