Trustees kickoff 2025-26 budget planning

District leaders work to reduce next year's $6.1 million projected deficit

The Midlothian ISD Board of Trustees held a budget workshop March 3 to discuss the financial outlook for the upcoming fiscal year and explore potential strategies to ensure the district's financial stability. Superintendent David Belding opened the workshop by summarizing the meeting agenda and preparing trustees for detailed conversations about current financial options, potential revenue generators and savings from expenditure reductions.

"This will be a challenging conversation this evening," Dr. Belding said. "There are no good, easy solutions to address our budget challenges. This is all about ultimately finding solutions and determining the best path forward as we work together to protect student programs and jobs."

Throughout the meeting, trustees and district leadership engaged in an in-depth discussion about budget assumptions, revenue projections and key funding drivers as they work to balance financial responsibility with the district's continued growth and commitment to student success.

Belding emphasized that while the district has been preparing for these discussions for months, the decisions ahead will be challenging. "There is no simple solution or a clear option A, B, or C," Belding said. "We have to consider all possibilities and paths forward to endure the best outcome for our students and staff because our students are at the center of our universe."

Budget Assumptions and Growth Considerations

The district is operating within its approved budget, which includes an approximate $5.8 million deficit for the 2024-25 fiscal year. Budget planning for the 2025-26 fiscal year projects a continued deficit of $6.1 million and is based on five key assumptions, including:

• A projected 2% increase in enrollment.
• An estimated 12% property value increase and subsequent growth.
• Inflationary cost increases totaling approximately $1.47 million.
• The need to maintain the current 22-to-1 student-teacher ratio for pre-K through fourth grade and 26-to-1 for grades 5-12.
• Increased staffing for specialized learning programs to meet the needs of various student populations.

"The district has been conservative in its enrollment growth projections, estimating an increase of 2% for a student population of approximately 11,663 students," Chief Human Capital Officer Dr. Aaron Williams said." These projections are essential for staffing models and financial planning."

Funding Challenges and Revenue Considerations

MISD's budget is influenced mainly by three key funding drivers: Average Daily Attendance (ADA), weighted funding, and basic allotment, in addition to state and local revenue. As local tax revenue increases, the state's contribution decreases, making it critical to carefully balance these funding sources.

The Board discussed potential new revenue streams, including the possibility of accepting transfer students living outside of MISD. Preliminary analysis suggests that implementing a transfer enrollment program for grades K-8 could generate nearly $3 million in additional revenue. A structured and rigorous process with a clear set of criteria would be developed to manage transfers effectively if implemented.

Examining Cost Saving Measures

In addition to revenue consideration, trustees explored several cost-saving measures, including:

• Reducing operational and departmental budgets by 15%, and campus budgets by 10% for a second consecutive year.
• Continued reliance on attrition to reduce staffing costs without a Reduction in Force (RIF), and
• Evaluating staffing ratios for grades 5-12 at 26-to-1, 27-to-1, and 28-to-1 to determine the financial impact of each option.MISD administration provided trustees with historical staffing data showing that MISD has eliminated 96 positions over the past four years, including 28 at the district level. If these positions had not been removed, the district's total staffing would be significantly higher today. The result of these reductions in staffing has been $4.5 million in savings over the past four years.

The workshop included discussions examining staff compensation models to provide information on the potential for different raise models at one percent, two percent, and three percent pay increases and the financial impact of each.

Commitment to Student Success and Responsible Financial Planning

Belding reinforced the district's commitment to finding solutions that prioritize students while maintaining fiscal responsibility. "We are firm believers that we must find a sustainable path forward. Running a multi-million dollar deficit year after year is not a long-term solution," Belding said. "At some point, we must consider adjustments, but we will do everything possible to minimize the impact on student programs."

While difficult decisions lie ahead, trustees made it clear that maintaining the current class size ratio of 26-to-1 is imperative to protect. Other revenue-generating ideas, such as naming rights for district facilities, were also discussed as potential opportunities to help offset budgetary challenges.

"The district is not going to move backward," Board President Gary Vineyard said. "We do not want to cut programs, especially when our students are excelling in so many areas. However, we recognize the need to take a strategic approach to ensure a financially stable future."

Trustees charged MISD administration with further examining the transfer policy option, maintaining a 26-to-1 teacher-student ratio, and the possibility of going back out for a voter-approved tax rate election. As the meeting concluded, Belding said, "We've got to protect our academic excellence. It's what's at the core of what we do. We thank you for the conversation tonight."

MISD will continue refining its budget projections in the coming months and working closely with the Board of Trustees to finalize plans for the 2025-26 school year. Community engagement and transparency remain priorities as the district navigates these financial challenges.

The next budget workshop is April 7.

Watch the recorded budget workshop

MISD school board meetings and workshops are recorded and archived on the district's On Demand website page, or click here to view the March 3 Budget Workshop.