Waco ISD’s proposed budget is $912,700 more than last year’s budget. The district must use $7.6 million from its fund balance or reserve fund to make up a shortfall between projected revenues and expenses.

Chief Financial Officer Sheryl Davis reported the district’s budget and expected revenue during a school board meeting Thursday. Trustees voted to move forward with the proposed budget and a tax rate of nearly $1.05 per $100 of value. They will vote to finalize the budget and tax rate during an Aug. 22 meeting.

The budget is based on an assessed property value of $14.24 billion, up from $14.23 billion last year, and a taxable property value of $8.52 billion, down slightly from $8.57 billion last year. This is the first year that the taxable property value reflects a statewide increase in the home school tax exemption from $40,000 to $100,000. Homeowners had already received this tax break last year, but the higher exemption was not finalized before last year’s budget process.

The average taxable property value in Waco ISD increased slightly to $110,727 from $96,845 last year. The average market value of residential properties is $240,714, up from $231,937 last year.

To fund the budget for the upcoming school year, Waco ISD administration is proposing a tax rate of $1.048 per $100 of value, an increase of 2 cents per $100.

The owner of a home valued at $110,727 would pay $1,161.46 in taxes annually under the new rate, up $165.31 from last year for a home of average value.

Davis told trustees that this year’s budget faces several pressures, including inflation, rising insurance and utility rates, the loss of state funding for COVID-19 recovery, declining enrollment and a stagnant state student allotment.

The draft budget assumes 13,294 students in the district for the 2024-25 school year, 223 fewer than last year. The average student population is 11,645 students per day, 171 fewer. Both enrollment and student population determine a large portion of state revenue.

To streamline the budget, over 160 positions were eliminated, but the creation of approximately 70 positions in the district’s new transportation department resulted in a net loss of 91 positions. Most of the employees in the eliminated positions were relocated to other vacant positions in the district.

Teachers will receive a general raise starting at $600, while the starting salary is $53,000. The compensation package approved by trustees also includes allowances for special education and other specialized positions. The raise will cost $587,000, plus another $93,245 for allowances.

The district has been able to reduce the number of its teaching vacancies and will have more experienced teachers than usual this year, thanks in part to more than $500,000 in signing bonuses approved last year, said Daniel Lopez, deputy director of human resources.

The 2023-24 budget ended up with a deficit of about $535,000 due to spending cuts, reductions and other savings, after a $3.1 million deficit was projected when it was passed, Trustee Jonathan Grant pointed out, noting that the $7.6 million deficit estimated for the coming school year could be as little as half that amount.

Grant suggested that the board meet to discuss strategies to raise revenue, including looking to persuade state education officials and lawmakers to provide more funding to local districts.