During a tumultuous board meeting on January 30, trustees of Keller Independent School District (ISD) faced significant opposition from parents, students, and alumni regarding a proposed division of the district. The proposal, aimed at addressing a projected $10 million budget deficit for the 2025-26 school year, has sparked controversy and raised concerns about financial viability and transparency. A financial report from Moak Casey indicated that splitting the district would not significantly alter revenue streams, leading some trustees to question the wisdom of such a move.
The debate over dividing Keller ISD into two separate entities began in January when the district revealed its dire financial situation. Trustee Joni Shaw Smith expressed skepticism about the plan, noting that the financial report did not account for increased administrative costs or other potential expenses associated with running two districts. She argued that without a comprehensive analysis, it was premature to consider splitting the district. Many attendees echoed her sentiments, emphasizing the need for more detailed information before making such a consequential decision.
The district's financial struggles have been exacerbated by declining enrollment and state funding shortfalls. Over the past two years, Keller ISD has implemented cost-cutting measures, reducing its budget by nearly $45 million. Despite these efforts, the district remains in a precarious financial position. Chief Operating Officer John Allison highlighted the impact of inflation, rising operational costs, and an outdated funding formula on the district's finances. Enrollment trends also paint a concerning picture, with a steady decline in student numbers projected to continue for at least a decade.
Trustees and community members alike have raised concerns about the hidden costs of a potential split, including increased administrative expenses and challenges in dividing debt and assets. Some residents called for an election to allow voters to weigh in on the proposal. Tarrant County Commissioner Alisa Simmons emphasized the importance of giving citizens a voice in deciding the future of their schools. She urged residents to take their opinions to elected officials, stating that denying them this opportunity could further erode trust in the process.
The discussion around detaching part of the district has also sparked legal debates. Attorneys have briefed commissioners on the statutory framework for school district detachment, explaining the two primary methods for initiating the process. However, legal experts acknowledge uncertainty over whether a resolution alone is sufficient to create a new district or if it merely triggers an election. This ambiguity has led to differing opinions among local leaders, with some advocating for resident participation through voting while others believe a resolution is enough.
In response to the financial review conducted by RSM US, trustee Micah Young expressed certainty that changes are necessary. The audit revealed that past leadership overestimated revenues and failed to adjust spending, resulting in overspending by $35 million from 2021 to 2023. Young emphasized the need for structural changes rather than short-term fixes like real estate sales. As the district continues to explore options for addressing its financial challenges, the community remains divided on the best path forward, with many calling for transparency and inclusivity in the decision-making process.