Celina Miller, CPA
On Monday, January 10, 2011, many school districts received chilling news that the State of Texas estimates a $27 billion revenue shortfall. The Statesman reported that some districts like Round Rock ISD have announced an immediate hiring freeze and administrators expect the State to cut the district’s funding by five percent, or $17 million. Hutto ISD is considering cutting 80 positions and closing a campus, which would save the district $1 million, according to district projections.
Representative Jim Pitts told the Houston Chronicle that “every section of the budget will be cut, including public education, health and human services, higher education and the Legislature’s budget.”
Today, the Associated Press reported that funding for public schools will be reduced by $5 billion. In total, the new estimate shows that State of Texas is facing a $15 billion shortfall. Pre-kindergarten programs will be eliminated as well as teacher incentive pay and arts education. Four community colleges in the State will have to deny incoming freshman and new students financial aid. In addition, the Texas Grants scholarship program will stop funding more than 70,000 students. The article also states that certain two-year colleges are facing closure. These include Brazosport College in Lake Jackson, Frank Phillips College in Borger, Odessa College and Ranger College.
What’s next for your district? Will layoffs be inevitable? It will be imperative that districts look at their fund balance classifications especially in light of GASB Statement No. 54. Are restrictions and commitments truly needed or can those amounts be used to close the gap? I am hoping that this legislative session proves productive. It is unfortunate that some districts that are undeserving of these budget cuts will be devastated. These districts have proven to be cost-conscious and always strive for excellence, yet the financial turmoil does not and will not discriminate. These districts should not be punished and I am hoping legislators take that into account.
[...] be eliminated, including funding for teacher incentive awards, Pre-K and high school completion. Many districts now have implemented hiring freezes and reducing programs in response to the budget … • The Central Prison Unit in Sugar Land would be [...]