McAllen ISD approves March budget amendment amid property tax protests

The McAllen Independent School District (MISD) held its regular board meeting on April 8, 2025, focusing on financial updates and budget amendments for the upcoming fiscal year. The meeting was led by Superintendent Dr. Gutierrez and included key presentations from Deputy Superintendent Lorena Garcia and Chief Financial Officer Joel Garcia.

The first item on the agenda was a report regarding a yield reduction payment to the IRS related to the district's 2020 maintenance tax note. Joel Garcia provided an overview of the situation, explaining that the district earned $697,298 in interest from bond proceeds during the reporting period from February 11, 2020, to February 11, 2025. However, the IRS allows earnings only up to $253,083, resulting in an excess of $444,215 that must be remitted to the IRS. Garcia clarified that this payment would not impact the district's operating budget, as it would be made using interest earnings generated from the bond itself. The item was presented as informational, with no action required from the board.

The second item discussed was the approval of the March 2025 budget amendment for the fiscal year beginning July 1, 2024, and ending June 30, 2025. Lorena Garcia highlighted a decrease in fund 199 due to lower-than-expected current tax collections for the 2024 tax levy, primarily attributed to tax compression and property value adjustments. She noted that the district is currently protesting the certified property values, which showed a significant variance from earlier estimates. Despite these challenges, Garcia expressed confidence that the district would end the year positively, with potential funding recovery through property appeals and savings from payroll costs.

The board moved to approve the budget amendment, with the motion carried unanimously. The meeting concluded with no further discussions or questions, marking a productive session focused on financial stewardship and planning for the future.