Flower Bluff ISD projects FY26–27 gap; board discusses attrition savings and possible local tax options

Flower Bluff ISD administrators outlined a preliminary FY26–27 budget picture at the June 4 board workshop, warning of a projected shortfall driven primarily by decreased revenue associated with enrollment trends and property-tax factors.

Tommy, the district presenter, said the district budgeted about $59.9 million for FY25–26 and had realized roughly $55.5 million to date. He said the district still expects some state payments — including final Teacher Incentive Allotment funds — and estimated about $5.4 million could still be due from the state. On the expenditure side, the district reported it was at about 67.9% of the annual budget through eight months, slightly above the 66.7% pro rata point on the fiscal year.

Officials identified three primary revenue pressures: (1) a statewide decline in school enrollment, (2) local enrollment and transfer trends that have not replaced lost students, and (3) a large increase in homestead exemptions (about 1,061 additional homesteads, which the presenter said attributed to roughly $300 million in homestead valuation change). Tommy said those factors combined in the district’s scenario to create a roughly $2.4 million deficit under a conservative projection for the 2026–27 year.

To address the gap, the administration said it has reduced positions through attrition and restructuring (22 positions closed so far, producing about $1.5 million in ongoing savings) and will continue strategic staffing reviews. "We have been able to save about $1.5 million by attrition just in general," the presenter said. Board members and staff discussed operational efficiencies, potential savings in water and check-run timing, and longer-term revenue options.

One of the revenue options discussed was asking voters for additional local tax pennies on the M-side (so-called golden and copper pennies) that would increase local revenue and in the case of the golden pennies carry a state match. Staff said three additional 'golden pennies' could generate roughly $2.83–3.0 million annually for the district but acknowledged that asking taxpayers for additional pennies in close succession to the bond would be politically sensitive. "Three additional pennies would be $5 additional in tax per month for the average homeowner in Flower Bluff," one presenter summarized.

Administrators also noted an active transfer enrollment push (around 830 transfers currently registered for fall at the time of the meeting) and said the district would continue outreach to raise average daily attendance (ADA) where possible. The board directed staff to continue strategic staffing, bring further details on health insurance and debt service, and reconvene budget workshops in July/August to finalize figures after property values are certified.