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Spring ISD trustees weigh budget cuts and return to TRS ActiveCare as enrollment falls
Summary
Trustees reviewed a preliminary 2026–27 budget that counts on a one‑time $20 million revenue source that won’t recur, flagged declining enrollment and discussed targeted stipend changes, marketing to retain students and a one‑time nearly $10 million fee to rejoin the TRS ActiveCare health plan.
Interim Chief Financial Officer Bridal Johnson told the Spring ISD Board of Trustees that the district’s initial 2026–27 budget faces a difficult outlook after a one‑time $20,000,000 revenue source used in 2025–26 will not continue and enrollment has declined.
"The district received a 1 time $20,000,000 revenue source in 20 25, 26 that would not continue in 2627," Johnson said, and the districtʼs enrollment projections have fallen from an initial 33,698 to a conservative projection of about 30,860 students for 2026–27.
Why it matters: lower enrollment reduces state funding tied to student counts and, combined with the loss of the one‑time revenue, produces a projected shortfall the district is working to close through one‑time savings, targeted compensation choices and new revenue sources.
Johnson outlined the arithmetic and options. She said the district began the year below projection by roughly 1,348 students (she later referenced a 1,490‑student difference in the presentation), which she said equates to an estimated revenue loss when multiplied by the basic allotment (Johnson cited a $9,300,000 estimate). Her presentation listed proposed reductions and savings, including a $12,000,000 estimated campus staffing leveling savings, leadership reductions (~$230,000), non‑salary department cuts (~$3,200,000), removal of a benefits stipend (~$5,000,000) and other potential reductions totaling about $22,500,000 (staff described those savings as primarily one‑time for the coming fiscal year).
Health care and TRS ActiveCare: trustees pressed staff about whether to pay a stabilization fee to rejoin the Teacher Retirement System (TRS) ActiveCare health plan. Johnson and district staff said an earlier $9,000,000 estimate for the reinstatement/stabilization fee came in at nearly $10,000,000. A staff member warned that while the stabilization fee is one‑time, remaining in a self‑funded plan exposes the district to ongoing claim variability; the staff member characterized the districtʼs current self‑insured deficit outlook as potentially in the $12 million to $14 million range depending on remaining claims.
Trustee Adams questioned that trade‑off directly. "That's a lot," Adams said. "That's about the same dollar amount of the deficit that we're experiencing," and asked whether the board would be better off remaining self‑funded or paying the reinstatement fee.
Compensation and recruitment: a district staff presenter reviewed the TASB salary study showing Spring ISD generally ranks low in average teacher pay against peer districts. The presenter offered options including targeted increases for special‑education teacher stipends (estimated cost $520,000), raising substitute pay by $5 per day (estimated $116,003.95) and a $500 monthly incentive for special‑education guest teacher substitutes (estimated $180,000). Staff emphasized that salary increases are recurring costs and would require offsetting revenue or structural changes to compensation.
Special education staffing was a notable focus: staff said the districtʼs certified special‑education fill rate was approximately 78% and highlighted difficulty filling those roles nationally, recommending targeted incentives and other retention measures rather than across‑the‑board stipend cuts.
Recruitment and marketing: Superintendent Cuellar described a planned marketing campaign and family outreach, saying "We already have over 1,150 respondents" to a family survey that will inform targeted recruitment. Trustees urged presenting budget options side‑by‑side with measurable student‑outcome evidence and encouraged using employees and positive family experiences as ambassadors to attract and retain students.
Board action and next steps: no formal budget votes were taken. The board recessed to closed session and later reconvened; Trustee Hodges moved to adjourn and Trustee Newhouse seconded. The meeting adjourned at 9:07 p.m.
The board asked staff to provide additional data for decision making (including multi‑year projections comparing TRS ActiveCare versus remaining self‑funded) and signaled the final budget options will be brought back for further review at a work session before any formal adoption.
