April 4, 2023 — Regular Meeting

Name: April 4, 2023 — Regular Meeting
Start: 2023-04-04

Conroe Independent School District Board of Trustees — Regular Meeting

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Conroe ISD Board Meeting — 2023-04-04

Regular Meeting — Unofficial Notes

Based on auto-generated transcript. Not an official record.

Generated 2026-03-28 15:26 UTC

Unofficial Meeting Notes

Conroe ISD Board of Trustees – Board Workshop

April 4, 2023

These are unofficial notes based on an auto-generated transcript and may contain errors or omissions.

Citizens Participation

No members of the public signed up to speak.

Superintendent's Update (Dr. Null)

Job Fair Results

1,134 registrants with 800 in attendance — described as a strong number compared to area districts
25 letters of commitment were signed on the day of the job fair, enabled by the board's recent policy change allowing faster hiring action
594 jobs currently posted for next year; the district expects to hire over 1,000 people by end of summer
Principals reported the expedited hiring authority made a significant difference in competing for talent; principals "actually applauded" when informed of the change
The faster process also helps with "domino effect" vacancies created by internal transfers

Item 2: Preliminary 2023-2024 Budget Overview

Presented by: Darren Rice (CFO) and Karen Garza

District Financial Awards

CISD was the first district in Texas to earn transparency awards from the State Comptroller's Office (13 consecutive years)
Texas Smart Schools: One of only two ISDs (with Cy-Fair) out of 1,200+ to receive the highest five-star rating for all years
New award: TASBO Award for Excellence in Financial Management — CISD is one of only 23 districts statewide recognized

Peer District Comparison

Instruction spending: 63.22% of operating expenditures (middle of peer group)
Transportation: Highest among peers due to geographic size (348 sq mi) and transporting 55% of students
General Administration: Lowest expenditures among peers
Facilities Maintenance & Operations: Highest — attributed to maintenance items cut from the last bond referendum being funded from the general fund
Operating expenditures per student: $8,748 — one of the lowest among peers
Golden/Copper Pennies: CISD and Klein access only 5 cents; peers like Fort Bend (~11¢) and Katy (~16¢) access more

Discussion: Voter-Approval Tax Rate Election (VATRE)

Board members asked why CISD doesn't access more golden pennies
Dr. Null explained it would require a VATRE, which is difficult to explain to voters compared to tangible bond items
Recent local VATRE failures: Magnolia and Klein both failed ~4-5 years ago
College Station recently passed one tied specifically to a 4% raise for all staff (2 pennies)
Dr. Null suggested a VATRE could be considered in the future, potentially after a November bond election, with clear messaging tied to employee compensation

Legislative Update

Property Tax Relief Bills

House approach (HB): Additional 15¢ M&O compression + 5% appraisal cap on all real property ($17.3B cost)
Senate approach (SB): 7¢ additional compression + homestead exemption increase from $40K to $70K + $30K over-65/disabled exemption increase ($16.5B cost)

Key Bills Being Tracked

HB 100 (King):

$50 increase to basic allotment (~$4.5M for CISD)
50% must go to teacher raises (equates to ~1% raise for teachers only)
Transportation allotment increase from $1.00 to $1.54/mile (~$2.5M for CISD)

HB 11 (Dutton):

Teacher residency partnership program
Expands Pre-K eligibility to children of teachers (Dr. Null noted space constraints)
Grant program for TRS costs related to retired teachers
Teacher Incentive Allotment enhancements

HB 5170 (Dutton):

Removes appropriation limits on fast growth allotment (~$5M additional revenue)
$50 basic allotment increase with inflation factor (TBD)

SB 8 — Vouchers:

Dr. Null stated firmly: "There is nothing positive in a voucher system for Conroe ISD."
He argued it would create a parallel system with zero accountability to taxpayers and zero state mandates, calling it "completely unfair"
Expressed confidence in CISD's schools and programs but insisted competition must be fair

⚠️ SB 9 (Creighton) — FLAGGED AS MOST CONCERNING:

Districts over 20,000 students: teachers receive $2,000 raise
Districts under 20,000 students: teachers receive $6,000 raise
Impact on CISD: Every teacher in Montgomery County would get $6,000 EXCEPT Conroe ISD teachers ($2,000 only)
CISD would immediately become the lowest-paid district in Montgomery County
No funding mechanism identified; current cost estimate: $2 billion
Dr. Null described this as "the most dangerous bill" for CISD and more immediately harmful than voucher legislation
He has engaged directly with Senator Creighton and his staff, offering alternatives:

- Increase basic allotment substantially with 80% mandated for teacher raises

- Move funding from ADA to enrollment-based

- Apply population-based county caps instead of district-size thresholds

Board members expressed serious concern; noted CISD has ~4,000 non-teacher employees who would receive nothing under this bill
No companion bill identified in the House
Dr. Null confirmed he informed Senator Creighton's office this would be presented publicly

School Safety Bills (189 bills being considered)

Current safety allotment: $9.72/ADA (~$650K for CISD)
Proposals range from $10 to $100/ADA increases
HB 3 (Burroughs): $15K per campus (~$1M additional); requires armed school safety officer at every campus during school hours — would cost ~$3M and require 38 additional officers
Concerns raised about officer availability and proper training for school environments
Brief discussion of school chaplain bills (SB 7623) and school marshal programs

Budget Goals & Challenges

Objectives:

Open Hines Elementary, new Moorhead Junior High, and retrofit Veterans Memorial Intermediate
Competitive compensation plan
Safe learning environment
Absorb ESSER positions into general fund

Challenges:

Legislative uncertainty
Unprecedented growth: ~2,600 students/year
No funding mechanism for raises or inflation
ESSER funding cliff: 225 positions ($16M) currently ESSER-funded
No funding mechanism for employee retention stipend

Fund Balance

2022 budget: ~$620M
Projected unassigned fund balance at 8/31/23: $176M
20% target: ~$124M
Board previously designated $18.8M for bond contingency (unused) and $30M for land purchases
Actual capacity: ~$3.4M
If bond passes, reimbursement resolution could return $30M to fund balance
Extensive board discussion about the $30M land decision and its impact on employee compensation options

Attendance & Enrollment Data

Projected 2023-24 enrollment: 73,394 (growth of 2,600)
ADA estimate: 92.5% of enrollment
Pre-COVID ADA was ~94%; each 1% = ~$4M in revenue
Current enrollment as of 4/4/23: 71,440 (up 21 since 3/29)
Growth is coming from everywhere — local, out of state, international
Significant discussion about build-to-rent communities driving growth, particularly around Hope Elementary
Discussion about developers and land costs; CISD struggles to get favorable pricing

Property Values & Funding Formula

Using 10% growth estimate; total certified value projected at $57.3B
Key message repeatedly emphasized: Increased property values generate NO net new revenue for the general fund due to state funding formula — state reduces its share dollar for dollar
This slide has been shared with realtors, bond committee, and community publications
Board members encouraged continued wide communication of this fact

Tax Rate

Current total rate: $1.1146 (M&O: $0.8546; Debt Service: $0.26)
Rate has decreased 16.54 cents since 2018-19
CISD is the second-lowest tax rate in the greater Houston area
Current law projects additional ~5.5¢ compression; pending legislation could add 7-20¢ more
Discussion of "no new revenue" rate — would result in loss of golden pennies (~$45M+) and additional tier 2 penalties (~$10M+), totaling $55M+ in losses

Revenue & Expenditure Estimates

Revenue increase: $48.35M

Local revenue (AV growth): $13.1M (offset by $13.1M state reduction)
State funding increase (enrollment + golden penny yield): $43.6M
Interest income increase: $3M
TRS on-behalf (accounting entry): $1.75M

Expenditure increase: $48.35M

Additional personnel: 437.3 FTEs for growth ($28.4M) + 107 FTEs district support ($6.3M) = 544.3 total FTEs ($34.7M)
Key staffing changes:

- K-4 student-teacher ratio reduced from 23:1 to 22:1 ($3M)

- Two instructional coaches per campus for reading/math ($4.5M net)

- Associate principal positions added at junior highs

- Campus administrator and counselor ratio changes ($3.2M + $1.5M)

- Special education: 27 district positions, 35 teaching units, 30 paraprofessional units, 18 behavioral units, 5 diagnosticians ($5M total)

- 46 auxiliary positions (bus drivers, custodians, maintenance)

- 225 ESSER positions absorbed (~$16M)

Reading academy stipends, summer school, teacher pipeline (from ESSER): $2.1M
Inflation adjustment: $3.5M
Portable buildings: $3M
Software costs: $1M
Other (utilities, fuel, insurance, supplies): $2.3M
TRS on-behalf: $1.75M

Result: Balanced budget at $671.65M — but with NO employee raises included

Compensation Discussion

TASBO compensation study completed; results to be shared with board
Raise scenarios presented:

- 2% raise: ~$11.5M (all employees)

- 5% raise: ~$24.4M (all employees)

Historical raises averaged 2-2.5%, with some years reaching 3.5-4%
Retention stipend ($1,500/employee: $500 fall, $1,000 spring): ~$13.25M — NOT included in current budget
Board expressed significant concern about inability to fund raises without legislative action
Discussion about the difference between salary increases (compounding, permanent) vs. retention stipends (one-time)
Strategy: Release positions early so principals can hire; any additional state funding can be directed entirely to raises

Benefits Plan Design

No premium increases recommended for 2023-24
No plan design changes
Self-funded insurance fund balance: $6.2M (expected to increase)
Current year performance through February: revenues exceed expenses by $1.8M
PBM change (approved last month) to Blue Cross Blue Shield saved $2M+
Gallagher/BCBS recommended 7% increase (~$365K) but district recommends status quo given strong plan performance and fund balance
Formal approval to come at April board meeting

Budget Timeline

May 2, 2023: Board workshop (if needed based on legislative action)
June 6, 2023: Board workshop with more complete budget
July 12: Presentation to District-Level Planning & Decision-Making Committee
July 18: Board meeting for committee recommendation
August 1: First public hearing on budget and tax rate
August 15: Second public hearing; board adoption of budget and tax rate

Item 3: Bond Planning Committee Update

Presented by: Dr. Null, Sarah (Bond Committee Coordinator), and Mr. McCord (Operations)

Committee Process

Committee members have been highly engaged; attendance averaging ~100-110 per meeting
Voting membership: 148 (6 removed for non-attendance)
Consensus threshold set at 66% by the committee
School tours being offered to committee members
All materials available on district website

Meeting 5: Transportation & Safety/Security (March 9 at Oak Ridge HS)

Transportation:

348 square miles; 6.4M annual miles; 55% of enrollment transported
3rd highest % of enrollment transported among 24 largest TX districts
Over 1/3 of bus fleet exceeds 12-15 year life expectancy
Nearly 2/3 will be at upper end of life expectancy within 4 years
New bus cost: $131K (77-passenger); $118K (special needs)
12 new buses just arrived (ordered October 2021)
Bus driver attendance at best levels in 4 years
Bus parking expansion costs:

- Conroe Transportation Center: 40 spaces

- Oak Ridge Transportation Center: 80 spaces (expensive due to underground detention)

- East County Transportation Center: 100 spaces

Safety & Security:

Committee expressed strong interest; no specific dollar figure yet
Wide flexibility in what can be purchased with bond safety funds
Spending decisions would go through district safety committee, then board approval

Meeting 6: Physical & Technology Infrastructure

Physical Infrastructure:

~25% of chillers exceed life expectancy
~50% of boilers exceed life expectancy
~25% of air handlers exceed life expectancy
Over 50% of kitchen coolers and freezers exceed life expectancy
~25% of 198 roof sections exceed life expectancy
Total district infrastructure need: $222M

Technology Infrastructure:

~$69M in needs (infrastructure/equipment only, not devices)
Critical for data safety/security and daily operations
Technology was cut from 2019 bond, creating ongoing deficit
Current annual technology funding: ~$5M (capital maintenance fund + previous bond allocation)

Meetings 6-7: Committee Package Building Exercise

Committee members worked individually and in table groups to build bond packages using provided worksheets. They are now voting on categories.

Proposed Bond Propositions Structure

Proposition A (Core Package):

New Schools: Would exceed $1 billion alone; committee ranking exercise determining how many schools (ranges from 6-10 discussed)
Additions: Various options; committee still refining
Major Renovations: Including Woodlands HS (largest), Oak Ridge HS phases 2-3, Washington HS master plan (near-rebuild)
Infrastructure: $222M baseline strongly supported; committee understands consequences of cutting this category (as happened in 2019 bond)
Safety & Security: Range discussed from $25-35M (one group proposed $100M); state funding expected to supplement
Land: $50M floor ($36M already committed); committee deciding how far into future to fund
Transportation: Buses and center expansions
Technology Infrastructure: Strong consensus around $70M (full need)

Proposition B: Technology devices (required by law to be separate)

Proposition C (potential): Elementary gyms (~$5M each) and playgrounds (~$250K+ each) — committee chose to separate from Prop A to protect core package

Proposition D (potential): Career & Technical Education programs

Proposition E (potential): Athletics — including natatorium renovation and potential additional pool space

Notable Discussion Points

Dr. Null emphasized repeatedly that Prop A must be protected — should contain only clear necessities
Board member raised concern about natatorium capacity and suggested including a practice pool at the planned new high school to reduce busing and free up space at the main natatorium; Dr. Null agreed to get cost estimates
Concern expressed that too many propositions could hurt passage rates (historically A and B pass well; C and beyond see declining support)
Board discussed whether a pool would be better in Prop A (as essential facility) vs. Prop E (athletics, more vulnerable)

Bond Committee Timeline

May 11: Expected to have draft package largely finalized
Summer: Public feedback period
July: Return to committee with public feedback for potential adjustments
August (first or third week): Final package presented to Board of Trustees
August 21: Deadline to call bond election for November ballot
Board has flexibility to modify the committee's recommendation

Other Notable Items

Happy birthday acknowledged for board member Carrie Galatas
No votes were taken (workshop/informational session only)
Board members who attended recent bond committee meetings: Trustee Dunham (Oak Ridge) and Trustee Nelson (at CJHS)

Meeting Adjourned

Board wished attendees a happy Easter.