The Canyon ISD Board of Trustees on Aug. 25 approved the district’s proposed 2025–26 budget and set the tax rate for the upcoming year, even as finance staff warned trustees the general fund faces a projected deficit of roughly $6.4 million for 2025–26.

What the board approved: trustees adopted the fiscal-year 2025–26 budget as presented by district finance staff and set the combined tax rate at 0.9292 per $100 of assessed value (M&O 0.6669; I&S 0.2603). The budget and tax-rate motions passed by unanimous votes.

Why it matters: administrators said the district’s certified property values and legislative changes altered state aid calculations and left the district forecasting a multiyear structural gap. Finance staff presented reconciled financial statements as of June 30 and said the general fund balance will be drawn down if corrective steps are not taken.

Numbers and context: district staff reported reconciled cash and investments of about $58 million as of June 30 and year-to-date interest income of about $2.4 million. Staff said the district has an estimated enrollment near 11,500 students and that certified property values declined from prior preliminary estimates because of increased exemptions and senior freezes — changes that affect the tax base and state funding offsets. The administration showed a projected 2025–26 general fund deficit of about $6.4 million before mitigation steps.

Actions and planned changes: administrators described several approaches already under way or recommended to reduce pressure on the general fund: tighter project prioritization in operations and maintenance; moving the transportation program to an internal service fund so costs are invoiced and visible to program managers; stronger budget ownership at the department/campus level; and continued work by compensation and resource committees to find efficiencies and priority-based reductions. “We’ve got to be very particular about the special projects that we do, and make sure that we’re getting the biggest bang for our buck,” the district’s operations director said.

Board discussion: trustees asked for more detail on long-term sustainability and options to close the gap. Finance staff said some federal reimbursement streams have fallen and that certain line-item coding adjustments made during the reconciliation reduced apparent surpluses in some functions. Trustees supported giving program leaders more budget visibility and said the district should prioritize critical maintenance such as roofs and security work.

Vote and next steps: the board approved the budget and tax rate on unanimous voice votes. Staff said administrators will pursue the internal-service fund change for transportation, finalize budget-code cleanups, and return to the board with additional options and follow-up as the school year progresses.