The Judson Independent School District Board of Trustees on Tuesday adopted a proposed 2025–26 budget showing an estimated $37,000,000 deficit and approved a set of planned expenditures over $50,000 for multiple departments as the district moves into the new fiscal year.

Board members approved the budget after a finance presentation laying out the district’s timeline of budget workshops and reductions. The budget presentation said staff and consultants reduced an initial April estimate of about a $47,000,000 shortfall to roughly $37,000,000 through cuts and staffing adjustments.

The finance team told trustees the district expects new state funding under House Bill 2 of about $5,700,000 but faces a possible shortfall from the district’s self‑funded insurance plan that administrators estimated might be about $4,800,000; finance staff said that figure is a conservative placeholder pending final numbers. With the assumptions used in the presentation — including an anticipated fund balance of roughly $80,000,000 — the district’s fund balance would fall to about $44,000,000 under the $36–37 million deficit scenario shown to the board.

Trustees also reviewed three legally required budgets: the general fund, child nutrition fund and debt service fund; administration said the child nutrition fund will run a planned spend‑down and the debt service budget is balanced after defeasances and refundings. The budget the board adopted is based on current law; administrators provided additional columns showing revenue scenarios if the district kept the tax rate the same or used the full 8.5 cents allowed under statute. Board members discussed timing for implementation of employee insurance changes and said staff will return with details on a proposed move from a self‑funded to fully insured plan.

After questions and discussion, Trustee José Macias moved to approve the proposed 2025–26 budget and Trustee Suzanne Conoyer seconded. The motion passed unanimously, 7–0.

Administrators told the board they will return in July with follow‑up figures and implementation items, including more detail on which reductions take effect in 2025–26 versus being deferred to later years and a clearer accounting of how House Bill 2 funding will be allocated to staff compensation. Trustees also approved multiple departmental purchase lists (technology, maintenance, transportation, child nutrition, special education, athletics, fine arts and federal programs) so departments can proceed with contracts and purchases tied to the new fiscal year.