MISTER CARTER and district staff told the board at a June 14 budget workshop that updated financial projections narrow the district’s adopted deficit and lay out options for using federal pandemic funds and proceeds from an upcoming bond sale.

The presentation showed a revenue forecast of about $235,000,000 and an expenditure forecast “at 248 and change,” which MISTER CARTER said equates to “around a $12,900,000 forecasted deficit.” He added that a roughly $2,200,000 shortfall in the district’s health insurance fund brings the current forecast to “just over a $15,000,000 deficit” versus a $25,100,000 deficit the board adopted earlier in the year.

That projection produces an estimated ending general‑fund balance of about $75,000,000, down from a beginning balance near $90,000,000, Carter said. He emphasized the board’s target for reserves: “When you’re a property wealthy district … you need to be at least 3 and a half months,” he said, explaining that Northwest ISD’s largely property‑tax revenue mix makes higher reserves prudent.

Why it matters: the forecast shapes the district’s final amendment on June 28 and the 2021–22 budget adoption later in the summer. Certified property values were expected June 25, and tax‑rate adoption is scheduled for the district’s August meeting, both of which affect revenue estimates.

Two‑year personnel plan and program reductions

Carter and other staff outlined a multi‑part plan designed to close a $17.5 million gap over two years while avoiding layoffs. The district has identified roughly $2,300,000 in shared reductions across athletic and fine arts staffing and non‑personnel budgets (elementary PE, art, music, assistant coaches, supplies) and expects program reductions of about $2,000,000 in those same areas. The group also cited $875,000 in attrition savings already captured and other contract and insurance changes implemented earlier in the year.

“Those top pieces … are the most difficult pieces to manage because it deals with staff,” Carter said, noting the plan relies on attrition and natural vacancies rather than involuntary reductions. He said the administration expects the staffing and program circles to “turn green” by the end of the next fiscal year as resignations and retirements occur and positions are not refilled in like‑for‑like fashion.

ESSER 2 and ESSER 3 federal funds

Staff reviewed the district’s federal allocations and the tradeoffs between using ESSER funds for one‑time stipends versus recurring salary increases. Carter and other administrators said Northwest ISD’s current ESSER allocations are approximately $3,200,000 (ESSER 2) and $7,400,000 (ESSER 3). They described ESSER 3 as a larger, multi‑year bucket with roughly two‑thirds immediately available and one‑third pending the state’s federal application.

Administrators said ESSER funds can be used to fund additional short‑term positions targeting learning loss (interventionists, counselors, SEL staff) or to reclassify existing positions into federal grant codes to temporarily relieve pressure on the general fund. They also said ESSER allows a one‑time stipend for employees but not permanent salary schedule increases: “It can’t really be an incentive. It cannot be a pay raise attached to your hiring or permanent schedules, but you can do a 1 time stipend,” Carter said.

Board members discussed amounts and timing for a possible one‑time payment. District staff cited examples used in peer districts: a $500 one‑time stipend was noted as common and, with Northwest ISD’s planned headcount, would total roughly $1,500,000. Carter said a 1% permanent salary increase would cost “about 1.6 or so” million based on last year’s personnel budget of roughly $193,000,000 and would be a recurring obligation.

Bond sale, tax calendar and next steps

Finance staff said the district completed due‑diligence rating calls with Fitch and Moody’s and expected ratings and a permanent school‑fund guarantee from the State of Texas by the Monday after the workshop; staff planned to price the bond sale to market June 24 or 25. Carter said typical funding lags about 30–40 days after sale.

The board was also told that the final amended current‑year budget will be brought on June 28 (the amendment primarily reflects June payroll and any functional category adjustments) and that final adoption of the tax rate is scheduled for the board’s August meeting, after certified values are posted.

Ending note

Staff said they will continue to refine the forecast in May and June, load the final personnel file into the budget model, finalize how ESSER 3 dollars will be spent, and present a sustainability plan to the board by September that explains how recurring costs will be covered going forward.