Clear Creek ISD taxpayers won't see a rate increase this year. But the district's chief financial officer told trustees that era is ending.
At the board's Aug. 17 meeting, CFO Alice Benzaia presented a proposed $432 million budget for fiscal year 2026-27 that carries a $22.8 million shortfall. The total tax rate will hold flat at $0.969 per $100 of assessed property value, unchanged from last year. But debt service reserves are projected to fall from 34% to the board-mandated floor of 10% by fiscal year 2029-30, according to Community Impact's reporting.
"The district's ability to pass bonds without increasing the tax rate is likely coming to an end," Benzaia told the board.
That timeline means future bond elections for school construction or major renovations would likely require voters to approve a higher rate, not just maintain the current one.
Where the shortfall comes from
Benzaia attributed the $22.8 million gap to a $16 million drop in state and local funding driven by the loss of roughly 1,000 students. District enrollment has fallen more than 6% since the 2019-20 school year, according to Texas Education Agency data.
To cover the gap, CCISD plans to draw from its $39 million capital contingency fund. The district also eliminated 77 positions through attrition, saving $5 million. Those savings were offset by a $7.5 million employee salary increase and a $900,000 bump in the Galveston County security contract.
One bright spot: the state awarded CCISD more than $4 million through a coastal allotment designated for property insurance costs, a significant expense for Gulf Coast districts.
Unfunded mandates add pressure
The budget squeeze extends beyond enrollment. Board President Jonathan Cottrell highlighted the cost of unfunded state mandates at the board's July 31 meeting, pointing to Senate Bill 546, which requires district buses to carry three-point seat belts by Sept. 1, 2029. The estimated price tag for CCISD: more than $5.3 million.
"[The state legislature] is telling us we have to do these things, but [they're] not giving us money to do so. That money has to come from somewhere," Cottrell said at the July 31 meeting.
What's next for taxpayers
CCISD will hold a public hearing on the proposed budget and tax rate on Monday, Aug. 24. The board of trustees is scheduled to formally adopt the rate at its Sept. 28 meeting.
The district has also been evaluating a potential future voter-approval tax rate election for nine additional tax pennies designated for enrichment programs, which would generate approximately $20 million in additional revenue. A VATRE passed in November 2023 brought in $18 million.
