Pam (district finance officer) presented the district’s preliminary financial reports for the month ending Aug. 31, 2025, covering the statement of revenues and expenditures, balance sheet, tax statement, capital projects and the quarterly investment report.

Pam told trustees the general operating fund shows expenditures at about 98% for the fiscal year and that final recapture and state-aid adjustments will be set by the Texas Education Agency after fall PEIMS attendance data and updated tax collections are incorporated. “We anticipate the amount of recapture to be close to the $50,000,000,” she said, and noted that final settlement for fiscal year 2024–25 will not occur until auditors’ data is received by TEA, likely in February; any changes will be recorded in the 2025–26 fiscal year.

Pam reported total cash and temporary investments of approximately $317 million at fiscal year-end and accrued wages of about $8.7 million tied to annualized contracts and pay schedules. For tax collections she reported net receipts of $151,207 for August and outstanding current and prior year taxes of about $5.1 million through Aug. 31, with current collections at approximately 98.8%.

Pam also summarized bond proceeds and expenditures: from the 2018 issuance about $260.2 million expended; from the 2023 issuance about $113.5 million expended and remaining proceeds; and from the 2024 issuance about $5.5 million expended with remaining proceeds. The quarterly investment report showed average investment yields around 4.7% for the 2024–25 school year and total investment earnings of roughly $21.2 million.

During Q&A, a trustee asked Pam to clarify recapture and state aid; Pam explained that recapture is the statutory mechanism Texas uses to equalize funding by collecting excess local property tax revenue from property-wealthy districts and redistributing it through the state. A trustee summarized county levy math for the audience: of a hypothetical $200 million tax levy, roughly $110 million would go to maintenance and operations, about $60 million toward debt service, and about $30 million sent back to the state as recapture, leaving the district with roughly $170 million to operate. The trustee said the district is running an operating deficit around $4.2 million and urged greater legislative advocacy.

Trustees also reviewed the annual investment report and the district’s recommended investment officers and training sources required by the Public Funds Investment Act (Texas Government Code Chapter 2256). The board later approved resolutions adopting the 2025–26 investment strategy, authorizing broker-dealer lists and other routine financial compliance items during the consent agenda.