Pearland ISD: How a Texas School District Managed a Budget Surplus amidst Budget Deficits
Introduction:
Multiple school districts in southeast Texas are struggling with budget deficits, but Pearland ISD is projecting a $4.1 million surplus for the upcoming fiscal year. This article explores the strategies employed by Pearland ISD to maintain financial stability and how the surplus will be utilized. Moreover, it delves into the challenges the district anticipates in the future.
The Power of Voter Support:
When Larry Berger assumed the role of superintendent of Pearland ISD two years ago, he knew the district would face financial constraints. However, he credits the district’s ability to stay afloat to the overwhelming support of the voters. In November, voters approved raising the district’s maintenance and operations tax rate, contributing an additional $11.2 million to the budget. This increased rate helps fund salaries, classroom supplies, and other essential expenses.
Additional Funding Sources:
In May, Pearland ISD received further financial assistance from voters through two bond approvals. The $30 million technology bond will be allocated towards computers, classroom equipment, and labs. Meanwhile, the $75 million infrastructure bond will cover costs related to electricity, HVAC, plumbing, and more. These bonds have played a crucial role in strengthening the district’s financial position.
Utilizing Funds Strategically:
Unlike other school districts facing budget shortfalls, Pearland ISD took a different approach when it came to utilizing federal funds obtained during the pandemic. Rather than allocating these funds towards staffing, the district used them to cover necessary expenditures. This strategic decision has contributed to Pearland ISD’s financial stability.
Allocation of Surplus:
The $4.1 million surplus has allowed Pearland ISD to make several important decisions. The school board approved a two percent salary and compensation increase for staff, paraprofessionals, and teachers. Additionally, $2 million will be allocated to the capital renewal plan, ensuring the maintenance and improvement of school facilities. The remaining funds will be placed in a general operating reserve, serving as a rainy-day fund.
Challenges on the Horizon:
Despite the current surplus, Pearland ISD recognizes the potential budgetary challenges that lie ahead. One concern is the basic allotment amount, which has remained stagnant since 2019 at $6,160 per student. Efforts to increase this amount were impeded by the voucher fight during the previous legislative session. Failure to address this issue promptly could lead to further struggles for many districts.
Inflation and Declining Enrollment:
Inflation poses another challenge for Pearland ISD and other districts. Rising costs for facilities, equipment, personnel, and technology put additional strain on budgets. Additionally, the district is faced with the prospect of plateauing or declining student enrollment. The opening of a new free K-12 charter school in August is expected to impact enrollment numbers.
The Limitations of Surplus:
While Pearland ISD’s surplus provides temporary relief, it is vital to acknowledge its limitations. Superintendent Berger emphasizes that the surplus of $4.1 million is merely a fraction of the overall budget, which stands at $290 million. Furthermore, inflationary pressures and necessary expenditures may deplete the surplus quickly. Consequently, Pearland ISD projects a budget deficit for the 2025-2026 fiscal year.
The Need for Legislative Action:
To ensure the long-term financial stability of school districts like Pearland ISD, legislative action is crucial. The basic allotment amount must be raised to adequately support public schools. The failure to address this issue promptly may result in more districts struggling financially.
Conclusion:
Pearland ISD has managed to achieve a budget surplus amidst widespread budget deficits in southeast Texas, thanks to the unwavering support of its community. By strategically utilizing funds, seeking additional sources of revenue, and making thoughtful allocations, the district has been able to maintain financial stability. However, the challenges of stagnant funding, inflationary pressures, and declining enrollment loom on the horizon. Legislative action is necessary to address these concerns and ensure the continued success of Pearland ISD and other school districts in Texas.
