Consultant says proposed split would reallocate, not create, state/local school funding

Mo Casey told Keller ISD trustees on Jan. 30 that a proposed East/West split would not generate net new combined state and local M&O funding; rather, it would change how existing revenue is allocated between two districts because those dollars "follow the student." The revenue-only analysis used 2023'24 student and property-value data and assumed the same tax rate as the combined district.

Consultant Josh Haney presented a draft map that would put roughly 70.5 percent of average daily attendance in the Western portion and about 55 percent of property value in that same portion. Under those assumptions, per-ADA funding would differ by side after accounting for higher special-education and compensatory allotments in the West, but the combined total roughly matched current revenues.

Haney repeatedly cautioned that his firm's exercise did not analyze how split-related expenditures, duplicative central administration costs, capital-asset allocation or debt service would be apportioned. He also said the analysis excluded federal programs such as Title I and IDEA and therefore cannot be used alone to estimate net benefits.

Board members and public commenters asked whether reduced recapture or other state-equalization mechanics might change the picture over time; Haney said those questions require a separate analysis of debt, tax rates and I&S revenue equalization.

The board will not yet rely solely on this revenue exercise to make decisions; trustees asked for follow-up work on expenses, debt and asset division before moving forward.