Wichita Falls ISD trustees review conservative 2025–26 budget; staff to return revised plan in July

Ms. Morton, the district presenter for Wichita Falls Independent School District, told trustees the administration is proposing a conservative 2025–26 budget that assumes refined average daily attendance (ADA) of 11,100 and “no new revenue” from pending state bills.

The budget presentation lays out a balanced general operating fund, a planned $3.6 million deficit in the food service fund to spend down an excess fund balance, and a lower debt-service burden after a prior bond refunding. Ms. Morton told the board staff would bring back a revised budget and a compensation plan in July after certified property values and the finalized state funding template are available.

The proposal estimates local revenues (primarily property tax levy and local receipts) at about $41,000,000, state revenue at $91,800,000 based on current law, and federal program revenues at roughly $1,900,000. “So for the revenues for your general fund, this current fiscal year, we budgeted on 11,250 ADA, but this year, we're gonna budget on 11,100 going conservative on our funding,” Ms. Morton said.

Trustees were told the district expects the state to compress its maintenance and operations (M&O) tax rate by about 2 to 3 cents from this year’s 0.7011 to roughly 0.67–0.68; final tax-rate and debt-service calculations will follow certified values in July and be presented for board action in August. Ms. Morton also noted a November voter election on raising the local homestead exemption from $100,000 to $140,000, which would affect local taxable values.

On expenditures, staff said salaries and wages represent the largest share of the budget and that the proposal incorporates step increases but does not yet include a new compensation plan tied to recently proposed state allotments. “Because we have not seen exactly how much revenue we're going to get with the new bills that have been put into place, the staff retention allotment from the state. We do not have a compensation plan in here,” Ms. Morton said. The presentation indicates employer healthcare contributions budgeted to increase from $492 to $535 per month per employee.

Capital and maintenance items included in the proposal are several HVAC projects (Haynes, Fowler, West Foundation, Booker T. Washington, Brook Village), roof repairs (Franklin, Kerrigan, West Foundation, Shepherd), replacement of 3–4 maintenance vehicles, and energy-control upgrades at specified campuses. Transportation is budgeted for 2 regular routes, 4 activity buses, and continued payments for 6 special-education buses and 2 regular-ed buses. The district also budgeted for increases in property-liability insurance (approximately $500,000) and for filling security vacancies with contracted guards where certified peace-officer candidates cannot be found.

Food service is contracted with Chartwells and is budgeted under function 35 at about $12,327,000 for contract costs and the TDA plans presented previously. Ms. Morton said the Texas Department of Agriculture requires school food-service operations to maintain no more than roughly three months’ worth of expenditures in fund balance; because WFISD’s food-service fund balance exceeded that threshold, the district budgeted a planned deficit of approximately $3,600,000 to spend down excess reserves. “TDA says that we're only allowed to have 3 months worth of expended or expenses in fund balance. Anything above that, they require us to spend it down,” Ms. Morton told trustees.

On debt service, staff noted that refunding of 2015 bonds reduced the district’s debt burden relative to the prior year; the county will calculate the debt-service tax rate once July certified values are finalized, and staff will present recommended maximum compressed rates in the August board meeting.

Board members asked several clarifying questions during the presentation about ADA assumptions, declining enrollment trends and strategies to stabilize student counts, the timing for revised figures once legislation is finalized, and the mechanics of spending down the food-service fund balance. No formal motion or vote on adopting the budget was recorded during the presentation. Instead, staff requested board approval to adopt the budget as presented and to return with a revised budget and compensation plan in July based on finalized funding data.

Next steps identified by staff are: (1) await certified property values in July; (2) present revised budget and a compensation plan in July; and (3) present maximum compressed tax-rate options for board action in August. The board was also reminded of the November voter decision on the homestead-exemption increase that may affect local taxable values and state aid calculations.