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Economic development is the answer to FISD’s financial crisis
By Friendswood Independent School District Superintendent Trish Hanks
 January 7, 200
5

 


Ask anyone in the region what city has one of the most exceptional educational systems, and they will most likely answer, “Friendswood.”  For years, our schools have been rated exemplary by the state of Texas, and our students have received numerous state and national awards.  We have graduated thousands of talented and well-educated students who are making a positive difference in the world.

 

Friendswood Independent School District (FISD), however, is in dire need of financial assistance.  With continued cuts in state funding, Friendswood homeowners are now paying 72 percent of the district's operating budget via their property taxes.  This is well above the state average.  Without additional revenue sources, the face of education in Friendswood could start to look very different.

 

Consider these facts.  As of the 2004-05 school year, there are 5,665 children enrolled in FISD.  It costs the district $6,668 per child, per year to educate these students.  We are growing at a rate of 2.5 percent annually.  Currently, we are dealing with this growth effectively and expect to be able to manage this growth rate for a few more years.

 

However, in terms of our staff and operating budget, we have reached capacity.  Nearly 80 percent of our budget is allocated for personnel, while the rest covers utilities, fuel for transportation, property insurance, instructional supplies, facility maintenance and more.  We have no control over these operational costs.  So, when forced to trim our budget, or attempt to grant our teachers a modest cost-of-living increase, the only area where significant savings can occur is in personnel.  Staff budget reductions can often result in larger class sizes or program elimination. Some of our administrative positions have already been cut, and staff members are being forced to handle additional responsibilities.

 

Furthermore, the state’s financial assistance is based on property values from the previous year. As local values rise (via new construction or value increases of existing property), the state reduces its contribution to the school the following year.  Since state funding is one year behind, it is critical that local values continue to grow annually to offset the reduction in state funds.  Unfortunately, that is not always the case.  In fact, this year our local values did not grow enough to cover the decrease in state funding and the district had to develop a budget with less money, while educating more students.

 

Some people think the best solution to our school district funding challenge is to build more homes.  What people don’t realize is that the cost to educate one child in FISD is equal to the school taxes paid on a $302,000 house.  That’s an expensive home; not everyone within the city owns such a dwelling.  Currently, we are not building enough homes each year to sustain what we need to break even from the state or to cover inflationary costs.  Our board of trustees made a difficult decision to institute participation fees this school year, requiring students to pay between $100 and $150 to participate in extra-curricular school activities in lieu of cutting programs.  If we don’t find a solution to our financial crisis, the elimination of programs could result.

 

So, is there a solution?  Absolutely -- economic development.  By bringing in one, good-sized commercial development – such as a grocery store, office complex or retail outlet/restaurant – we generate more revenue than several houses combined.  In addition, that commercial development adds benefit to our residents’ lives and helps to reduce their property taxes.  Finally, it doesn’t add children to our existing district enrollment.

 

Whereas the words “economic development” may arouse fear among residents, I believe all of Friendswood -- parents, homeowners and business owners – recognizes the urgency for well-planned economic development in order to maintain our community's standard of living.  I often hear parents say they moved to Friendswood for its school system.  I know that was my reasoning 20 years ago. The quality of a community's school system is not only important to parents, but local business owners know that a strong school system provides a more qualified pool of employees.

 

It’s time to make a serious change in how we fund education in Texas, and especially in Friendswood.  Our community's heritage is one that has valued education and nurtured our children.   To preserve that heritage, and keep FISD as one of the state's premier school districts, we must take a proactive approach to designing the future Friendswood.  Economic development is the path to that future, and one destined to lead us further down the road to success.

Trish Hanks has served as superintendent of Friendswood Independent School District for three years.

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