Closing Valley View elementary, raising taxes through copper pennies and killing Spanish Immersion may help in the near term, but is not enough to put Eanes on a firm foundation for the next chapter in Eanes 150 year legacy
By Aaron Silva
Fortune favors the BOLD (audentes fortuna iuvat) – and boldness is exactly what Eanes Independent School District needs right now. The alarm clock has awakened the community to the harsh reality that Eanes, in its current form, is financially unsustainable. Declining student enrollment (revenue) and stagnant state funding coupled with higher operating costs is forcing the hand of the Administration to make difficult, but short-sighted, near-term decisions to balance the budget. The crown jewel of Westlake Hills faces an unprecedented financial crisis: a $3.3 million deficit in 2024, ballooning to $11 million by 2027. We are in the midst of an accelerating deficit spiral and our cash reserves will be depleted in less than two years.
When I ran for school board earlier this year, I wanted to be on the front lines providing expertise and insights to navigate these challenges, as I could see the storm on the horizon. I talked often about the “success failure” that the district was facing and it appears it has arrived. I may have lost the election, but I didn't lose my desire to be part of the solution. I’m vested like all parents, taxpayers and citizens. While I applaud the Administration for acting quickly, incorporating ALL the options currently on the table will only buy us 1 to 2 years max. Unfortunately, our financial situation is not going to improve with these proposed measures, due primarily to demographics. It's not the state funding formula and not lower-than-expected property values. Fewer kids means lower revenue, it’s that simple.
What our community (and most importantly our kids) need is a BOLD 10-year strategic plan that clearly communicates how we will realign our facilities and resources to balance our budget and remain a powerhouse school district. Barring this, I fear we will be faced with having "difficult discussions" year after year, and the longer we wait to be BOLD, unfortunately the fewer options we will have. This essay outlines my BOLD plan – one that considers long-term realities and doesn't continue to rely on the hopes of more transfer students, more support from the State or the need to beg for private donations through EEF…uncertainties I am not willing to bet our kids' future on.
This plan will require sacrifice from ALL of us. Admittedly, it [my plan] lacks the countless details that would be required to put this major puzzle together. But it can be done. Many of my bond numbers are estimates based on similar projects in competing districts nearby and across Texas. This plan is also devoid of the emotional impact, hardships and inconveniences that thousands of our students and families will need to endure over the next 10 years. But I strongly believe the outcomes will serve our community for generations and put Eanes back on the strong footing it desperately needs. My desire is that this essay will elevate the community discussion, provoke thought and stir the debate before our leaders make final decisions in January 2025.
The Stakes are Too High to Not be BOLD
These rankings reflect decades of excellence in academics, athletics, and innovation. They represent why families choose Westlake, why our property values remain strong, and why our community thrives. Yet this excellence now hangs in the balance. Our legacy confirms that Eanes can come back from this calamity but we must do so with clear, open eyes. Set aside our differences and focus on what is best for our children and this great community.
Moving Beyond Short Term Solutions
The Board of Trustees is currently considering several emergency measures: closing Valley View Elementary (“blending” with Barton Creek); terminating the successful and beloved Spanish Immersion program with more than 780 enrolled students; ending Professional Development time for teachers; and raising property taxes through "copper pennies." While these steps might temporarily patch the budget hole, they represent short-term thinking that fails to address our long-term fundamental challenges.
As a former school board candidate, lifelong entrepreneur, businessman and parent of two Eanes students, I've spent a good amount of time trying to understand the district's finances and demographics. The harsh reality is we are facing a structural problem that requires structural solutions. Since 2019, our leadership has taken their eye off the ball and underestimated the long-term impact of a steadily eroding in-district student population by depending on transfer students to fill the holes.
The Demographic Reality
Contrary to current explanations, our challenges aren't primarily about state funding formulas or inflation. In April 2024, I wrote an in-depth research and analysis essay “Has Eanes Peaked?” about what I, and other experts have demonstrated, is the most important problem facing Westlake. The short answer is that most all of our issues stem from a fundamental shift in our community's demographics:
Fact: Every student generates approximately $6,160 in revenue from the State.
If the student population declines by approximately 150 students annually (as is projected) it will generate a $1,000,000 shortfall every year.
Eanes projects enrollment of 7,100 by 2026-27 school year - a 1,074 (15%) decline from a high of 8,174 in 2019. See the trend?
A land-locked district with average home prices of $2 million block young families that are increasingly priced out of the market. Our older population is not moving out either.
Increased competition from local private schools and new, modern public campuses to our North, South and East is encouraging parents to find alternatives to Eanes.
Fact: We graduate approximately 675 to 700 seniors every year. We only enroll about 450 kindergarten students leaving a 225 to 250 student gap. Only about 50% of that gap is being filled by in-district families with young children. Older children tend to join cohorts in middle and high school. See the chart below.
What Would Gretzky Do?
Wayne Gretzky famously said, "I skate to where the puck is going to be, not where it has been." Our current proposed cuts and tax increases are attacking where the puck is – not where it's heading. We need a BOLD, 10-year vision that embraces our future reality rather than clinging to our past or a miracle from the Texas statehouse.
A BOLD 10 Point, 10-Year Vision for Eanes
Right-size (aka “shrink” our school district portfolio) for 6,000 students while maintaining excellence. Consolidate down to four (4) state-of-the-art elementary schools, two (2) middle schools and one (1) high school.
Limit reliance on future transfer students to include only those that have parents working in Eanes. Allow current transfers to matriculate through the system and graduate.
Build, update, modernize all facilities through $650 million to $1 Billion in strategic bonds. 100% of bond money goes toward our district capital projects.
Expand the Spanish Immersion program to be Texas's largest and best.
Strengthen an unmatched Special Education program.
Reduce teacher attrition from 20% to under 5%. Raise top teacher salaries above $100,000.
Build a $50 million EEF endowment funded in part by implementing new revenue-generating strategies.
Recruit business-savvy parent leaders for the Board of Trustees.
Continue our legacy of winning athletic championships in the smaller 5A division.
Maintain the broadest curriculum and State leading extra-curricular facilities.
The Path Forward: Specific Actions & Decisions
With the vision for WHAT our goals will look like, let’s talk about HOW we are going to get there. If our goals are big enough, walking past a $6M or $11M deficit is going to be easy in comparison to the effort it will take to achieve the larger ambitions. Big, long term goals make big, short term problems look small and that is the context that is missing from the current proposed solutions of cutting head count, raising taxes and slashing programs and schools.
Why the Current Proposals Won’t Work for the Long-Term
It is important to reconsider the district's current proposals, while well-intentioned, they don't match the scale of our challenge:
Closing Valley View
Yes, the population at Valley View has been hovering for years at 50% and the campus should have been closed years ago. It feels like a dramatic move but by now you understand that it’s not enough to close only one elementary school. Closing Valley View will not fix the in-district population nor will it increase the amount of Kindergarten enrollment next year or the year after that. Remember, we have a student gap problem no matter how many schools we have open. Let’s close Valley View and Forest Trail and start to right the ship now.
Copper Penny Tax Increase
The only tax revenue option we have left is to sell our remaining "Copper Pennies" which will yield us $4M in exchange for sending $16M to the state recapture. This is the most inefficient way to generate revenue. The board of trustees will most likely propose this tax increase to voters in 2025.
Shutting Down Spanish Immersion
It would be a shame to cut off 780 students from a critically important development skill. Saving $600,000 while risking $739,000 in transfer student revenue (105 transfer students plus 15 Spanish Immersion teachers’ kids = 120 x $6,160 = $739,000) makes little financial sense. More importantly, it damages one of our most successful diversity and inclusion programs. The program appears to finally be hitting on all cylinders when the curriculum was changed to a 90/10 Spanish/English program this year.
The Time for Bold Action Is Now
Our community has never shied away from BOLD action in pursuit of excellence. The financial challenges we face today require the same courage that built Eanes into Texas's premier school district. By thinking bigger and longer-term while skating to where the puck is going, we can transform today's crisis into tomorrow's opportunity.
The choice is clear: we can make incremental cuts that slowly erode our excellence, or we can seize this moment to reinvent Eanes ISD for the next generation. Fortune favors the BOLD. Let's be BOLD together.
AUDENTES FORTUNA IUVAT
END.
Contact the author:
Aaron Silva