As you begin thinking about what the future may hold for the next school year and what budget assumptions you should make, here are just a few things to consider:
Even without a special session, cuts are still possible during the 2020-21 school year.
While we hope this is not the case, please keep in mind that it is possible that the Texas Legislature could convene in January 2021 and adopt a supplemental appropriations bill that implements cuts to the school year/budget year already underway. State leaders are already calling for state agencies to cut sizable percentages of their budgets during FY 21, much less the cuts they may call for in FY 22 and beyond. Prepare your budget while keeping in mind that mid-year cuts are possible.
Be wary of treating federal dollars as "new money."
Regardless of when your district may receive federal dollars under the CARES Act, please keep in mind that we don't yet know how that will all play out. As we have seen done in the past, the state could adopt a supplemental appropriations act that makes it so the federal dollars schools receive under the CARES Act are not new dollars, but a method of finance for the state to use to fund their share of funding for schools. That translates into less cuts than schools would otherwise experience, but those funds would not be "new money" to spend above budgeted amounts.
Your attendance rate could be lower next year.
We know how attendance will be counted for the remainder of this school year, but we don't know if all students will return next year after this home school experiment. And even students who do return may be more likely to stay at home more days due to fear or heath concerns. We don't know that the school year we hope to kick-off in the fall will be a "normal" school year unaffected by COVID-19.
Your tax collection rate may be lower than usual.
While the legal standard is that property values be based on the value as of January 1, 2020, it's likely we will see an increase in protests and an increase of those who can't or won't pay their taxes on schedule. This could have an impact on your recapture and your cash flow.
Attempt to make shallow cuts over time, rather than deeper, more hurtful, cuts when required.
A lean budget now that helps to build a healthy fund balance for use during the 2021-22 school year and beyond would be prudent. Due to years of under-funding, this will be challenging, but necessary.
