Clear Creek ISD's board of trustees unanimously approved a $432 million budget for fiscal year 2026-27 on Monday, Aug. 24, locking in a $22.8 million shortfall that the district will cover by drawing down its savings, according to Community Impact.
The vote came after a public hearing at the district's boardroom in League City. Homeowners will see no change on their tax bills: the district is projecting a flat rate of $0.969 per $100 of assessed value, unchanged from the prior year. The board will formally adopt that rate at its Monday, Sept. 28 meeting.
Where the shortfall comes from
Chief Financial Officer Alice Benzaia has attributed the gap primarily 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 and now sits at about 39,684.
To plug the hole, CCISD will tap its $39 million capital contingency fund. The district also eliminated 77 positions through attrition, saving $5 million, but those savings were offset by a $7.5 million employee salary increase and a $900,000 bump in the Galveston County security contract.
A $4 million-plus state allotment for coastal Texas school districts will help offset rising property insurance costs.
What comes next
The budget math gets tighter from here. Debt service reserves are projected to fall from 34% to the board-mandated minimum of 10% by fiscal year 2029-30. At an Aug. 17 budget presentation, Benzaia warned that "the district's ability to pass bonds without increasing the tax rate is likely coming to an end," according to Community Impact's reporting.
By FY 2027-28, the district could face a $23.5 million shortfall that would deplete its capital and contingency funds. District officials have described the situation as a "two-year runway" and are considering a $19.1 million voter-approval tax rate election in fall 2027.
Trustee Arturo Sanchez said at a July 13 board workshop that stagnant state funding threatens the programs that distinguish the district. "We are looking at potentially negatively impacting things that set us apart that make our district attractive," Sanchez said, according to Community Impact's Aug. 14 report.
Other action items
The consent agenda included approval of an agreement between Clear Creek ISD and Friendswood ISD to provide a Disciplinary Alternative Education Program at Clear Path Alternative School in Webster. Trustees also took up a first reading of policy revisions for the Clear Tech Virtual Program, the district's new online learning option launched in partnership with Texas Tech University for the 2026-27 school year. No final action was taken on that policy; a second reading is expected at a future meeting.
The board's next key date is Monday, Sept. 28, when trustees will formally set the tax rate.
