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Pasadena ISD CFO warns district deficit will exceed $23 million as enrollment falls
Summary
At an April 28 board workshop, Pasadena ISD CFO Tama Alfred Stevens said the district’s adopted 2025–26 budget included a roughly $23 million shortfall and that lower‑than‑expected enrollment and state funding changes will increase the deficit; staff outlined staffing and operational measures to reduce the gap.
Tama Alfred Stevens, the district chief financial officer, told the Pasadena Independent School District Board of Trustees on April 28 that the district’s adopted 2025–26 budget included “just over a $23 million deficit” and that revenues are now below projections because enrollment fell short of forecasts.
Stevens said the district budgeted for 45,611 students but the state PE snapshot shows about 44,136 students, a decline that will reduce state funding and expand the shortfall. She also cited retroactive changes to SHARS and other state programs that can reduce reimbursements for expenses already incurred.
“The enrollment decline was sharper than what we projected,” Stevens said. “Anytime you don’t meet your enrollment projection, there’s a reconciliation process that happens.” She told trustees the low‑end scenario increases the shortfall by roughly $10 million beyond the adopted deficit, but cautioned that the final number remains uncertain as the fiscal year closes.
Stevens outlined mitigation options under active consideration: hiring freezes and cost avoidance, administrative reductions, zero‑based departmental reviews, changes to fee collection, and steps to increase average daily attendance (ADA). She said a 1% ADA gain would add nearly $3 million to revenues. The initial planning for 2026–27 assumes no general pay raises and flat taxable values.
Trustees responded with assurances of support for staff work on the budget and repeated concerns about state funding constraints. One trustee blamed state policy decisions for financial pressure on local districts and urged continued advocacy for more state resources.
Stevens said the district will continue departmental budget reviews through May and bring a proposed budget to the board in June. She described the April presentation as a first pass intended to guide multi‑year planning and to protect long‑term fiscal stability.
The board did not take a final budget vote at the workshop; next steps include further internal adjustments, a second workshop, and a formal budget adoption process in June.
