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Pasadena ISD CFO says district faces a multi‑million dollar gap as enrollment and state revenue decline
Summary
At a May 26 budget workshop, CFO Dr. Tamika Alford Stevens told trustees the district faces a projected deficit that was reduced to about $48.4 million but still requires staffing and operational changes; special education, safety and transportation were cited as underfunded.
Dr. Tamika Alford Stevens, Pasadena ISD’s chief financial officer, told trustees at the May 26 budget workshop that the district is projecting just over $510 million in total revenue for 2026–27 but still faces a structural deficit that must be reduced.
“Quite simply, we are not bringing in the same level of funding that we once did,” Alford Stevens said, noting a recent decline in state revenue and enrollment. She said the May draft reduced a previously reported $57.6 million deficit to about $48.4 million but that additional adjustments remain necessary.
The presentation described three principal drivers: a sharp multi‑year enrollment decline (the district showed current enrollment of about 44,136 with a forecast of 42,560), reductions in some federal revenue streams (including one‑time ESSER funds and changes to Medicaid‑related CHARS reimbursements), and underfunded state allotments for mandatory programs. Alford Stevens cited special education as a clear example: audited 2024–25 spending for special education was about $84 million while state allotments covered a substantially smaller portion.
Alford Stevens said the district plans a mix of attrition‑driven staffing adjustments (projected savings of roughly $30 million), operational reductions (about $4.3 million), no general salary increase in the draft (but step increases and required teacher retention allotments are included), and continued efforts to boost average daily attendance — a 1 percentage‑point increase was estimated to generate about $3 million.
Trustees pressed for details on fund balance policy, the mechanics of attrition versus layoffs, and the decline in federal revenue. The CFO explained the fund balance is a 90‑day cash reserve used for cash flow and emergencies and reiterated that the district is trying to avoid involuntary job losses by using attrition and reallocation where possible.
Next steps: the administration will finalize department allocations and hold an additional budget workshop in June before presenting recommended budgets and a proposed tax rate ahead of the statutory adoption deadline. Alford Stevens said the board will be presented with the general‑fund draft along with the Child Nutrition and Debt Service budgets in the coming weeks.
The district opened the workshop to public comment earlier in the meeting and fielded multiple questions from trustees; the board did not adopt a budget at the session but directed staff to return with additional detail and options.
