Weslaco ISD budgeting for possible state funding changes; board briefed on property valuations, ADA and set‑asides

WESLACO — Weslaco ISD budget staff gave a detailed presentation on revenue scenarios for fiscal 2025–26, highlighting a still‑pending House Bill 2 funding proposal and a separate Senate voucher program that will begin planning in year one and implementation in a later biennium.

The nut graf: The district advised the board to budget conservatively while preparing scenarios: staff showed a possible $9.4 million boost to district revenue under the House bill as drafted by the Texas House, but noted the state Senate and governor could change those numbers. Staff also recommended holding the tax rate decision until August after final property values and any enacted statewide exemptions are confirmed.

Staff explained the mechanics driving next year’s revenue: preliminary local property valuations show about a $500 million gain in taxable value for the district — a near‑10 percent growth in the presentation — but staff warned many taxpayers may protest valuations, and the district will receive final values in July. The presentation noted the state has proposed an increase in homestead or other exemptions; staff said the state filled shortfalls in the past and they expect similar “hold harmless” treatment but will not assume it for budgeting.

Two state bills were the focus of discussion: House Bill 2 (the House funding proposal) and Senate Bill 260 (a Senate proposal discussed as a safety allotment). Staff said House Bill 2, if enacted as then drafted, would require 40 percent of new funding to be paid as salary increases for classroom staff and other certified groups and estimated the district’s share at about $9,400,000 (staff emphasized that figure depends on final enactment). For Senate Bill 260 staff said the proposal would increase the partially funded safety allotment and could add roughly $804,000 for the district in the next budget cycle if enacted.

Enrollment and fund balance: Staff reported average daily attendance (ADA) trending higher than the current budgeted enrollment; the presentation used an ADA projection of about 14,700 students for 2025–26 and said an additional 200 students would raise revenue roughly $2.0 million. On reserves, staff listed an unassigned beginning balance of roughly $65 million; after setting aside a TEA‑recommended three‑month reserve they showed approximately $43.4 million with about $12 million already committed to capital projects this year, leaving roughly $10 million available in that bucket for future projects.

Planned set‑asides and contingency funds included a $1 million reserve for anticipated rising medical claims (discussed separately in the insurance workshop) and about $500,000 to cover expected electricity/utility increases. Staff said any remaining unspent funds at year end would be used for salaries, benefits and stipends; the district prefers to save unspent funds to maintain flexibility and cover future mandates.

Capital projects and next steps: Staff briefed trustees on ongoing bond‑related and maintenance projects (track resurfacing, canopy work, athletic field improvements, roofing and HVAC attention). For tax‑rate timing, staff recommended adopting a budget in June but delaying final tax‑rate action until August to use final property values and to see whether any state exemption changes are enacted.

What the board did and asked: Trustees pressed for more transparent charts breaking the district’s full budget into major categories (transportation, maintenance, nutrition, extracurriculars) rather than only presenting instructional resource slices. Trustees asked staff to provide those breakdowns in future workshops. Several trustees also asked district staff to continue work on energy audits and possible efficiency savings at campuses.

Ending: Staff scheduled another budget workshop for June 23 and said they would update trustees in July with final property values and revised revenue assumptions.