The Amarillo Independent School District Board of Trustees reviewed the district’s proposed 2026–2027 budget during its regular Monday meeting, receiving a detailed financial presentation that highlighted ongoing enrollment declines, shifting state funding formulas, and a set of proposed cost-saving measures paired with targeted pay increases for employees across the district.
Chief Financial Officer Daniel West outlined the district’s financial outlook, emphasizing that declining student enrollment continues to be the central factor shaping Amarillo ISD’s revenue challenges. He explained that state funding is closely tied to average daily attendance, meaning fewer students in seats directly translates into reduced state allocations. At the same time, he noted that the district is attempting to maintain stability through strategic reductions in expenditures while still prioritizing staff compensation increases.
Trustees also heard from district leadership, including Superintendent Deidre Parish and members of the administration team, as they worked through the implications of a tightening financial environment that mirrors broader statewide trends affecting multiple Texas school systems.
Long-Term Enrollment Decline Shapes Budget Outlook
A major focus of the presentation was the continued decline in student enrollment across Amarillo ISD. According to district data presented by West, enrollment has fallen by 5,357 students since the district’s peak during the 2015–2016 school year. That sustained decrease has had a compounding effect on the district’s funding base, as fewer students lead to reduced state revenue over time.
For the current school year, Amarillo ISD reports an average daily attendance of approximately 25,441 students. West indicated that this figure is expected to remain relatively stable through the end of the year, pending final attendance calculations after the school year concludes.
Looking ahead to the 2026–2027 school year, the district is projecting a snapshot enrollment of 27,875 students, along with an estimated average daily attendance of 25,129 students. The snapshot figure, taken annually in October, serves as a key reference point for comparing enrollment trends year over year and is used in reporting to the state.
District officials explained that the timing of snapshot day is intentional, occurring during a relatively stable period in the academic calendar when enrollment fluctuations caused by extracurricular events, holidays, and seasonal attendance variations are minimized.
During earlier discussions at a special board meeting on April 20, district leaders clarified the distinction between snapshot enrollment and average daily attendance. They noted that attendance figures are influenced by full instructional calendars, including half-days, which typically reduce attendance rates across the district and can lower the overall average used for funding calculations.
Attendance, Half-Days, and Funding Calculations
One of the more detailed discussions among trustees and administrators centered on the role of half-days in the district calendar and how they affect funding. Because state allocations are based on average daily attendance, any reduction in student presence, including scheduled half-days, can have measurable financial implications.
District staff acknowledged that removing half-days could improve average attendance figures, potentially increasing state revenue. However, they also noted that those days serve important instructional and administrative purposes, including allowing teachers time to complete grading, finalize reporting requirements, and prepare for upcoming academic periods.
Deputy Superintendent Kevin Phillips explained that the district is still evaluating the issue as part of future calendar planning discussions, and no formal recommendation has been made. The topic is expected to be revisited during the next academic calendar development cycle, with input from district committees and advisory groups, including the school health advisory council.
West estimated that even small changes in average daily attendance can have a significant financial impact. He noted that a one percent increase in attendance could generate approximately $3.1 million in additional state funding for Amarillo ISD, underscoring how closely operational decisions are tied to budget outcomes.
Demographic Trends and Regional Context
Beyond internal attendance factors, district leadership also pointed to broader demographic trends contributing to enrollment decline. West explained that the reduction is not primarily driven by families leaving Amarillo ISD for neighboring districts, but rather by long-term changes in birth rates across the region.
He noted that the Amarillo area is experiencing an estimated decline of roughly 800 births per year, which is gradually reducing the number of school-age children entering the education system. This demographic shift is expected to continue influencing enrollment patterns in the coming years.
District officials also observed that most school districts in the surrounding area are experiencing similar enrollment declines, with the notable exception of Canyon ISD, which has not followed the same downward trend.
These broader demographic pressures have created a structural challenge for Amarillo ISD, as declining enrollment reduces revenue while many fixed costs, such as facilities and staffing commitments, remain relatively stable.
Property Tax Base and State Funding Interaction
In addition to enrollment-based funding, Amarillo ISD also relies significantly on local property tax revenue, which accounts for approximately one-third of its total budget. West explained that recent changes to homestead exemptions have impacted the district’s tax base, particularly given that a large share of properties within the district boundaries qualify as homesteads.
Representatives from the Potter-Randall Appraisal District informed the district that taxable property values are projected to increase by approximately two percent. Historically, Amarillo ISD has seen annual increases closer to three percent, meaning the current projection represents a slight slowdown in property value growth.
West also noted that as property values increase, the district’s maintenance and operations tax rate typically adjusts downward. In the current projection, he indicated that the rate is expected to decrease slightly, reflecting the inverse relationship between taxable value growth and the tax rate required to generate comparable revenue.
District leadership emphasized that there are essentially three primary pathways to increasing school funding: increasing enrollment, increasing tax rates, or securing legislative changes that modify the state’s funding formulas or allotment structures. Board members acknowledged that each of these options involves significant constraints, whether demographic, political, or regulatory.
Projected Revenue Decline and Budget Adjustments
For the upcoming fiscal year, Amarillo ISD is projecting a revenue decline of approximately $1.7 million, driven largely by reduced state funding linked to enrollment losses. The district is also estimated to be 449 students below its current year budget projections, with an additional decline of 447 students expected for the upcoming school year.
To address the anticipated shortfall, district administrators have proposed a series of cost-saving measures designed to preserve financial stability while maintaining core services.
One of the most significant proposals involves reducing staffing costs by approximately $3.3 million through the absorption of 41 full-time positions. District leaders emphasized that these reductions would be achieved entirely through attrition, meaning positions would not be filled as employees retire or leave voluntarily, rather than through layoffs or involuntary job cuts.
Another major proposal includes reducing the district’s contribution toward employee health insurance. Under the proposal, the district’s monthly contribution would decrease from $800 to $600 per employee, resulting in an estimated savings of $6 million.
Additional cost-saving measures under consideration include reallocating approximately $300,000 in salaries for bilingual and English as a Second Language positions to federal funding sources, eliminating teacher supply stipends totaling around $125 per teacher, discontinuing cell phone stipends, and removing a non-contract salary allocation from the budget.
District officials also noted that utility expenses have exceeded expectations in the current year. However, planned school consolidations are expected to reduce utility-related expenditures by approximately $500,000 in the upcoming budget cycle.
Altogether, these measures would generate an estimated $10.3 million in total savings for the district.
Proposed Compensation Increases for Staff
A key component of the budget plan involves reinvesting a portion of the projected savings into employee compensation. West proposed allocating approximately $4.2 million of the total savings toward salary increases across multiple employee groups.
Under the proposed structure, teachers would receive a one percent increase in daily pay rates. Other staff groups would receive tiered increases based on role and responsibility. Librarians, nurses, campus attendant specialists, and speech-language pathologists would receive three percent increases, while counselors, diagnosticians, and licensed specialists in school psychology would see increases of five percent.
Assistant principals would be eligible for four percent increases, while associate principals and directors would receive two percent increases. Principals and similarly classified leadership positions would receive one percent increases. All remaining staff not included in these categories would receive six percent increases.
District leadership noted that teacher pay adjustments are relatively modest in this proposal because teachers have already received significant compensation increases in recent years, including stipends and percentage-based raises implemented during prior budget cycles.
West also referenced funding provided through the state’s Teacher Retention Allotment, which was established following legislative changes under the Texas Education Agency and related to HB 2. Under that program, eligible teachers receive additional annual compensation based on years of service, with long-term educators receiving increased allotments after three and five years of service.
District administrators noted that Amarillo ISD has consistently provided annual pay increases for staff for more than three decades, a point that was highlighted during the meeting as a long-standing district priority.
Trustee Response and Budget Process Timeline
During the meeting, members of the Amarillo ISD Board of Trustees expressed appreciation for district leadership’s continued effort to present a balanced budget despite ongoing financial pressures. Trustees acknowledged the complexity of the process, noting that declining enrollment and evolving state funding formulas have made long-term planning increasingly challenging for public school systems across Texas.
Board members also recognized the work of district administrators and financial staff in developing a budget that attempts to balance fiscal responsibility with employee compensation and operational needs.
Board leadership indicated that the proposed budget will continue to be reviewed in the coming weeks ahead of a formal vote scheduled for the June 8 board meeting. That meeting is set to begin at 5:30 p.m. at the Amarillo ISD Rod Schroder Education Support Center.
Outlook for the Coming Fiscal Year
As Amarillo ISD prepares for the next budget cycle, district leaders face the ongoing challenge of aligning expenditures with declining enrollment and fluctuating funding sources. While cost reductions and efficiency measures are expected to help stabilize finances in the short term, long-term projections suggest continued pressure unless demographic trends or funding structures change.
The district’s approach reflects a broader trend among Texas school systems, where enrollment shifts, property tax dynamics, and state funding formulas increasingly intersect to shape annual budget decisions.
