Summary
The board voted 7–0 to amend the district’s adopted FY2025‑26 maintenance and operations budget after updated guidance on House Bill 2 and other line‑item adjustments, including redirected charges to bond funds and revised TRS on‑behalf amounts.
The Round Rock ISD school board on Tuesday approved a revision to the district’s adopted 2025‑26 maintenance and operations budget after staff received additional guidance on state funding changes tied to House Bill 2 and refined cost estimates.
What changed: Staff said updated TEA guidance and additional analysis produced higher projected state revenue tied to HB2 than originally modeled; state revenue shown in staff materials increased from the June adopted projection and staff presented a proposed amended revenue total that rose by roughly $2 million. Pension (“Teacher Retirement on behalf”) expenses were also adjusted upward. To balance the budget within the maintenance and operations fund, staff increased internal budget reductions slightly and redirected some software and data‑automation costs (for example, Munis, ClassLink, I‑Ready) to the bond fund where lawfully allowed.
Key numbers presented by finance staff: the amended revenues shown in the presentation rose from the June adopted figure to about $48.02 million in the updated spreadsheet (maintenance and operations column totals as presented to the board); staff described a projected recapture/outflow change and said the amended plan reduced previously projected shortfalls. Staff also said negotiated property‑insurance premiums were lower than earlier estimates, creating additional expenditure room.
Why it matters: The board must adopt budget function‑code totals by law; staff said the amendment is mostly an accounting and reallocation step driven by later TEA guidance and by allowable capital charge reallocations to bond funds. Finance staff noted the district is still awaiting outcomes from SB4 litigation/changes and that future adjustments could be required.
Trustee discussion focused on the assumptions underlying the state revenue updates and whether future legislation or court rulings (SB4 referenced) could require further changes. Trustee Wei asked about the effect of a pending homestead exemption proposal (SB4) on future budgets; staff said the net effect generally reduces some local tax revenue while the state offset should increase but the district’s overall totals would be rebalanced if the law takes effect.
Board action: Trustee motioned, seconded and the board approved the amended FY2025‑26 maintenance and operations budget as presented by a 7–0 vote.
