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Round Rock ISD budget update: district projects roughly $11.3 million shortfall amid state funding uncertainty
Summary
Finance staff told trustees a revised homestead-exemption projection and new TEA calculations reduced district revenue by about $11 million, producing a projected $11.3 million deficit under current assumptions; staff said more solid TEA numbers will arrive in February–March.
Finance staff presented a quarterly update to the Round Rock ISD Board showing a material change to the district’s revenue picture following a new state calculation tied to the homestead exemption.
Mr. Covington explained the district reduced its enrollment estimate slightly and that a new TEA/Omar spreadsheet projection tied to an expanded homestead exemption reduced the district’s tier 1 revenue by 'about $10.5 million' and its 'golden pennies' revenue by roughly $1.2 million. Taken together, the amended figures dropped projected revenues from about $482 million to about $471 million, producing a projected deficit of approximately $11.3 million under the assumptions shown in the presentation. Mr. Covington said the district also expects approximately $1.3 million in SHARS (school health and related services) reimbursement for the year and judged that reimbursement 85–90% likely.
Mr. Covington and other staff emphasized the state’s new 'projected settle up' timeline: TEA will run a February projection using data from the first three six-week reporting periods and is expected to provide a clearer settle-up in March. District staff and trustees described conversations with the commissioner’s office and local legislators, but said the final state numbers and any legislative fixes for the 16 affected districts will not be clear until TEA’s February/March run.
Trustees cautioned against counting on a favorable settle-up, with one trustee urging prudence rather than assuming a potential midyear surplus. The board approved the consent agenda (H1–H8), which included a budget amendment consistent with the third-column 'true budget amendment' staff had presented; that consent vote passed 7–0.
What’s next: staff said they will monitor TEA’s February run and provide updated projections once TEA publishes its projected settle-up; trustees asked staff to be conservative in planning until state figures are confirmed.
