Budget Update

Budget progress - Year 1Revenue:

● Open enrollment modification increased participation by over 50 learners

● Advertising revenue estimated increase of over $100,000

● Marketing efforts: I ❤ CISD

● Visioning work: tuition based Pre-K, daycare

Budget progress - Year 1Expenditures:

● 10% reduction in district level budgets● 5% reduction in campus budgets● Reduction in covid related budget● New custodial contract● Transportation efficiencies: reduction in routes● Staffing efficiencies: reduction in FTEs & overall payroll expenditures

2021-22 budget vs. prior year budgetRevenues:

● Increase of 4% ○ Local revenues + 5.8%○ State revenues - 14.5%○ Federal revenues -21.1%

Expenditures● Decrease of 0.4%

○ Payroll - 1.1%○ Recapture +12.4%○ Contracted Svcs - 6.7%○ Supplies -19.6%○ Other - 7.6%

Original budget vs. actualsAssumptions:● Enrollment - demographic studies

○ Impacts funding entitlement● Average Daily Attendance

○ Impacts funding entitlement● Property value growth

○ Drives M&O tax rate compression○ Provides additional funding to the district via taxpayer

approved “golden pennies” ○ Impacts Formula Transition Grant funding

● Legislative action○ Impacts school funding formulas

Original budget vs. ActualsSchool Year Overall variance to

original budgetOverall variance to amended budget

Contributing factors

2015-16 $3 m (3%) $4 m (4%)

2016-17 $7 m (3%) $6 m (4%)

2017-18 $2 m (2%) $4 m (3%)

2018-19 $9 m (6%) $8 m (5%) HB3 impact on accruals, 2 years of SHARS revenue

2019-20 $6 m (4%) $6 m (4%) HB3 funding implementation from Summer 2019 - Spring 2020. Covid revenue reduction/expense reduction in Spring 2020. Hold harmless funding. Expenditures reclassed to ESSER 1.

2020-21 (pre-audit) $11 m (7%) $10m (6%) Property values certification after budget adoption. Covid impact on enrollment. Covid revenue reduction/expense reduction. Hold harmless funding. Expenditures reclassed to ESSER 2.

Enrollment2020-21 school year October snapshot: 13,053

Actual enrollment as of Sept. 24, 2021: +162 13,215

Demographic study estimate for 2021-22: 13,329 -144

Budgeted enrollment for 2021-22: +306 13,359

Attendance rateTypical first 6 weeks attendance: 98%

-2.2%Actual first 6 weeks attendance: 95.8%

-0.2%

Budgeted attendance rate for 2021-22: 96%

Actual enrollment vs. Budgeted enrollment

Budget Assumptions:● Projected student enrollment = 13,359● Attendance rate = 96%

Actual enrollment in first 6 weeks:● In-person student enrollment = 11,426● Remote student enrollment = 1,789● In-person Average Attendance rate = 95.8 (typically at 98% for 1st 6 weeks)

Estimated variance to budget:● Total enrollment = 144 less than budgeted● Attendance = 0.2+% lower than budgeted (for in-person)● Remote funding estimated loss of ADA = 460 ADA (for 1st nine weeks)

= Total Enrollment 13,215

Remote Learning Funding - SB15

IS student enrolled in EC/Pre-K? YES NOT FUNDED

Remote Learning Funding - SB15

Waiver required if over 10% of total enrollment is remote (funding uncertain):● ≅ 1900 learners signed up for remote learning● 20 did not show● each learner that participated for 1 day counts toward the 10%● Approximately 560 learners will be unfunded unless waiver is approved by TEA

Partial funding:● 100 or so learners moved back to in-person learning prior to end of 9 weeks

No funding:● 105 are Pre-K learners that do not qualify for remote funding● 83 learners did not pass a foundation curriculum course (K-6)● 51 learners did not pass a STAAR exam● 17 learners did not take a STAAR exam and did not pass the local assessment● 29 learners had 10 or more absences

CISD statistics:

Adjustment to 2021-2022 Budget

Adjustment to net state funding: $2,710,740Adjustment to recapture expense: - $4,939,986NET adjustment to budget : ($2,229,246)

REVISED: ORIGINAL: Adjustment:Revenue: $163,117,926 $160,407,186 $ 2,710,740Expenditures: $167,129,756 $162,189,770 $ 4,939,986

Budget deficit: ($ 4,011,830) ($ 1,782,584) ($ 2,229,246)

87th legislative changes to funding

HB 1525: “the HB3 clean-up bill”

● New calculation and cap on fast growth allotment

● Cap on formula transition grant

● Update in calculation for CTE funding

Other changes to funding

Instructional Materials Allotment - reduced by over 60%● Find other sources of funding to provide those resources

ESSER (Elementary and Secondary School Emergency Relief) funds● Esser 2 was supplanted by the state to provide hold harmless funding● Esser 3 and Esser Supplemental

○ Funds focused on learning loss, safe return to school and continuity of services, social-emotional health and learning

Future budget projection

Adopted Budget 21-22

Proposed Amended

Budget 21-22

Projected Budget 22-23

Projected Budget 23-24

REVENUE(net recapture)

122,290,380 120,061,134 122,956,015 124,444,174

EXPENDITURES 124,072,964 124,072,964 126,633,780 129,249,580

Surplus/(Deficit) (1,782,584) (4,011,830) (3,677,765) (4,805,407)

Revenue amount that is temporary (Formula Transition Grant)

1,337,411 1,337,411 3,463,783 3,149,404

District challengesShort-term:

● Impact on enrollment due to covid● Reduction in fast-growth allotment● Instructional Materials Allotment reduction

Long-term:● Slowing enrollment growth● Increase in Pre K enrollment (funded 50% by the state)● Expiration of formula transition grant (2023-24)● SHARS program changes - reduction in revenue

Spring 2021 Demographic Report Enrollment growth is projected to decline within the district

Historical and projected enrollment

Actual enrollment through 2021 (PEIMS fall submission), projected enrollment through 2026 (Spring 2021 Demographic report)

Spring 2021 Demographic Report

Elementary long-term projection vs. capacity

Elementary capacity: 6,810Maximum elementary enrollment projected: 6,149Actual Elementary enrollment (Oct 2021): 5,746Unused capacity in 21-22: 1,064Unused capacity projected in 30-31: 661