Vidor ISD adopts balanced 2025–26 budget, holds tax rate steady amid homestead-exemption change

The Vidor Independent School District Board of Trustees approved the district—s 2025—26 budget and set the 2025 tax rate on Aug. 19, voting 7—0 to adopt a $47.9—48.0 million revenue plan and a total tax rate of 1.061962.

District finance staff told the board the budget reflects a significant expected change in the statewide homestead exemption anticipated on the November ballot and higher state funding under the current school finance formulas. The presentation noted local taxable property value available to the district fell in the calculations used to set rates because a proposed increase in the homestead exemption would reduce taxable value per homestead from $100,000 to $140,000 if voters approve the measure.

The change matters because state and local revenue interact under the Foundation School Program: less local taxable value can mean more state "hold-harmless" or other state allotments. "If for some reason, the voters went to the polls in November and said we don—t want a larger homestead exemption, and it stayed at the 100,000, these numbers would shift a little bit," district presenter Dr. Mains said, explaining the calculations. "We would collect more locally. The state would put less into our bucket, so to speak." He also said the district—s projected state funding and available school fund are higher overall for 2025—26 than for 2024—25, producing roughly a $3 million increase in total projected revenue.

Why this matters: The board used the revised revenue projections to adopt a budget that funds substantial salary and benefits increases and ongoing bond-related construction while maintaining the district—s fund-balance strategy. The budget includes a teacher pay scale the district described as its largest single-year raise to date and districtwide staff midpoint increases and proposed supplemental health benefits.

Key facts and actions - The board voted 7—0 to adopt the 2025—26 budget and related fund summaries for the general fund, debt service and food service. - Trustees adopted the certified tax values and statement of rate calculations and then set the maintenance-and-operations (M&O) rate at 0.7019 and the interest-and-sinking (I&S) rate at 0.360062 for a total tax rate of 1.061962. - The board approved an amendment to the district—s bond-payment account to fund the first payment on the 2025 bond series; that amendment also passed by voice vote.

Expenditures called out by staff include a planned increase in salary and benefits that account for a large share of spending growth. "A large portion of what we—re talking about spending as far as expenditures go is in salary, is in benefits," Dr. Mains said. He added the teacher raise is historically large for the district and that the district is also proposing a 10% midpoint raise for other staff.

Board members asked about several near-term items drawn from the budget: - Buses: Trustees asked how many buses the district needs and the expected delivery timeline. Dr. Mains said the district had budgeted $160,000 in the proposed capital-outlay line for a single bus and had placed an order; manufacturers—lead times discussed ranged from eight to 13 months. In the discussion one participant asked, "What did they cost, Doctor Mains?" and Dr. Mains replied, "to $1.60. $1.50 to $1.60," language recorded in the meeting record. - Fund balance: Staff said a modest dip in the fund balance is expected this year because the district intentionally plans some projects from fund balance but projected the 2025—26 budget to be balanced once final numbers settle.

Discussion vs. decision - Discussion: Dr. Mains reviewed revenue sources (local collections, state Foundation School Program and available school fund, Medicare/Medicaid reimbursements, TRS on-behalf payments, and miscellaneous revenues) and explained how the homestead-exemption change would affect taxable value. Trustees asked questions about fleet size, bus procurement timelines and budget-line changes. - Direction/Assignment: Trustees did not direct staff to change the budget; they approved the presented budget and directed the superintendent or designee to post required documents as part of the formal adoption process. - Formal action: The board formally adopted the budget, certified tax values, and set the tax rate (all votes recorded 7—0). The board also approved the amendment to the bond-payment account to enable the district to make the first payment on the 2025 bond series.

What remains uncertain The homestead-exemption change will not be final until voters act in November; staff emphasized projections assume the $140,000 exemption for planning and that the final numbers would change if the ballot outcome differs.

Ending note Officials said they would share budget information with principals and the public and that final audited numbers will be reported as revenues and invoices arrive.