Central Texas School Districts Prepare for State Funding Cuts (TX)

January 7, 2011

Anticipating state cuts to school funding, two Williamson County school districts Thursday announced plans to make up the difference by chopping job positions and possibly a campus.

Round Rock Superintendent Jesús Chávez announced an immediate hiring freeze. Hutto Superintendent Doug Killian said the district is considering cutting 80 positions and closing a school — something the Austin school district also will be mulling in the next several weeks.

State lawmakers are faced with an anticipated $24 billion shortfall, and districts statewide have been warned that they should expect up to $5 billion less in appropriations. Public education — funded through state aid, local property taxes and some federal aid — makes up more than 40 percent of state’s general r evenue spending.

School finance experts say it’s unclear how much the state will cut back on education or how it will divide up the shortfall among Texas’ 1,200 public school districts.

Consultant Lynn Moak said districts with a July 1 start to their fiscal years, including Round Rock, are under particular pressure to make decisions now. The state legislative session starts next week, but the budget issue might not be settled until the session ends in May.

"Districts are trying to prepare themselves for what they believe is coming," Moak said. "They’ll have to fine-tune that as they go along but many districts u2026 have sent out clear signals to the community and the staff that cuts are coming and that pay and position freezes are in place.

"It’s going to be a long legislative session and not one for the timid," he said.

The Round Rock hiring freeze includes teachers. However, exceptions may be made for positions that are funded by grants or federal money or are considered critical, district officials said.

Round Rock is the second-largest district in Central Texas with nearly 45,000 students. It has 5,600 employees, including 2,600 teachers. Administrators expect the state to cut the district’s funding by 5 percent, about $17 million.

"All areas are going to be impacted, and all departments are going to have to do their part," Chávez said. Because salaries make up 85 percent of the district’s budget, Chávez said he hopes the hiring freeze and closing of positions through attrition will add up to $14 million in savings.

Each district department must cut enough jobs to equal 6 percent of its overall salary allotment, Chávez said. Also, all departments must also cut other costs — including those for supplies, printing and furniture purchases — by 8 percent. Campuses must cut 5 percent of their operations costs.

The school board plans to adopt a $328 million budget for the 2011-12 school year in June.

The district plans to host a community forum in February outlining potential cuts and detailed information about the 2011-12 budget. Parents and community members can provide input at the meeting and on the district’s website, www.roundrockisd.org .

Chávez said he is talking to other area district administrators about collaboratively funding some positions, such as grant writers. The district also is offering its management services to other districts. Round Rock already is managing the transportation departments for other area districts, he said. "We’re all in the same boat — all having to reduce our budgets."

The Austin district, with more than 86,000 students, is expecting that 2011-12 revenue will fall $25 million to $60 million short of an estimated $842 million in operational needs. The anticipated state cuts coincide will projections of sliding property tax revenue.

Austin Superintendent Meria Carstarphen froze hiring in January 2010 for all noncampus positions; that freeze is still in effect for central office positions.

District officials are holding meetings from 6 to 8 p.m. Wednesday at the Delco Center, 4601 Pecan Brook Drive , and Thursday at Burger Center, 3200 Jones Road , to take ideas on ways to slash operating costs by using facilities more efficiently. Such ideas could include school closures.

In Hutto, wh ich has more than 5,400 students, enrollment has not met growth estimates. Now, some campuses are under capacity, said Killian, who was hired in August.

The district has one high school, two middle schools and five elementary schools. Four years ago, the district had five campuses total and had a 20 percent annual growth rate. Enrollment this year is up 5.8 percent since last year.

Closing a school for two years and shuffling specific grades to other campuses could save the district $1 million, according to district projections. Officials anticipate a $1.4 million deficit in the district’s $39 million 2010-11 budget and estimate revenue will fall about $2.5 million short of expenses in 2011-12.

Hutto is cutting up to 15 percent of central administration positions, and all departments are reducing their discretionary budgets by 10 percent, said Killian, who recently announced plans to raise revenue by trademarking Hutto’s high school mascot and selling advertisement space on school buses.

Hutto will host two town hall meetings on the budget this month.

"I take this seriously," Killian said. "I know it means jobs to people and it affects families. It’s something that kept me up at night over the Christmas holidays. It’s just something we have to do."