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Henderson ISD projects $2.7M General Fund shortfall; VATRE could yield $2.9M
Summary
Chief Financial Officer Nikki Warner told the Henderson ISD board the district faces a projected General Fund deficit of about $2.7 million driven by declining enrollment and state tax-rate compression, and said a voter-approval tax-rate election (VATRE) to capture remaining pennies could generate roughly $2.9 million in additional M&O revenue.
Chief Financial Officer Nikki Warner on July 14 told the Henderson ISD Board of Trustees that preliminary estimates show a projected General Fund deficit of approximately $2.7 million for 2026-27.
"Based upon current estimates, [we] projected General Fund deficit of approximately $2.7 million," Warner said, explaining the increase of about $389,000 from the prior year was largely attributable to declining enrollment and reduced state funding tied to tax-rate compression since House Bill 3. Warner said the state compresses districts' tax rates and replaces revenue with state funding, and that falling enrollment reduces that state funding.
Warner outlined district responses under consideration, including hiring restrictions, deferred maintenance, reduced technology replacement cycles and transportation and operations reviews. She also said the district has remaining "golden pennies" and "copper pennies" that could be raised through a voter-approval tax-rate election (VATRE), which the district estimates could generate approximately $2.9 million in additional maintenance and operations revenue "without increasing the district's adopted tax rate." The board did not take a VATRE vote at the meeting; Warner summarized the timeline for certified property values, establishing a maximum compressed tax rate and any election deadlines.
