SBISD Receives Very Bad News on the Budget for 2007-2008

Already anticipating a budget deficit in excess of $2 million for 2006-2007, Dr. Klussmann and his staff gave the Board a dismal projection tonight for 2007-2008.  House Bill 1, passed in the Special Session, was represented by the State's Legislative Budget Board as holding harmless all districts so revenue would be protected by the State.  However, it now appears that buried in the 167 page bill are some provisions that will cost Spring Branch, and many other districts, millions of dollars.  The biggest cost drivers:

    1.    In addition to the $2,000 pay raise which is funded by the State, districts are required to give a "step" increase to all employees on the State salary schedule.  This unfunded mandate by the State will cost Spring Branch almost $2 million.

    2.    The "hold harmless" provisions contained in the bill fall $3.25 million short of a true hold harmless.

    3.    House bill 1 contains no increases in funding for inflation.  Inflationary costs are anticipated to result in increased expenses of $7 million for 2007-2008.

You can view the budget summary here (.pdf). 

During the Special Session, I discussed House Bill 1 with our legislative delegation.  They were assured that Spring Branch would be fully held harmless by the bill.  We are continuing to work with our legislators to address the school funding issues and these apparent unknowns contained in House Bill 1.