Clear Creek ISD's financial reserves could be depleted by fiscal year 2028-29, giving trustees less than two weeks to decide whether to ask voters to approve a tax rate increase that would appear on the November ballot.

The district presented updated budget projections at its Friday, July 31 board meeting showing a $24.1 million shortfall, Community Impact reported. The board must vote by Aug. 17 whether to order a voter-approval tax rate election, known as a VATRE, that would appear on the November ballot.

If called, the VATRE would seek $19.1 million to offset the gap between what the district takes in and what it spends. CCISD anticipates $404.4 million in revenues against $424.2 million in expenses for FY 2026-27, according to district budget documents.

What's driving the shortfall

Enrollment has dropped roughly 8.5% since 2019, costing the district about $28 million annually in lost state funding. At the same time, special education enrollment has risen more than 38%, adding $16.3 million in expenses. The state's basic per-student allotment was frozen at $6,160 for five years before rising to $6,215 for 2025-26. CFO Alice Benzaia told trustees at a July 13 workshop that inflation increased 20% from 2019 to 2026.

Superintendent Karen Engle said at that same workshop that "the district was in a fast-growth environment, but then had a sharp decline after COVID-19."

The district has already cut 70 positions for the 2026-27 school year and passed a VATRE in November 2023 that generates $18 million annually. Unfunded state mandates add further pressure: Senate Bill 546 requires three-point seat belts on all district buses by Sept. 1, 2029, at an estimated cost exceeding $5.3 million.

Smaller raises reflect the squeeze

The board unanimously approved a compensation plan July 27 that gives teachers a 1% raise plus step adjustments, down from the 3% all employees received in FY 2025-26. Paraprofessionals and auxiliary staff will get 2%. Assistant Superintendent of Human Resources Robert Branch acknowledged at that meeting that the increases do not fully offset inflation.

Board member Arturo Sanchez urged residents at the July 27 meeting to press state lawmakers for better school funding. "We really invite our community to engage in discussions with their state elected officials," Sanchez said. "While we all appreciate lower taxes ... we also appreciate an environment where students can learn and thrive."

Key dates and how to weigh in

The deadline for the district to publish notice of a public hearing on the VATRE is Friday, Aug. 7. If the board calls the election, a public hearing on the adopted tax rate and budget must be held by Aug. 17. If trustees decide against a VATRE, they will adopt the budget and tax rate at the Aug. 24 meeting.

The exact impact on individual homeowners' tax bills has not been released. The district's current tax rate is $0.963 per $100 of assessed home value, unchanged for two years.

Board meetings are held at the CCISD boardroom, 2425 E. Main St., League City.