The Houston Independent School District Board of Education received an update on the planning and review process for the 2011–12 budget, including the effects the state budget shortfall will likely have on the district’s budget, on Friday.
HISD Chief Financial Officer Melinda Garrett updated the board on several outside factors that will have a substantial impact on the upcoming budget. Those factors include not only a state budget shortfall that is estimated to be between $11 and $25 billion, but also increased health insurance costs and an increase in utility costs from the recently approved Renew Houston drainage ordinance. A portion of HISD’s budget is currently funded through federal stimulus funds, which will expire at the end of the 2010-11 fiscal year.
“Before, when faced with budget cutbacks, we have been able to insulate the schools and have kept cuts on a district level,” said Garrett. “For 2011–12, however, the harsh and unfortunate reality is that we are going to have to make some very difficult decisions and we may be forced to make cuts that affect the classroom.”
School funding is not likely to be resolved until the Texas Legislature holds a special session, which may not occur until late in the summer of 2011. By law, HISD must adopt a budget by June 30, 2011. Garrett and her staff have begun the budget review process with the presumption that the budget must be prepared with an anticipated shortfall that will have to be adjusted in the spring or summer of 2011.
“We will be reviewing all district wide activities for possible cost reductions and taking a hard look at how business operation services are provided and if there are alternatives to current service models.” said Garrett. “However, when reducing or providing fewer services, that also usually means a reduction in people, especially when 80 percent of HISD’s budget is for personnel.”
Garrett’s update to the board was the first of many as she and her team begin the budget review process which normally takes six to nine months to complete. Over the next few months there will be more updates, including a “Community Conversations” presentation to parents and community members on Tuesday, Nov. 9, from 6 to 7:30 p.m. in the board auditorium of the Hattie Mae White Educational Support Center, 4400 West 18th St.
The community forum will feature a presentation on the upcoming 2011–12 budget as well as a presentation on the state legislative agenda for 2011 by HISD Government Relations Director Rebecca Flores.
For more information on HISD’s “Community Conversations,” click here.
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