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Leander ISD projects FY27 deficit within board's 3% parameter as certified values fall
Summary
Finance staff reported a certified property value change (combined taxable decrease ≈0.77%), a net $3M decrease after hold-harmless adjustments, and a FY26'27 proposed budget that adopts a deficit within the board's 3% parameter while warning of additional reductions needed in subsequent years if revenues do not improve.
Finance staff briefed trustees on certified property values, projected revenues and the district's proposed budgets for FY2026'27.
Staff reported certified preliminary values that showed a combined taxable decrease of about 0.77 percent versus the district's earlier 3% assumption. That change increased state aid in some lines but reduced the district's hold-harmless assistance, producing a net local revenue decrease of roughly $2.23 million (finance staff summarized the combined adjustments as a net $3 million impact when other hold-harmless and recapture changes were included). Administrators said the proposed budgets (general fund and debt service) remain within the board's adopted 3% budget-parameter guideline but will require conservative assumptions and additional reductions unless revenue improves.
The finance presentation included the district's debt-service overview (INS rate projected at 33 cents) and noted previous bond refundings and rating-level context. Staff also discussed a pending administrative-law process related to disputed charter/charter-like revenue (an appeal with a scheduled hearing) that could affect timing of some state-held funds for 2022'24. Trustees asked about scenarios in which property values fall further and about contingency planning for HVAC failures and other urgent maintenance; staff said the debt-service fund balance and fund management provide a near-term cushion, but continued negative trends would require harder choices.
The board scheduled final budget adoption actions for mid-June; the tax rate will be set after July certified values.
