Corsican ISD staff project $3.28 million 2025–26 deficit; district trims expenses and awaits final property values

At the July 2025 meeting of the Corsican Independent School District Board of Trustees, district staff presented a preliminary 2025–26 budget showing a projected deficit of about $3.277 million, staff said.

The update matters because the gap follows mandated pay increases and frozen federal grants and could affect staffing, programs and services when the board adopts a budget next month.

District staff told trustees they are using Region 12’s budget template for revenue estimates and that three federal grants are currently frozen; those freezes could add roughly $130,000 in payroll costs. The presenter said the district’s preliminary deficit is about $3.277 million, down from near $4 million at the prior presentation after the district cut roughly $500,000 from three account groups — contracted services, supplies and insurance — and used attrition to delete several vacant positions.

“Like, this entire team has done wonderful at looking at their stuff,” the district staff member said, adding that staff have been meeting with Region 12 and other colleagues to refine the numbers. “We’ve got about another month before we have to adopt it.”

Trustees were given detail on expense categories by function and by object. Staff said payroll is the largest driver of the increase: a roughly $1.9 million state-mandated raise accounts for most of the payroll growth, with an additional $400,000 in locally approved, unfunded raises. Utilities are forecast to rise by about $200,000 for 2025–26, staff said. The presenter described the insurance outlook as uncertain: the budget currently assumes a 10% increase in insurance costs but staff said some insurers were reporting flat or even lower rates in late spring, depending on regional claims experience.

Special education reimbursement was left at $0 in the current template pending clarification of how reimbursements will be calculated; staff told trustees that reimbursement could range from about $50,000 to as much as $200,000 if reimbursements are paid at roughly $2,000 per evaluation. The presenter said the district is being conservative in revenue assumptions until final property values are received in four days.

No formal budget adoption or vote occurred at the meeting. The board was told it has about a month before the legally required budget adoption deadline; staff said they will continue to adjust the preliminary budget as final property valuations and any changes to grant or reimbursement rules become available.

During the meeting the chair announced the board would adjourn into closed session, citing Texas government code as the authority for the closed meeting. No action was taken in open session on the budget at that time.