Fabens ISD adopts 2025–26 budget with $2.0 million projected deficit; no pay raises included

The Fabens Independent School District Board of Trustees on June 25 adopted the district's 2025'16 budget, approving a spending plan that projects a $2,000,095 deficit and no across-the-board salary increases for staff.

The board adopted the budget after a presentation from Lily Nunez, the district's director of finance, who told trustees the proposed $29,007,912.75 budget is based on a projected average daily attendance (ADA) of 1,680 and would include $284,200 earmarked for athletics stipends. Nunez said the district expects to end the current fiscal year under collection, citing a projected shortfall of about $2.26 million against previously budgeted revenues.

Nunez provided enrollment and ADA figures showing a multi-year decline: enrollment of about 1,952 in 2023 with ADA 1,814; 1,897 enrollment in 2024; 1,827 enrollment in 2025; and a projected enrollment of 1,777 for 2026 with ADA 1,680. She said the budget was prepared using that 1,680 ADA figure and that administrators will cut costs if first-quarter attendance reports show the ADA target will not be met.

The presentation included preliminary tax-rate information. Nunez said the district's current tax rate was 1.1231 and the preliminary 2026 number is 1.1013; she noted the final rate will not be set until July.

Superintendent Rogelio Segovia and members of the administration told the board they had reviewed options and would bring back adjustments if ADA and revenue projections require midyear reductions. Board members pressed for transparency about when any midyear cuts would be triggered and asked for ongoing updates to campuses.

Board President Estrada called for a motion; the motion to adopt the 2025'16 budget was offered by Mr. Ben Morales and seconded by Ms. Ramirez. The board voted to approve the budget on June 25.

The board and administration emphasized the budget is a working plan subject to revision based on actual ADA and state allotment rules. Nunez said the district plans to monitor attendance closely and reduce campus and department expenditures if revenues fall short.

District officials also discussed a one-time $5,000 early-exit incentive that was offered by deadline (June 16) and paid to seven employees; the incentive was characterized as an early-exit resignation incentive rather than a retirement benefit. Nunez said the district may revisit a similar incentive in July for employees interested in leaving midyear, with eligibility to be detailed then.

The board's adoption of a deficit budget follows repeated trustee comments about declining enrollment and the need to restrain spending. Trustees said they will hold additional budget review sessions and updates during the coming months.

Looking forward, Nunez said the administration will present any required midyear reductions and distribution plans for allocated stipend pools at subsequent meetings if attendance or revenue trends change.