Denton ISD has been operating at a budget deficit since the 2023-24 school year. At the present, the district has whittled a $33 million deficit to $19 million through a menu of cost-saving measures.
The school district gave $10 million in raises in 2023, in part because state education officials got assurances from state lawmakers that the 88th Legislature would put $4 billion into public education. That didn’t happen.
While the district has seen the cost of utilities go up over the last year or so — which is to be expected as the district builds and opens new schools at a fast clip — as well as property insurance rates, Denton ISD has seen an impact in four spending areas:
- Prekindergarten costs: The school district is legally required to provide full-day kindergarten. Administrators and teachers say the format pays off for children’s educational attainment. However, the district is only funded for half-day kindergarten classes. Since 2016, the number of kindergarten student has grown steadily. In 2023-24, kindergarten classes cost $11 million, and the district received an early education allotment — federal dollars — of $4 million. The district faced a deficit of $2.4 million.
- Special education costs: The Individuals with Disabilities Education Act requires public schools to provide certain services and protections to students designated as special education pupils. Those services cost Denton ISD about $52 million. The district does have several funding streams to cover those expenses: state and federal grants and weighted funding from Austin. Those sources cover $42.2 million, leaving the district on the hook for an additional $10 million.
- Transportation costs: The state doesn’t require Texas schools to provide transportation to every student, but students who live more than 2 miles from their campus can take a district bus. Currently, bus service costs Denton ISD $10 million. The district gets $2.1 million in funding, leaving a $7.4 million gap.
- Safety and security costs: Most Texas school officials and communities are in favor of state-mandated security improvements, given the rise in school shootings since the 1970s
- . However, those additions — in the form of armed security officers on all Texas public school campuses and increased building security — have come with a hefty price tag, even with grants from Austin. Denton ISD received just under $1 million in grant funding to cover $5.4 million in additional security costs. The district is left with a $4.4 million gap.
In spite of the budget deficit, the Denton school board recently dropped the total tax rate. Board members adopted the total tax rate of $1.1569 per $100 of property valuation for 2024-25.
Since 2018, the district has decreased its tax rate by more than 38 cents. Compared to the district’s tax rate of $1.54 from six years ago, the $1.1569 tax rate for 2024-25 will save the average homeowner $1,782 per year, based on Denton ISD’s median home price of about $465,000.
In addition to lowering the total tax rate over the past six years, Denton ISD has saved a combined $274.4 million by refinancing bonds since 2005. The district is in good fiscal standing, receiving the highest possible Financial Integrity Rating System of Texas rating by the Texas Education Agency for 21 consecutive years.
So what can Denton ISD do? A funding increase is a priority for officials, and with the 89th Texas Legislature set to begin in January, district leaders will ask lawmakers who serve the residents within its 18 cities to increase per-pupil funding. Texas ranks in the bottom 10 in per-pupil spending, according to the National Education Agency.