CARROLLTON — The Carrollton-Farmers Branch ISD Board of Trustees voted Thursday to adopt the district’s 2025–26 budgets and to lower the district property tax rate to 0.9481 per $100 of taxable value.

At a specially posted public meeting, trustees approved three statutorily required budgets — the General Operating Fund, the Student Nutrition Fund and the Debt Service Fund — and adopted a resolution to release previously committed fund balance in the district’s state revenue stabilization reserve to offset anticipated revenue fluctuations. The board also set the tax rate at 0.7481 for maintenance and operations (M&O) and 0.20 for interest and sinking (I&S).

The action matters because the budgets direct how the district will allocate money for instruction, operations and debt service while the tax rate determines local property tax collections. Miss Settle, the district presenter, said the district crafted the budget amid statewide changes to school funding and tax exemptions and emphasized the district’s priority on student outcomes.

Miss Settle outlined the fiscal picture and state changes that shaped the proposals. She said the 89th Texas Legislature increased homestead exemptions (through Senate Bill 4 and Senate Bill 23) and made a large statewide investment in teacher pay; the presentation referenced “over $8,000,000,000” in increased revenue for teacher salaries. The board’s packet and presentation also cited requirements in the Texas Education Code, sections 44.001–44.006, and the Texas Tax Code, chapter 26, governing budget and tax-rate adoption.

On the budgets themselves, Miss Settle said the General Operating Fund is presented with a projected $6,000,000 deficit; the Student Nutrition and Debt Service funds are shown balanced. She said the district is carrying forward required teacher pay increases under HB2 and issued a 2% off-midpoint raise for other employees while reducing overall expenditures through strategic reductions. "If there is ever a document that displays our priorities, it's the annual budget," Miss Settle said.

The presentation described district spending priorities: roughly 60% of expenditures are focused on instruction and related student services, including school leadership, counseling and health services. She also addressed ‘‘function 91,’’ the state recapture (sometimes called Robin Hood) transfer, and noted recapture calculations can change with refined average daily attendance figures submitted through PEIMS.

Miss Settle reported the Student Nutrition Fund expects a balanced budget despite rising food and salary costs and noted the program served more than 1,000,000 breakfasts and 2,700,000 lunches last year; the presentation also referenced consolidation that included closing four kitchens.

Board members asked for clarifications during discussion. One trustee asked about an increase in Function 41 (general administration); Miss Settle said the change resulted from correcting payroll coding errors and reallocating salaries to the proper function codes per the Financial Accountability Resource Guide. The board emphasized that adopted budgets should reflect corrected codes rather than post-adoption amendments.

On motions and votes: the consent agenda was adopted unanimously; the board approved the release of the committed fund balance in the state revenue stabilization reserve by motion of Randy Schachman (mover) with Paul Gilmore seconding; the motion passed 6–0. The board adopted the proposed budgets (item 5B) by motion (mover not specified in the record) and approved the tax rate by motion of Marjorie Barnes, seconded by Eliana Garza Rojas; the tax-rate motion passed 6–0.

Miss Settle and trustees repeatedly noted that the I&S (debt service) rate cannot be used to fund general operations, and the district described its I&S rate as one of the lowest in the area. Miss Settle also explained that property tax bills are affected by appraisal values set by Denton and Dallas central appraisal districts, which are outside district control.

The board closed the meeting with thanks to district staff for budgeting efforts. No members of the public requested to speak on the proposed budget during the posted public comment period.

Trustees present for the special meeting were Cassandra Hatfield (presiding), Eliana Garza Rojas, Marjorie Barnes, Carolyn Benavides, Paul Gilmore and Randy Schachman.

The board adjourned at 6:24 p.m.