Keller ISD staff: $9.4 million starting gap for 2025'26; prior cuts of nearly $45 million

District finance staff presented the opening framework for the 2025'26 budget at the Jan. 30 board meeting and said the process will begin from a $9,400,000 starting gap.

The presenter—identified in later Q&A as John—told trustees the district has already reduced its operating budget by nearly $45 million over the past two years but still expects a $10'$15 million deficit absent further changes. Assumptions driving the 2526 draft include a projected enrollment decline of 450 students and an average daily attendance assumption around 94 percent.

John listed major budget pressures: reductions in special-education reimbursement (noted as an unfunded mandate), rising transportation costs (a contract escalator of ~4.5 percent), expected growth in utilities and property-insurance costs, aging HVAC systems and other facility repairs, and the need to fund armed security at elementary campuses. He also flagged that a 1 percent pay increase across all employees would cost about $3,000,000.

On the district's liquidity, staff said the general fund balance stands at about $47,000,000 and that TEA considers roughly $46.5 million the level at which the fund balance becomes critically low. Trustees asked for more specificity about the sources of the earlier $27 million and $17 million efficiencies and about which positions or contracts would be affected by further reductions.

"We have reduced our budget by nearly $45,000,000, which is almost 15% of our overall operating budget," the board president said in opening remarks, framing the budget discussion in the context of prior cuts.

Next steps: staff will continue to refine assumptions, bring more detailed efficiency proposals and hold committee meetings to gather community feedback before presenting a proposed budget for adoption.