An Entrepreneur's Eye on the Budget

Updated: Mar 25

I’ve been signing the front of paychecks since my early twenties, so I’ve proven I know how to successfully operate and grow multi-million dollar enterprises into the future. If I am elected, I will bring that creative CEO’s mindset to the Board, working to build on the District’s successes while ending the unsustainable fiscal practices and policies over many years that are now raising their heads and potentially jeopardizing our future.

Eanes is the state’s highest performing public school district with Westlake High School arguably the most valuable public education asset in Texas. Amazing parents, students, and the high amount of property taxes produced from our homes and businesses that can be invested in education. However, we are on the verge of what I call a “success failure,” if we don’t right the ship.

Declining enrollment, deficit spending, underpaid teachers, and use of debt to “keep the lights on” are all issues that I will work creatively and courageously to solve. That’s how CEOs are wired. While the current Board’s collective resume is good, it’s only with an “Entrepreneur’s Eye on the Budget” that we can take Eanes to the Next Level of Excellence.

Eanes Budget – Nearly All Indicators Going the Wrong Direction

While many are content to continue to complain about recapture or repeat failed attempts to change the law, as a CEO, I am more interested in finding ways around, over, under, and even straight through such a barrier to success.

Eanes is an exceptionally wealthy school district ($22.4 Billion in State Certified Property Value) however we are punished for our property wealth as 61 cents of every dollar collected is lost to “Robinhood”. In fiscal year ‘22-23, Eanes mailed $120MM out of $186MM to other schools in Texas. The average home value is now over $2,000,000 and this keeps young families out – and new elementary student enrollments low. Imagine running a business with the knowledge that your future revenue stream (Kindergartners) is dwindling away and there is nothing you can do about the cause (home prices)?

More student enrollment means we keep more of our own money, but student enrollment has decreased from over 8,116 students in 2016 to 7,700 students in 2023, that’s nearly a 5% decrease. We must take an aggressive approach toward recruiting many more transfers. We simply don’t have an option under the current circumstances.

Policy Proposals

Optimize, maximize, and find creative ways to generate revenue. Scrutinize every expenditure for necessity, efficiency, and effectiveness.
Renegotiate all financial contracts held by the district with 3rd party vendors and suppliers. Yes. Every. Single. Contract. I’ve reduced expenditures for my clients approaching $1 Billion over the last 10 years without losing a single vendor relationship - it can be done.
I will not vote for a deficit budget. However, I will vote for investments in teachers. There’s a difference!

Diverting Bonds $$ for Operational Expenses is a Hard Habit to Kick

Recapture’s inefficiency leaves Eanes with only 39 cents of every tax dollar collected, creating pressure on administrators and Trustees to raise money through Bonds. Bonds are HIGHLY EFFICIENT. Eanes receives 100% of every Bond dollar raised. However, over at least the last two bond cycles in 2019 and 2023 Eanes has taken liberty to creatively re-interpret the Bond usage guidelines, diverting bond dollars away from their traditionally accepted purposes of financing capital projects, constructing new school buildings, renovating existing facilities, purchasing land, upgrading technology infrastructure, or acquiring equipment. I’m not suggesting that this practice is illegal or unethical because I can logically understand finding perfectly legal loopholes in the laws - but this is terribly addictive and dangerous behavior that will be very hard to kick.

If not controlled, this practice will mortgage all of our future property values with a massive debt bomb that will never end. Not all of our taxpayers have children in the school district and can benefit from raising $1MM in debt to pay for uniforms (I’m not kidding, that’s in there plus much more - see Uniforms & Equipment on 2023 Prop A Bond page).

Let’s Be Honest - Bonds are ALWAYS Tax Increases

Once and for all we need to put away creative marketing when it comes to raising a Bond. The state has forced school districts to call a bond a bond but Eanes is not required to calculate the actual impact to your tax bill. When the Board tells you they’re not increasing your taxes, they mean they’re not increasing your tax rate - the only portion of the equation they have control over. But they know better. With rising property values, the Board could actually decrease the tax rate and still bring in the same amount or more revenue than the previous year!

Policy Proposals

Reexamine the use of bonds for maintenance & operations expenses. Taxpayers need more information on Bond usage and what is being diverted away from traditional purposes.
No more misleading statements that bonds are not tax increases or that “things will remain the same” even though we are asking to raise a bond. A bond is always a new tax.

It’s Not Right to Approve Deficits AND Take Money from EEF

Since 2004, EEF has granted over $31 million to Eanes ISD to fund the salaries of more than 631 educators and teachers. This is a remarkable and unique asset we have in our community, but it has gone from a welcome supplement of the District’s budget to an absolute dependency. We cannot allow the generosity of Eanes parents and community partners to be taken for granted or abused by fiscal practices like deficit spending.

Time to Unleash EEF to its Fullest Potential

I’m not in charge of EEF, I’m just a donor. In 2021, my wife and I donated $55,000 and we ‘closed the gap’ many times previously. Less than 50% of our parents donate to EEF and that is a major problem if we want to avoid leaning on inefficient property taxes and bonds.

Policy Proposal

Expand choices for donors that match their own giving priorities and philosophies.
Grant naming rights to EEF for EISD buildings, assets, etc. and enable long-term legacy giving.
Set a goal of raising $50,000,000 for our endowment by 2030.

With your help and your vote on May 4th, I will lead the Eanes Board of Trustees on these issues in order to take Eanes ISD to the Next Level of Excellence.