Clear Creek ISD's proposed $432 million budget for 2026-27 carries a $22.8 million shortfall, and a projection presented at the board's Monday, Aug. 17 workshop signals that the district's ability to issue bonds without raising taxes is running out.
Chief Financial Officer Alice Benzaia told trustees the shortfall stems from a $16 million drop in state and local funding after the district lost roughly 1,000 students, according to Community Impact.
To plug the gap, CCISD plans to draw from its $39 million capital contingency fund.
"The district's ability to pass bonds without increasing the tax rate is likely coming to an end," Benzaia said at the meeting.
That warning is tied to a debt service reserve projection showing the district's reserves falling from 34% to the board-mandated floor of 10% by fiscal year 2029-30. Once reserves hit that minimum, future bond elections would likely require asking voters to approve additional tax pennies on top of the current rate.
Tax rate holds flat for now
For the coming year, the district is proposing a flat total tax rate of $0.969 per $100 of assessed home value, unchanged from 2025-26. League City homeowners will not see a rate increase for 2026-27.
Positions cut, salaries raised
CCISD eliminated 77 positions through attrition, saving $5 million. Those savings were more than offset by a $7.5 million employee salary increase and a $900,000 bump in the Galveston County security contract.
The district also received more than $4 million through a state allotment for coastal Texas school districts, money Benzaia said will go toward property insurance costs.
Shortfall figure refined
The $22.8 million figure is slightly lower than the $23.4 million shortfall we reported Aug. 5 when the board scheduled the public hearing. The updated number reflects the Monday, Aug. 17 presentation.
As we reported July 31, the district's elementary schools have about 5,000 empty seats, and enrollment is projected to keep falling.
What's next
CCISD holds a public hearing on Monday, Aug. 24, to discuss the proposed budget and tax rate. The board will formally adopt the tax rate at its Monday, Sept. 28 meeting.
