For more than two decades, China Spring ISD has earned an "A" for Superior Achievement under Texas' FIRST Financial Accountability Rating System, the state's highest rating for financial management and reporting.
The FIRST report for the 2024-25 school year was presented to the Board of Trustees during the regular board meeting on Monday, October 20, 2025. China Spring ISD received a score of 92 out of 100, continuing the district's long record of sound financial oversight.
The Texas Education Agency assigns one of four financial accountability ratings to Texas public school districts: A for Superior Achievement, B for Above Standard Achievement, C for Standard Achievement, and F for Substandard Achievement. The evaluation reviews 15 indicators of financial health, including administrative cost ratios, the accuracy of financial information, and the district's ability to meet financial obligations.
A key element of the FIRST rating evaluates whether a district generates enough revenue to cover the cost of daily operations. China Spring ISD has maintained a healthy fund balance, or savings account, meeting the TEA recommendation of 60-90 days of operating expenses. However, after operating at a deficit for the past three years, the district cannot continue to rely on its fund balance to cover expenses.
"The fund balance has helped keep the district financially stable, but it's not a long-term solution," said Superintendent of Schools Dr. Marc Faulkner. "We must ensure our revenue keeps pace with the cost of running our schools."
The Voter-Approval Tax Rate Election (VATRE) on the Nov. 4 ballot will have a direct impact on the district's financial outlook. If approved, the measure would allow China Spring ISD to generate additional local revenue to address the deficit and maintain a healthy financial position, supporting strong FIRST ratings in future years. If the measure does not pass, the district will continue to meet state financial standards but will make budget adjustments to address the deficit, which will include cutting student programs and reducing staff, which could affect future ratings.