Conroe ISD presents preliminary 2025–26 budget; board warned of special education and ADA funding pressures

Conroe ISD finance staff presented a preliminary overview of the 2025–26 budget and fund-balance projections during a board workshop, flagging legislative uncertainty, special education growth and the state funding formula as primary risks.

Karen Garza, staff member overseeing the budget presentation, said the district used conservative enrollment and average daily attendance (ADA) assumptions — a projected enrollment of 73,500 and a recommended ADA of 93% — and is currently budgeting with a projected 5% certified property value growth. Garza told trustees the district had adopted an $11.9 million deficit budget for the current year and that a 1% change in ADA is worth roughly $5 million to the district.

Trustees pressed staff on special education trends. Dr. Noll said the district’s rising special education counts reflected changes in state eligibility rules rather than a local population shift: "It's not the population that's changed. It's the rules from the state as to how a child qualifies have changed," he said. Garza and other staff said evaluations in the queue could push the district’s special education totals higher than the current projection.

Board members and staff discussed a "basic allotment" penalty that reduces the district’s general-education funding proportionally when students receive weighted special-education services. Garza said removing that penalty would increase local funding by roughly $18 million for Conroe ISD and would require a change in state law.

Garza reviewed personnel recommendations included in preliminary allocations: the proposal shows a net addition of about 110.5 full-time equivalents to the general fund at a projected cost of about $5.8 million, with special education prioritized for a portion of that increase (staff described 31 instructional positions and 39 paraprofessionals among recommended additions). She said those additions were not the full list of needs submitted by special education staff but were what could be funded under current projections.

Staff also described the district’s fund-balance projection. Garza said a recent "over-65 hold harmless correction" certified by the property tax division is expected to deliver roughly $17.5 million overall (about $10 million attributed to the prior tax year and $7.5 million ongoing), lifting the projected unassigned general fund balance relative to earlier estimates. Based on current projections and the adopted budget, Garza said the unassigned fund balance is projected to end 2024–25 around $162.9 million, about $18.3 million higher than earlier projections.

Trustees asked about next steps and timing; Garza said the district will refine revenue and expenditure projections as legislative action and local assessed values become clearer and will return budget updates in July, with public hearings in August and final adoption scheduled for the August regular board meeting.