Pasadena ISD CFO warns enrollment decline, payroll pressure will drive a deficit budget

Tamika Alfred Stevens, Pasadena ISD27s chief financial officer, told the school board on March 24 that the district is preparing for another deficit budget as enrollment has declined and some recent state funding was directed to classroom teacher compensation rather than discretionary local uses.

Stevens said the district had projected 45,611 students for the 2025-26 fiscal year when the budget was built but that the state snapshot used for funding captured a lower count, producing roughly a 3% enrollment decline that reduces state revenue compared with projections. She said local choices last year to extend raises beyond state-funded classroom teacher increases were funded with district dollars, which constrains flexibility this year.

The CFO said payroll accounts for about 87% of Pasadena ISD27s expenditures and is the district27s largest lever for reducing ongoing costs. To limit disruption to instruction, district leaders are pursuing near-term steps such as reducing overtime, delaying nonessential position replacements, and asking departments to prioritize and justify requested spending rather than rolling forward last year27s allocations.

"We are re-calibrating our budgeting approach to be multi-year and to right-size staff based on enrollment," Stevens said. She outlined a timeline that includes finalizing operational budgets in April, presenting a preliminary draft for 2026-27 in May and seeking adoption before July 1, the statutory start of the fiscal year.

Board members thanked Stevens and the finance team for the work. One trustee said state funding changes have shifted responsibility to local districts, increasing the pressure on district leaders to make difficult staffing and program choices.

The board will continue budget workshops in April and return to the issue in May and June as drafts evolve. The district has not yet presented a final adopted budget for 2026-27.