Southside ISD reviews state allotments, compensation options and $4.7M insurance shortfall

At a July 16 budget workshop, Southside Independent School District staff presented updated figures for 2025–26 state allotments, possible staff pay increases and a plan to reduce a roughly $4.7 million deficit in the district’s self‑funded health insurance fund.

District budget presenter Carlos told the board the state is providing a teacher allotment that will pay either $2,500 or $5,000 per eligible teacher (based on years of service), a support‑staff retention allotment of $45 per ADA and a basic allotment of $106 per enrolled student that will be measured on the district’s October PEIMS snapshot. "This year's health insurance rates have already been in place," Carlos said while explaining how the self‑insured plan has run deficits.

The support‑staff allotment, at $45 per ADA, will generate roughly $239,000 for the district based on current ADA estimates. The basic allotment, at $106 per enrollment, is projected to generate about $675,000. Carlos also summarized salary‑increase scenarios for employees who are not covered by the $2,500/$5,000 teacher allotment: 2% would cost about $616,000; 2.5% about $770,000; and 3% about $924,000. He noted the district’s final ADA and enrollment figures will come from the October 2025 PEIMS snapshot and will lock in funding for the year.

On health insurance, district staff reported the self‑insured fund shows a negative balance of about $4.7 million in recent audits. Staff proposed a plan to demonstrate to auditors a multi‑year effort to reduce that deficit by beginning to contribute roughly $500,000 per year from district funds. "At some point, an auditor could ask us to make that right. It has a negative $4,700,000 in there," Carlos said. Staff described one illustrative option of offering a 3% pay increase while increasing the district contribution toward health insurance to help pay down the deficit over time. The board was told employee contributions to plans are not being changed this year because enrollment for the coming year has already closed.

Trustees asked for follow‑up detail. Trustee Ceci Hernandez confirmed the comparative spreadsheets being discussed reflect current, not proposed, figures. Other trustees asked which neighboring districts had announced increases; Carlos said some districts, including San Antonio ISD, had announced increases between 2% and 3% and that two comparative districts’ figures on the spreadsheet had been updated.

Staff said the district switched carriers last year from Humana to Blue Cross Blue Shield and made changes to stop‑loss and plan structure to reduce losses. They noted the insurance fund deficit has appeared in audits for several years and likely accumulated after the district left the TRS‑Blue pool and began self‑funding.

Board members requested that staff prepare scenarios showing exact dollar amounts needed to reach the $500,000 per‑year payoff target and provide plan‑by‑plan current and proposed contribution comparisons in a follow‑up communication. Carlos said staff would prepare those scenarios and could detail the exact district contribution amounts in an email or future worksheet.

No formal motions or votes were recorded during the workshop. Staff reiterated the district must adopt a budget by Aug. 31 if the district keeps a September start date and that the October PEIMS snapshot will determine final per‑student funding amounts for 2025–26.

The board held the meeting as Budget Workshop No. 5 and planned to use the remaining time before adoption to refine compensation and insurance recommendations for a future meeting.