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Keller ISD trustees briefed on $12.5M budget gap and debated truancy court impacts
Summary
Trustees received a budget work session update outlining roughly a $12.5 million gap that staff say will largely require staffing changes. Trustees and staff also discussed attendance improvements tied to a truancy‑court program and whether the district should shift its fiscal year timing.
Trustees of the Keller ISD were briefed on a preliminary budget shortfall at a work session and were told staffing will be the primary lever to close an approximately $12.5 million gap.
Presenters told the board that payroll and benefits account for the largest portion of district spending and that, given state funding formulas, additional local tax collections can be offset by reduced state aid. ‘‘Even if we collect more, the state will participate less,’’ a staff presenter said, explaining why apparent revenue gains do not necessarily translate into net additional local funding.
The presentation reviewed the district's key assumptions: flat new revenue, projected enrollment declines, and an average daily attendance (ADA) planning rate of about 94.6 percent. Staff noted a 0.1 percentage‑point change in ADA is roughly $200,000 for Keller ISD, underscoring the sensitivity of revenue projections to small attendance shifts.
Trustees and staff discussed the district’s truancy‑court program, implemented in earnest in 2023–24, which officials said has helped return students and improve ADA. A trustee praised the program: "I want to even call it a magical program because I've seen it in action," while another trustee cautioned the program can feel "a little too aggressive" to some families and requested that the next truancy update include counts showing how many students re‑engaged with school, how many left the district or chose homeschooling after the process, and other outcome measures.
Staff also told trustees that recent legislative changes loosened a prior 55 percent spending requirement on compensatory education funds, allowing some reallocation that could offset about $4 million of pressures. Separately, an actuarial update of workers' compensation reserves left approximately $1 million no longer required this year, which staff characterized as a one‑time offset and warned should not be relied upon for future budgets.
Board members questioned the mechanics of the district's June 30 fiscal year end. Staff said they are investigating the feasibility of moving the fiscal year to better align revenue information and budget adoption, but noted the transition would be complex — possibly requiring approval of two budgets during the change year and contract timing adjustments.
Staff emphasized that, with limited remaining budget flexibility, ‘‘every dollar counts’’ as the district continues to refine revenue projections, finalize renewal cost estimates and look for staffing efficiencies. The board did not take any budget‑related action at the session; staff said further updates will be provided as the budget process continues.
The board adjourned for a second executive session later in the evening and returned to publicly vote on a separate appointment item.
