August 6, 2019 — Regular Meeting
Conroe ISD Board Meeting — 2019-08-06
Regular Meeting — Unofficial Notes
Based on auto-generated transcript. Not an official record.
Generated 2026-03-27 22:04 UTC
Unofficial Meeting Notes
Conroe Independent School District – Budget Hearing
August 6, 2019 | Regular Meeting
These are unofficial notes based on an auto-generated transcript and may contain errors or omissions.
Overview
The meeting was a public budget hearing for the proposed 2019-2020 CISD budget. Chief Financial Officer Darrin Rice presented the budget, followed by public comment. No formal votes were taken at this hearing. A second public hearing and formal adoption of the budget and tax rate are scheduled for August 20, 2019.
Budget Presentation by Darrin Rice
Financial Highlights (Current Year Achievements)
- CISD received Transparency Stars from the State Comptroller's Office for finances, debt obligations, and contracts/procurement
- Named a Texas Smart Schools Five-Star District for 10 consecutive years — one of only two districts out of 1,100+ statewide to achieve this
- Ranked 2nd in the state by the Education Resource Group (ERG) among the 200 largest districts for academic and financial performance
- CISD spends $7,965 per student, which is $916 less than the state average ($8,881)
- If CISD spent at the state average, the budget would need to increase by $57.6 million
- 63.75% of the budget goes to instruction vs. 57.69% state average
- Central administration spending is less than half the state average
- CISD spends more than the state average on security and monitoring services
House Bill 3 (HB3) – Legislative Impact
Key provisions of HB3 ("The Texas Plan"):
- $5 billion in property tax relief
- $4.5 billion for education reform
- $2 billion for teacher pay
- $3.5 billion for recapture reduction
- Increased the basic allotment from $5,140 to $6,160 per ADA
- Requires full-day pre-kindergarten for eligible 4-year-olds (estimated cost to CISD: $5 million, not including facility needs)
- Moves to current-year property values for determining state funding
- Seven-cent compression on the Tier One M&O rate
- Prohibits school districts from transferring M&O surplus funds to buy down debt service tax rates (a practice CISD had previously used)
- Rice stated: "The state has essentially set our tax rate for us in this first year."
General Fund Balance
- 2008 fund balance: $76 million
- Projected 2019 fund balance: $139.6 million
Budget Objectives for 2019-2020
1. Meet needs for the new school year (opening Suchma Elementary, adding 11th grade at Grand Oaks High School, preparing for 1,350 new students)
2. Provide a competitive compensation plan
3. Prioritize safety and security
4. Establish a district-wide capital maintenance fund
Enrollment Data
- Projected enrollment: 64,187 students (increase of 1,350)
- ADA percentage: 94.0%
- Growth trend: approximately 1,500 students per year
Property Values
- Property values increased 6.56%, adding ~$2.34 billion
- Total property values: $38.1 billion
- Due to HB3's use of current-year values, the increase generates no additional M&O funding — increased local tax revenue is offset dollar-for-dollar by decreased state funding ($3.66 million offset)
Proposed Tax Rate
| Component | 2017-2018 | 2019-2020 Proposed |
|---|---|---|
| M&O Rate | $1.04 | $0.97 |
| Debt Service Rate | $0.24 | $0.265 |
| Total Tax Rate | $1.28 | $1.235 |
- Net effect: 4.5 cent tax decrease
- CISD will remain the second-lowest tax rate in the Greater Houston area
- 14.7 cents below the peer district average tax rate
- The debt service rate increased from $0.24 to $0.265 because the district can no longer transfer ~$10 million annually from M&O to buy down the debt service rate (prohibited by HB3)
Revenue Estimates
- Total estimated available new funding: $53.35 million (same whether AV growth is 5.5% or 6.56%)
- Investment income increased by $1 million
- TRS In-Kind funds: $5 million (accounting entry)
Salary Increases
- Teachers, librarians, counselors, nurses: 3.5% increase + $500 adjustment for 6+ years of experience (cost: $9.6 million)
- Pay Grade AE Levels 1-3: 3.5% raise
- Pay Grade AE Levels 4-10: 3% raise (cost: $1.75 million)
- Administrative/business: 3% raise (cost: $265,000)
- Admin support, instructional support, auxiliary, police (non-exempt): 3.5% raise
- Total salary increase cost: $14,046,000
- Beginning teacher salary: $55,500
- A board member asked about the state-mandated raise from HB3; Rice confirmed it was 2.5%, and CISD is providing above that amount
Personnel for Growth
- 153 new campus positions: 107 teachers, 10 administrators, 9 professionals, 27 paraprofessionals (cost: ~$9 million)
- 56.4 support positions (transportation, police, maintenance, custodial) (cost: $1.9 million)
- Total new positions: 209.4 | Total payroll additions: $10.98 million
Total Expenditure Increases
| Item | Amount |
|---|---|
| Personnel for growth | $10.98M |
| Salary increases | $14.05M |
| Potential employee retention stipend | $5.0M (~$625 per employee) |
| New HB3-required programs (Pre-K, CTE, bilingual, dyslexia, comp ed, safety) | Various |
| Other expenses (utilities, insurance, fuel, supplies) | $1.81M |
| TRS In-Kind | $5.0M |
| Total operating expenditures | $44.13M |
| Capital maintenance fund transfer | $10.0M |
| Total expenditures | $54.13M |
Proposed 2019-2020 Budget Summary
| | Amount |
|---|---|
| Projected Revenue | $555.62 million |
| Projected Expenditures | $549.58 million |
| Estimated Surplus | ~$6 million |
- Budget breakdown by category: Payroll 87.6%, Contracted services 5%, Supplies/materials 4.2%, Equipment/other 1.4%, Capital maintenance fund 1.8%
Proposed Use of Surplus
- Retain funds to support the 2020-2021 budget (which is currently projecting a $6.56 million deficit)
- 2020-2021 will include opening a new junior high school
- Any remaining funds to support the capital maintenance fund and unforeseen expenditures
Fund Balance Analysis
- Target: 25% of annual budget (~$137.4 million)
- Estimated unassigned fund balance at 8/31/19: $134.1 million (24.4%)
- Approximately $3.2 million short of the 25% target
- At the 20% level, approximately $24.2 million could be available toward a potential bond refund
Additional Information
- One cent tax increase on a $300,000 home equals $27.50
- Various reference documents available on the district website
Public Comments (4 speakers)
Randy Lewis Smith
- Expressed concern about being "over-appraised" and "over-taxed"
- Raised concerns about student safety, specifically referencing alleged sexual assault incidents at Woodlands High School, Oak Ridge High School, and a historical case at Conroe High School
- Urged the district to prioritize child protection and remove employees found to be predators
- Asked the district to find ways to cut the budget to help taxpayers
Eric Yollick (The Woodlands resident)
- Argued that despite the nominal tax rate decrease, the effective tax rate is actually increasing, meaning taxpayers will pay more
- Contended that nothing in HB3 prevents the district from using fund balance to pay down debt service — suggested the district examine its CAFR to identify eligible fund balance sources
- Criticized the board's budget review process, stating he has seen essentially the same presentation three times with no substantive board deliberation
- Urged the board to conduct line-by-line budget review similar to county government practices rather than simply accepting administration presentations
- Acknowledged positive interactions with several board members, Dr. Null, and Mr. Rice
Mark Wright
- Asked whether the board has discussed a tax rollback to deliver on property tax reform promises
- Raised the issue of redistricting, noting that over 100 teachers he's spoken with are in T-buildings (portable buildings) and have safety concerns, including locked-door inconveniences
- Thanked board member Dale Inman for listening to constituents
- Urged the board to adopt Inman's proposed amendment from the original bond as Proposition A, with remaining items as Proposition B
John Boucher (Oak Ridge North, Precinct 3)
- Supported teacher pay raises and expressed appreciation for HB3
- Expressed concern that the strategy appears to rely on escalating home appraisals as a tax multiplier combined with mega-bond issuances
- Criticized what he perceived as increasingly opulent school construction, calling for a "no-frills approach"
- Suggested spending priorities should focus on supporting teachers and addressing disruptive students rather than amenities like "AstroTurf and Airsoft Gun ranges"
- Stated that regardless of percentage comparisons, "if we're paying more money, it's more money"
Ellis Cussie
- Described a decade-long effort to obtain the district's Comprehensive Annual Financial Report (CAFR)
- Recounted difficulties in obtaining the document, including being initially given an abbreviated overview and being quoted ~$3,000 for a printed copy
- Eventually received it on disc for $15 but expressed frustration that the full report was not readily provided
- Stopped requesting it in recent years out of frustration
Board/Administration Response: A board member asked if the CAFR could be posted under the transparency section of the website. Both administration and other board members confirmed it is already posted and has been for years, accessible to anyone.
Key Takeaways
- No votes were taken — this was a public hearing only
- The proposed $549.58 million budget and $1.235 total tax rate (4.5 cent decrease) will come before the board for adoption on August 20, 2019, following a second public hearing
- HB3 significantly impacts the district's funding formula and tax rate structure, effectively setting the M&O rate and prohibiting M&O-to-debt-service transfers
- The district is providing salary increases above the state-mandated 2.5% minimum
- Multiple public commenters expressed concern about the effective tax burden increasing despite the nominal rate decrease
- Public commenters also raised concerns about student safety, budget transparency, school construction costs, and the depth of board budget deliberation
- The 2020-2021 budget is projected to have a $6.56 million deficit, which the district plans to cover with this year's surplus