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Leander ISD adopts 2025–26 budget with $20.2 million deficit; officials cite lost state hold‑harmless funding
Summary
The Leander ISD board approved the 2025–26 general, child‑nutrition and debt‑service budgets, projecting a $20.2 million operating shortfall and citing changes in state legislation that cost the district roughly $10 million in expected funding.
The Leander ISD board of trustees adopted the district’s fiscal 2025–26 budgets for the general fund, child‑nutrition fund and debt‑service fund and set required program reserves after a budget presentation and public hearing.
The board adopted a proposed general‑fund budget that shows $460,647,784 in revenues and $481,230,162 in expenditures and transfers, producing a $20,232,378 deficit in 2025–26. In his presentation, district finance staff said the deficit reflects both rising costs and an unexpected loss of state “hold‑harmless” funding tied to House Bill 2.
“We feel we’ve come with a budget that best represents our priorities based on the funding that’s available,” said a district presenter during the public hearing. The presenter warned that Leander ISD was one of roughly 10 districts the legislature’s final language left without a previously expected hold‑harmless adjustment; the district staff estimated that omission reduced district revenue by about $10 million.
District staff outlined the projected effect of the 2025–26 budget on reserves. The presentation projected the district’s general‑fund balance would fall by roughly $20 million, from $161 million toward approximately $141 million, and warned that ongoing structural deficits could not be sustained long term.
The board approved required budget actions related to accelerated instruction funding. In presentation materials staff stated that $209,051 had been set aside to meet state statutory requirements for accelerated instruction funding; during the recorded motion the amount moved by a trustee on the record was $289,051. The discrepancy appears in the meeting record and the board approved the motion on the floor. The district did not clarify the difference during the meeting; staff told trustees they would provide follow‑up documentation.
Trustees asked detailed questions about payroll and central‑office costs, teacher pay scales under the new state legislation and the assumptions used in the district’s enrollment and property‑value forecasts. The presenter said the district’s enrollment assumption for the 2025–26 budget was 42,448 students and that local property values were projected to grow about 5.69% across Travis and Williamson counties.
The board voted to adopt the 2025–26 budgets as presented (board recorded vote: 6 in favor, 1 opposed). Trustees also approved the final 2024–25 budget amendment and the child‑nutrition plan to spend down excess fund balance as required by state rules.
District officials said they will continue to seek clarity from the Texas Education Agency and the authors of House Bill 2 and may revisit budget choices if additional state adjustments are issued. The administration also told the board it has started planning for deeper reductions and program changes for 2026–27 if legislative relief does not materialize.
