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LTISD projects $4.1M deficit under current assumptions; staff outlines budget timeline
Summary
District finance staff presented a preliminary FY 2026-27 outlook showing a projected $4.1 million deficit, enrollment decline to ~10,462 students, and startup costs tied to a planned High School 2. Administrators outlined April-June workshops and said they will seek cost-savings and revenue options.
Pam Sanchez presented a high-level preliminary view of the Lake Travis ISD general operating budget for the 2026-27 school year and a five-year forecast aimed at guiding staffing, compensation and program decisions.
Sanchez told trustees the district is using conservative assumptions: projected enrollment of 10,462 students for next year (a decline of about 130 from the current snapshot) and a 2% property-value projection. Under the current assumptions, Sanchez said revenues would not cover expenditures and presented a projected deficit of roughly $4,100,000.
She noted the district realized a one-time accounting effect tied to the fiscal-year change that produced roughly a $10,000,000 boost (realizing 12 months of revenue but 10 months of expenditures for the shortened reporting period) but cautioned that the underlying trend still produces a fund-balance dip by 2028 without policy changes. Sanchez highlighted startup and staffing costs related to a planned second high school: initial non-payroll startup earmarks of about $200,000 and recurring operating/staffing costs that could rise in later years.
Sanchez outlined the process and schedule: a first board budget workshop planned for April 1 to consider staffing and compensation; a second workshop May 6 to refine revenue projections with preliminary certified values; presentation of proposed budgets and a compensation plan at the May 20 meeting; and the formal budget hearing and adoption by June 30, with tax-rate adoption in August after certified property values are finalized.
Board members and staff discussed options to reduce the deficit, including efficiency measures, maximizing facility utilization, investigating revenue opportunities from district-owned land, and careful consideration of any compensation changes. Trustees emphasized protecting instructional programs while pursuing cost savings and urged staff to seek creative options that preserve employee compensation where possible.
Sanchez said administration will return with more detailed options as the budget process advances.
