Keller ISD adopts lean $348.47 million 2025–26 budget with $150,000 projected surplus

KELLER ISD trustees on June 26 adopted a $348,468,553 budget for the 2025–26 school year, approving the plan 6–0 after a public hearing and staff presentation.

Dr. Allison, who presented the budget, told the board the proposal is tightly balanced and conservative because of ongoing uncertainty in state funding and recent changes under House Bill 2. The district projects a $150,000 surplus — roughly 0.004% of the total budget — and based the plan on assumptions that include an enrollment decline of about 450 students, average daily attendance of 94% and a $55 increase in the state basic allotment.

The budget covers the three funds required by statute: the general fund, debt service and child nutrition. Dr. Allison said the child nutrition fund is self-supporting and does not use general-fund dollars. The debt-service assumptions include maintaining the district’s current interest and tax schedule and leave open the possibility of bond refundings to lower interest costs; staff noted that defeasance and refunding actions to date have saved the district more than $20 million in interest.

Trustees heard that 86% of projected expenditures are for payroll and benefits. Dr. Allison said the district expects some additional state revenue tied to recent legislation, and that TEA guidance arriving in the summer and fall will require several budget amendments to realign funding and functions. He repeatedly cautioned that details and timing of some new state allocations remain unresolved; the district intentionally excluded amounts it has not yet received or for which statutory details are unclear.

On staff compensation, Dr. Allison summarized the district’s implementation of House Bill 2: teachers with three to four years total experience will receive an increase of $2,500 on the salary schedule and teachers with five or more years will receive $5,000. He said nonclassroom employees who were traditionally folded into the teacher pay scale — including librarians, diagnosticians, counselors and nurses — will be moved to a separate pay scale that mirrors the teacher scale but, because the state raises did not increase their base, those employees will receive their step increase plus a 3% salary increase. All other staff will receive a 3% raise.

Board members asked about the district’s revenue assumptions and potential upside. Dr. Allison told trustees the district expects additional state revenue in some areas and an incoming SHARS payment that, combined with later TEA reconciliations, could increase the surplus above $150,000, but he did not offer a firm amount beyond saying there are “a few million dollars” of potential but unspecified revenue to be confirmed by TEA.

Other adjustments in the budget include moving the district natatorium into a separate special fund so its revenue and expenses are tracked independently; Dr. Allison said that change reduces certain rent and tuition line items in the general-fund comparisons. He also reiterated that because of required reclassifications under HB2, some year-to-year percent changes in functions are not apples-to-apples and may appear misleading when compared to prior budgets.

Votes at a glance

- Consent agenda (routine items): motion passed 6–0. - Approval of the 2025–26 annual budget: motion passed 6–0.

The board chair called for no executive session and, following the budget vote, trustees adjourned. Dr. Allison and the finance team told trustees they expect to present budget amendments in coming months as TEA releases final guidance and district revenue reconciliations are completed.