Pflugerville ISD public hearing: proposed 2024–25 budget shows $8 million full‑year deficit; proposed tax rate is lowest in 30 years

Pflugerville Independent School District staff presented the proposed 2024–25 maintenance and operations, debt service and food-service budgets during a public hearing Aug. 15, saying the full‑year projection shows an $8,000,000 deficit while the accounting transition year would record a large contribution to fund balance.

Miss Lane, who facilitated the hearing and presented the budget, told trustees the 2024–25 proposal is built on assumptions including enrollment of about 25,200 students, a 91% average daily attendance rate and 5.45% property-value growth. "The budget is built on some assumptions that are likely to fluctuate," Lane said, and staff will monitor and pivot as needed.

The district proposed a maintenance and operations rate of 78.69¢ and an interest-and-sinking (debt service) rate of 32¢ for a total proposed tax rate of $1.1069 per $100 of taxable value. Lane said that is "the lowest rate in over 30 years," and explained that rising property values and state aid compression under House Bill 3 affect collections and state aid in opposite directions.

On revenues and expenditures, Lane said the district projects roughly $289 million in revenue and $297 million in expenditures, and noted a planned recapture payment (state recapture/Robin Hood) of about $9.2 million. "If the district could keep that recapture portion, we would be looking at a $1,000,000 surplus," she said, explaining how recapture affects the district’s bottom line.

Staff also presented 2023–24 budget amendments: a $1,000,000 contribution to the health‑insurance fund, and a school nutrition fund amendment showing a $383,000 revenue increase and $341,000 expense increase (leaving a reported $3,700,000 deficit in the nutrition fund that the district said is being managed from an excess fund balance). Lane told trustees, "Please don't panic," and said the district intentionally uses fund balance timing to smooth capital purchases.

The presentation included a $626,800 allocation for accelerated instruction in 2024–25 (described as required by the Education Code and substantially higher than prior-year amounts), and a preview of a defeasance resolution to pay some bonds early of up to $17,000,000; staff said the defeasance item will be brought to the regular meeting for approval.

Trustees asked clarifying questions about state aid impacts from recent property‑tax relief measures, the magnitude and trend of recapture, special‑education funding shortfalls and how long the nutrition fund would be run intentionally at a deficit. Lane said the timing of capital purchases will affect whether 2024–25 is the last year the nutrition fund is run at a planned deficit.

The hearing concluded with no final vote on the budgets or rates at this meeting; the budgets and the defeasance resolution were presented as items to be considered at the regular board meeting. The board recessed briefly and then adjourned the special meeting by recorded motion (motion carried 7–0).