HUTTO – Driven by an increase in staff, students and inflationary costs, Hutto Independent School District Board of Trustees approved an upcoming school year budget of $116,182,923 for the general fund, about $5.7 million more than last year.
At the June 20 board meeting, Chief Financial Officer Glenn Graham explained the budget he was proposing was based on extremely conservative numbers because some revenues and expenses couldn’t be known yet, but the education code requires budget approval before June 30.
“There are continued property protest hearings and every other day I’m getting updates from the appraisal district and every time I do the values are going down a little bit more,” Graham said. “Comparing revenue and expenses, we’re looking at a $6.1 million deficit for next year. I feel a lot more confident this year that we won’t realize that deficit because this is based on worst case scenario.”
Local property taxes are expected to account for 64.6% of the district’s 2023-24 income, so final appraisal numbers could change the amount of revenue by millions. Graham said he based his budget on a 19% increase in property appraisal values rather than the appraisal district’s estimate of 24.6%.
The budget consists of three parts – the general fund, the debt service fund and the child nutrition fund.
General fund revenues come from the maintenance and operations portion of property tax collections.
“Eighty-two percent of our budget is in payroll, which is how most districts operate. Majority of all costs are payroll,” Graham said.
Additional bus routes, another police car, new mandated safety protocols, professional development and more football away-games all added to the ever-rising cost of the district’s budget.
“The budget is $5.7 million more than last year… $7.4 million of that is in instruction, which is teachers’ salary, stipends and raises. So, we had an overall reduction in all other functions to offset some of that but the majority is going into instruction,” said the CFO.
The debt fund is paid by the interest and sinking portion of tax revenues. The 2023-24 budget anticipates a $9,731,851 surplus, which Graham said would be used to pay debt.
The child nutrition fund receives income from local “a la carte” sales and state and national programs. The budget was approved with anticipated revenues of $5.2 million and expenses of $5.06 million for a $161,637 surplus.
Board President Billie Logiudice noted the proposed budget is the result of months of workshops.
“It’s a long process,” she said.
Superintendent Dr. Celina Estrada Thomas was concerned about the dwindling support from the state, reporting that the district has decided not to hire replacements for outgoing central office workers at this time.
“The only way to impact this budget if nothing changes with legislation or finance is there are going to have to be some hard decisions about personnel,” she said.
Graham responded that the hope for state assistance has been stymied, tied up in legislation around the voucher program.
“It’s really associated with voter apathy to be honest with you,” he said. “It’s my wish that educators get involved in the political process to make some changes. That’s the only way it’s going to happen.”
