Godley ISD school board trustees heard preliminary information on the 2024-25 budget at the monthly meeting on July 29, 2024, at Godley High School.

Chief Financial Officer Spencer Davis led the board through the upcoming budget analysis, starting with an overview of school funding through property values, tax rates and student attendance.  

Davis noted that state funding has remained stagnant at 2019 levels approved by the Texas Legislature, while the local tax rate has decreased more than 12% over the same time period.  Without state funding increases, all school districts are impacted and must reduce expenditures or staffing or utilize district reserves.  Districts are facing payroll costs while also managing steep increases in transportation, insurance and utility expenditures.

Local appraisal districts have submitted certified property values, with an increase of 9% over the previous year.  A small number of residential homes are continuing through the appraisal protest process, and that could impact the final taxable value for the school district.

Davis reported that mandatory tax compression will likely result in a slight decrease in the district’s maintenance and operation tax rate from $0.6192 to $0.6169 per $100 of property valuation.  Combined with the $0.50 interest and sinking tax rate for debt service, the total estimated tax rate would be $1.2869 per $100 of property valuation.

Financial advisors are recommending a refinance opportunity for 2015 bonds that is scheduled for later in 2024.  The lower rate will save taxpayers about $892,000 in interest costs over the life of the bond.

Also discussed was the school district’s planned move to change the fiscal year to July-June.  During the transition, the 2024-25 budget will cover only September-June, so that the 2025-26 budget will be the first under the new schedule.  During the shortened fiscal year, the district will realize 10 months worth of expenditures and 11 months worth of revenue.

Board members approved an increase in child nutrition meal prices for the upcoming school year.  Elementary lunches will increase from $2.75 to $3.10, while middle school and high school lunches will increase from $3.25 to $3.60.  Breakfast prices are unchanged.  The district last increased student meal prices in the 2017-18 school year.

Trustees conducted a second review of possible local policy changes in TASB Policy Update 123 as recommended by the Texas Association of School Boards. The board will consider the policy recommendations at a future meeting.

Reports to the board included:

• Facility progress was presented by Satterfield & Pontikes Construction Company regarding Phase 2 projects at GHS including The WILD career and technical education center and competition gymnasium. In addition, REEDER Construction reported on Phase 3 construction for the high school’s fine arts wing.

The board approved minutes from a recent meeting as well as financial and tax reports, budget amendments, additions to purchasing cooperatives, and an amendment to a communications system agreement with Johnson County.

School trustees will hold a budget workshop on Monday, Aug. 12 and have their next regularly scheduled board meeting on Monday, Aug. 26.