Southwest ISD approves 1.1598 tax rate; board reviews proposed 2025–26 budget

The Southwest Independent School District Board of Trustees approved a voter‑approval tax rate of 1.1598 per $100 of assessed value and heard a staff presentation on the proposed 2025–26 budget, which staff presented with a projected enrollment of 15,216 students and average daily attendance of 13,668.

Staff framed the district's three recommended budgets — the general fund, child nutrition fund and debt service fund — around projected revenue of $182,046,935 and total expenses the presentation listed at about $185,000,000. "We are writing a budget that will have a projected enrollment of 15,216 students with an average daily attendance of 13,668," Speaker 3, a staff member, said during the presentation. Speaker 3 also described a recommended deficit figure in the presentation: "we're recommending, $3,400,000 deficit that we're looking at tonight."

The presentation said the district's expected revenue would come mostly from state sources, with about 1% from federal sources and roughly 30% from local revenue including property tax collections. Speaker 3 summarized spending composition: "We have 83% of our expenses are for salaries and personnel, while 17% of our expenses are for operations." By function, most spending was in Function 11, described in the slides as direct student expenses.

On the tax side, staff recommended — and trustees approved — a maintenance and operations (M&O) rate of 0.7217 and an interest and sinking (I&S) rate of 0.4381 for a combined tax rate of 1.1598, the same total rate as the prior year. In the presentation Speaker 3 said, "the tax rate that we are recommending tonight to be approved is a 0.7217 maintenance and effort tax rate as well as an interest in seeking tax rate of 0.4381 for a total tax rate of 1.1598, which is the same as last year." The board approved the no‑new‑revenue tax rate and the voter‑approval tax rate as required under state law.

Staff noted property values used for local revenue had declined: "our values actually dropped, 2.6%," Speaker 3 said. During the presentation staff also referenced changes to homestead values (the transcript references "new homestead of value to 40,000 and a 140,000"); the presentation did not include further detail in the transcript about how those exemption numbers will be applied.

Child nutrition and debt service budgets were presented as balanced at the figures shown: the child nutrition fund listed roughly $19,000,000 in both revenue and expenditures, and the debt service fund showed approximately $33,000,000 in revenue and expenditures to cover bond payments and a recently approved defeasance.

Staff told trustees that several unfinished purchase orders will be returned in September as part of a budget amendment process (rollovers) so those incomplete purchases do not affect next year's budget. Speaker 3 said the rollovers would be brought back in September for formal board action.

The presentation also described changes in Medicaid billing and expected reimbursements. A staff speaker said the district changed billing vendors and that new state guidelines have reduced the amount the district can bill in some categories. The staff member said the district expects the new contractor may improve reimbursements, but that the reimbursement line in the budget remains uncertain.

Trustees were told the full budget documents and the taxpayer notice required for publication will be posted on the district website after approval.

Why it matters: The adopted tax rate funds both operations and past bond debt, and the presented budget mixes personnel costs (the largest share) with a small planned deficit and reliance on state funding and local taxes. Changes in property values, reimbursements for Medicaid‑covered services, and monthly budget amendments could alter the district’s final fiscal position after August revenue and state settlement receipts are posted.

Next steps: Staff will post the approved budget and the taxpayer notice online and return to the board in September with purchase‑order rollovers and any necessary budget amendments.