Northside board approves $5M maintenance budget amendment as district faces large projected deficit

The Northside Independent School District Board of Trustees on March 25 approved a $5 million budget amendment to the maintenance and operations budget to cover higher contracted‑service costs, inflation on parts and equipment, and rising repair needs. Trustees approved the amendment by voice vote after staff said the funding is needed to maintain campus services through Aug. 31.

Megan Bradley (Northside business/finance staff) told trustees the amendment addresses three trends: higher cost to staff vacancies with contractors, inflation raising unit costs for maintenance parts and equipment, and increased maintenance demand at campuses. "This budget amendment will add $5,000,000 to the expenditure budget but we do believe it will get us all the way through August 31," Bradley said. Trustee Saldanha moved the amendment and the motion was seconded and carried by voice vote.

District leaders used the same meeting to present a broader FY26 budget outlook that projects a sizable operating shortfall. Superintendent Dr. Brian Kraft and finance staff said last year’s realized deficit was roughly $38.6 million and that, based on current assumptions and pending legislation, the draft FY26 budget could show a deficit in the order of $100 million. "We are not going to be provided the adequate resources to close what you will see next year — upwards of a hundred, possibly a little over a hundred million dollar deficit," Kraft said.

Staff outlined near‑term budget levers intended to reduce the gap while protecting jobs, including modifying staffing ratios used to allocate classroom teachers. Proposed ratio adjustments discussed in the meeting included: pre‑K through grade 4 moving toward a 25:1 target; grade 5 toward 26:1; middle school averages moving from about 25.25 to 26.5; and high school averages moving from about 26.5 to 28. Staff said those figures are budgetary formulas used to produce campus allocations and that implementation would be pursued with attention to certification, program needs and campus context.

Maintenance director Jacob Villarreal described specific cost pressures behind the $5 million request. He cited a rise in HVAC unit and ceiling tile prices since pre‑COVID levels (example: certain portable HVAC units rising from about $3,500 to $5,500) and a sharp increase in contracted plumbing calls driven in part by vaping devices flushed into campus plumbing. "We have spent up to $180,000 on remediation to date related to vapes," Villarreal said, and projected plumbing contracted‑service needs could approach $537,000 this fiscal year. Bids for recurring services (fire alarms, sprinklers, elevators, mowing) also returned materially higher prices, staff said.

Finance staff emphasized the district has used a designated "continuity of instruction" fund balance and ESSER funds to offset prior deficits but those sources are expiring. The board scheduled follow‑up budget discussions and a called finance meeting for April 8 to dive deeper into FY26 assumptions and staffing scenarios.

"Our objective is to protect the integrity of programming and protect jobs," Kraft told trustees. "It may look a bit different next year, but we will work to make corrections and be more efficient across district services." The board approved the $5 million amendment; staff said they will continue efforts to reduce the projected deficit and return with additional budget proposals.