Carrollton‑Farmers Branch ISD trustees review projected $20.4 million deficit, weigh raises and staffing cuts

Carrollton‑Farmers Branch ISD trustees on May 20 heard a detailed budget study showing persistent structural pressure on the general fund and a set of options that could include modest pay increases, one‑time bonuses or substantial reductions in positions.

District staff told the trustees that the 2025‑26 year shows a projected $12.5 million deficit and that, under the assumption of a full 12‑month fiscal year, 2026‑27 would show a $20.4 million shortfall. The presenter said a one‑time reclassification of some expenditures into TIF/199 funds reduced the current year's visible deficit but will not recur, and staff emphasized that declining enrollment and unfunded state mandates are key drivers.

“The transition year is going to buy us time,” the district presenter said, adding that the planned switch to a July 1 fiscal year would make 2026‑27 a 10‑month transition year and effectively extend the district’s runway — staff estimated the change could provide roughly 15 months of breathing room. Trustees were explicit that the shift is temporary relief, not a durable cure: without other changes the presenter said the district could return to large deficits in 2027‑28.

The presentation outlined a menu of options for the board to weigh. Staff showed five compensation scenarios — ranging from a 1% flat midpoint increase for all staff to mixed approaches such as a 2% midpoint for teachers, paraprofessionals and auxiliary staff with a smaller increase for other employees — and tied each option to modelled savings from reducing positions by 125, 250 or 350 roles. Staff said 95 positions have already been closed, representing roughly $6.175 million of the adjustments counted in the current figures.

Trustees also reviewed targeted proposals for special‑education staffing. Staff reported roughly 24 special‑education teacher vacancies and 17 paraprofessional openings; the district spends about $875,000 annually on contracted special‑education teachers. To improve retention and recruitment, staff proposed raising stipends (examples shown in the materials include increases from $2,000 to $4,500 for some positions and higher amounts for paraprofessional or vocational roles) and described a grant‑backed residency pipeline with local universities to place seven special‑education residents next year.

On teacher compensation, staff said 528 teachers will receive Teacher Incentive Allotment (TIA) payments this year — more than $5.5 million reimbursed by the state — and compared district starting pay to neighboring districts. Staff noted that a 2% raise would move starting pay modestly closer to local competitors but would not eliminate recruitment pressures.

Staff also reviewed employee benefit pressures: employee‑only premiums are rising by roughly $58–$69 per month depending on plan tier, representing an annual increase of approximately $696–$828 for many employees; the district currently contributes $375 per month toward employee health coverage. Staff explained one‑time bonuses as an alternative: a bonus can provide immediate relief for employees’ out‑of‑pocket costs but is not TRS‑eligible and does not increase retirementable salary.

Board members asked for more personnel and benefits data — for example the exact number of employees enrolled in district insurance plans — and pressed staff about the tradeoffs between salary increases and one‑time payments. Board President Cassandra Hatfield said staff will return in June with compensation options and recommended motion language; no vote was taken at the May 20 work study. Hatfield also reminded the board of existing guardrails directing a comprehensive facility assessment by December 2027 and a long‑range facility master plan by December 2028 to guide capital and possible rightsizing decisions.

The board flagged next steps: staff will provide the requested enrollment and benefits counts, finalize compensation‑option materials and bring an actionable proposal for a June vote. Trustees emphasized transparency and communication in any implementation and stressed minimizing harm while working toward long‑term financial stability. The work study adjourned at about 6:14 p.m.