Where does a school district’s money come from? School funding is largely in the hands of states. The primary job of the state finance system should be to account for differences between the districts in the cost of providing the right educational quality level, and then to distribute the funds. About 30 years ago the Texas Supreme Court ordered the Texas Legislature to fix the state’s unequal school funding system. The fix by lawmakers is often called the “Robin Hood” recapture plan. In 2023, three school districts voted to stop paying the recapture money to the state and two of those districts are here in North Texas. Carroll ISD and Keller ISD led the way and if other districts followed it would force the legislature to look at more options. If you received one of the recent postcards, they sure look misleading!
So, what is the funding system? According to a 2019 Texas Tribune article, “Texas guarantees every school district a certain amount of funding for each student. State lawmakers determine the base number per student, which is currently $5,140. Many educators argue that the state should regularly increase that base number, at least with inflation, to get all schools the money they need. But the amount has not changed in four years.” What many Texans don’t realize is that Texas consistently ranks in the bottom 10 to 12 states for education spending per student. According to an article by Texas Standard, Texas hasn’t increased school funding since 2019. It goes on to say to keep up with inflation over the last four years, state lawmakers would need to add almost $1200 per student. Two North Texas districts, Carroll ISD and Keller ISD, led the way and if other districts followed it would force the legislature to look at more options.
Remember when we were told if we approved the Texas Lotto, it would support education, where is all the money from the profits of these scratch-offs and power ball drawings? The truth is only 7% of the funding by the state for the state’s public school system comes from the Texas Lotto. However, the Texas Lottery is a better wordsmith to perfume the pig. The Texas Lotto website reads, “The Texas Lottery Supports Texas Education. Since 1997, the Texas Lottery has contributed $33.9 billion to the Foundation School Fund, which supports public education in Texas.”
While funding is an important part of the discussion so are the spending habits of some of these districts. How did our school district choose to spend their money? Are the funds being distributed properly? Are they spending based on a well-thought-out budget? We decided to investigate the spending habits via the Frisco ISD Check Registers on the district’s website. The district has 4 funds: The General Fund, Child Nutrition, Debt Service, and Capital Projects. We started with the General Fund!
$$ Legal Services: In 2024, Frisco ISD paid Abernathy Law $40,851.93, in 2023 they paid $85,913.58. We are curious, would it be a conflict of interest if the same law firm represented both the city and the School District? Was the legal advice received around these “Public-Private Partnerships” that are sold to residents as success ventures.
$$ Legal Services: In 2024, Frisco ISD paid Walsh Gallegos Kyle another law firm $411,336.57 and in 2023, $353,028.02. Why does the district have two different law firms? What kind of legal services is the district needing?
$$ Amazon: In 2024, the district spent $2,271,090.30 on “MISC SUPPLIES.” That is slightly higher than the 2023 spend, which was $2,047,880. That is a lot of Amazon!
$$ Dallas Physician Medical Services for Children: In 2022, the district opened a medical clinic to provide FISD employees with free access to health and wellness. As we know nothing is free! In 2024 the district paid DPMSC $470,000 dollars, and in 2023 the district spent $472,000 dollars. We are curious why they would partner with a medical service for children – when it is supposed to be for adult employees.
$$ Blue Star Frisco EV: In 2024, $457,915.28 for “Rentals”, in 2023 the district paid 359,028 dollars. When the public-private partnership was announced for The Frisco Star residents were led to believe this was a good deal for the school district as they would have use of the facilities. The city website reads “It houses Frisco ISD events such as football games, soccer games, marching band competitions, commencement exercises, and other similar events.” Everyone failed to mention how much the district would pay for it each year on top of what the district paid for in the original agreement.
$$ City of Frisco (Contracted Services): In 2024, the district paid the city $2,361,742.00 and back in 2023, they paid $2,135,134.56 dollars. What contracted services cost that much?
$$ City of Frisco/Park (FISD Debt Payment): In 2024, the district paid $4,511,073.80 and back in 2023 they paid $5,678,818.38. What is the district getting back from that?
$$ Hilltop Holdings (Yearly Investment): In 2024, the district paid Hilltop Holdings $63,301 and in 2023 it was $81,017.98. What is the yearly investment for?
$$ GCS Trails of Frisco (Contracted Services): Par for the course the city is paying for the use of the facilities for GOLF! In 2024, the district paid $61,555.85 and then in 2023 they paid $54,893.94. I thought the whole point of the PGA partnership was to have “USE OF THE FACILITIES” so why are we paying to rent facilities.
$$ Population & Survey (Demographics Survey): The most interesting expense was the 2024 payment for $115,700 for a survey. Then we noticed in 2023 they paid $113,450.00 for another survey. Why? For What? We plan to file a PIR for the information.
The district’s website reads “OUR MISSION is to know every student by name and need.” At Frisco Whistleblower our mission is to understand how the district spends its money and the need to ask us for more Bonds = More Taxes! There were many more payments in the 2024 and 2023 General Fund Report that some may question. While we wanted to highlight a few, we are still left with the question of what the point of the Tax Increment Reinvestment Zone (TIRZ). If all we are doing is paying out on them then how are they beneficial? What are we getting back from these TIRZ if we now have to go and ask residents for another $1 Billion dollars? Next up we will look at the 22/23/24 Capital Fund spending. Until then, you can review the Financial Reports on the district’s website. Lastly, look over the check registers as you might find some interesting things like we did.
Frisco ISD has proposed a new 2024 Bond Vatre which the district and the so called “Vote For Frisco ISD PAC” are pushing hard for. They want us to vote on four (4) propositions that they claim will fund important projects. What is a VATRE? A VATRE is triggered when a board adopts a tax rate that exceeds the district’s voter-approval tax rate (VATR). The VATR is determined for each district by a statutory formula and is the highest tax rate a board can adopt without holding an election. A district’s adopted tax rate has two components: its debt service rate or its interest and sinking (I&S) rate, and its maintenance and operations (M&O) rate.
While a bond election authorizes the issuance of bonds to generate funds for a district’s buildings and infrastructure and to be repaid from I&S revenue, a VATRE approves an increase in the district’s M&O tax rate, which can only be used for items related to programs and people, such as teacher salaries and stipends, training programs, educational programs, and other student activities, such as extracurricular programs. Confused yet?
The school district and the Vote For PAC are selling it to you on the basis that the priority has shifted from building new schools to maintaining the district’s existing facilities. A key piece of the proposed bond is refreshing aging schools and the supposedly includes a refresh for 20 Frisco ISD campuses that are 25 years old. The VATER portion according to the district’s website is needed to increase teacher pay and be more competitive. The district claims this will affect every campus, but they promised similar things in the 2018 bond, and we question if the money was used as they promised. Now they are back, asking us to trust them again but remember they DO NOT HAVE TO USE IT FOR THE REASONS THEY ARE ASKING FOR NOW. That means you can vote for it and then they can change how they or what they use the money for just like they did in 2018.
Getting the information out to the public about the upcoming propositions is not cheap. In fact, principals and the district are trying every avenue possible to get the information out, from using the PTA’s to hold informational sessions to ADVERTISING! Community Impact is one of the largest community papers for Frisco and for a long time we have thought they are in bed with Frisco political powers. We have never seen them write a hard-hitting story or an investigative story, instead most of the articles are “watered down” informational pieces. We have always had one burning question when it comes to Community Impact, how much does it cost to advertise during campaign season. I mean we know Jeff Cheney can afford it because he always owns the back cover for his business – but at what cost?
We started looking into these questions awhile back and set what we had found to the side until we saw a post on social media asking, “How much did Frisco ISD pay for the four-color glossy sticky notes located front and center in the recent Community Impact?” The paper has several different avenues of advertising such as an insert, sticky notes, direct mail postcards, online presence, and in-paper display ads. If our research is right, we can tell you!
We were sent a copy of their Frisco Elections Advertising PDF and according to the document, Community Impact goes out to 85,264 mailboxes in Frisco and their online presence in Frisco hits about 10,176 daily subscribers. Not bad coverage for a city with voter apathy! You can also bet they are working their inside connections in the Desis community as they alone can decide this vote.
Drum Roll Please…… Sticky Notes cost $0.15 each! If the district did 85,264 sticky notes to the Frisco readers, then the district spent $12,789.60 for one paper. Additionally, inserts are $0.15 each, sticky/insert combo is $0.25/set, and direct mail postcards are $0.26 each. If they decided to use the website ads on communityimpact.com it would cost $300/month per market for 30 days. If they choose to advertise via the morning impact email newsletter that goes out to 10,176 subscribers, it will cost $500 for the top of the newsletter and $450 for the middle of the newsletter.
We have a lot of questions:
Should the district be paying $13k for advertising when there is a Vote For PAC who has organized?
Are they advertising clearly, correctly and honestly? For example, on the districts website it reads “100% of bond funds stay in the district and is not subject to recapture by the state.” Will it really stay “IN THE DISTRICT” such as our schools and facilities, or will any of it (even $1 dollar) go to one of the public-private partnerships they have? You might have heard the City of Frisco approved a $182 million renovation for Toyota Stadium, but did you know Frisco ISD pays part of that bill? The recent headlines don’t alert you that the ISD is paying part of that BIG BILL!
That is right, $77 million of the $182 million comes from the public-private partnership TIRZ for the City of Frisco and Frisco ISD. They just did stadium improvements in 2016 for Toyota Stadium. I thought the point of all these public-private partnerships was to make money not just spending it. They also have a TIRZ / public-private partnership for the PGA Golf Course, Ford Center, Expansion of Dr. Pepper Arena, etc. Read more about it on their website.
While they are claiming 100% of the bonds are staying in the district, they are not telling you the VATRE is subject to recapture. According to Community Impact, “the new tax rate would generate an additional $11.5 million in revenue for the district. In total, the increase would generate $19.5 million in revenue, but $8 million would go to the state in recapture.” But they are not advertising that, are they? FISD voters last approved raising the M&O portion of the tax rate by $0.13 per $100 valuation in 2018.
We are just diving into the ISD stuff but as of right now we are not sold on voting for this bond/vatre. Just a few concerns include, we question if Waldrip the Super Intendent is the right might to lead the district as the last city he was in didn’t want him. We also don’t trust the school board President who has a history of personal financial problems to oversee tax dollars. We also don’t believe Frisco ISD is being smart, transparent or effective with the money they have now and we are unsure if throwing more money in the pot is the best solution. Last but not least our ISD needs to explain if any of this money will ever be used for public-private partnerships because if it will that makes it a no for us!
They are dropping like flies now. Upper management leaving as fast as they can under new leadership.
Sangita and Jared are both solid individuals with the best intentions for Frisco. I don’t know the others but we…
The sheer hypocrisy here is priceless. Half of you "christian" Karens on here harping about this are either involved in…
It wasnt very long ago that a job as a Frisco Firefighter was a prized “get”. They had shiny new…
Your comments capture perfectly the concerns I have with Meeks and Gopal. Meeks as still another real estate person -…