The Pasadena Independent School District Board of Trustees on June 24 adopted the district's 2025–26 budget as presented and heard details of a proposed tax rate of $1.17 per $100 of assessed value, while district leaders said they will amend the budget in July after rulemaking under House Bill 2 is complete.

Dr. Tamika Alfred Stevens, the district chief financial officer, told trustees the district is forecasting total general fund revenue of $521,518,623 and projected expenditures of $551,120,722 under current law, creating a deficit of about $29,600,000. "This proposed budget does not include any compensation increases," she said, adding that the district will return in July to present a revised budget that incorporates any compensation changes required by House Bill 2.

The proposed total tax rate presented is $1.17: $0.83 for maintenance and operations and $0.34 for interest and sinking (debt service). Dr. Alfred Stevens said the figures reflect the district's current legal obligations and enrollment forecasts and that some costs were reduced through attrition and operational savings; she also told the board the budget as presented includes reductions of about $20 million in expenditures and approximately $2.8 million more in expenditure reductions plus $4 million in additional revenue.

An audience member asked whether the $20 million and $2.8 million reductions were already reflected; Dr. Alfred Stevens answered that those adjustments are already included in the deficit calculation. The board and finance staff noted that the Texas agency referenced in the presentation has acknowledged districts may need to amend budgets after HB 2 rulemaking, and that is Pasadena ISD's plan.

The board moved later in the meeting to adopt the 2025–26 budget. Trustees approved the adoption by voice vote with "motion carries" recorded; the meeting transcript does not list an individual roll‑call tally for the budget vote. The board also passed a GASB 54 fund balance resolution and monthly budget amendments at the same meeting.

District staff cautioned the board that the $29.6 million shortfall is a forecast under current law and that rebates, credits and the forthcoming HB 2 rule changes could reduce the deficit when staff return in July with a budget amendment. Dr. Alfred Stevens emphasized the legal requirement to adopt a budget before the July 1 fiscal year start, and the district's plan to update compensation figures once state guidance is finalized.

Trustees did not take a separate public vote on the proposed tax rate that evening; the presentation satisfied the hearing requirement tied to adoption timelines, and staff said any necessary tax‑rate proceedings and final actions will follow statutory notice and hearing requirements.

The board scheduled a July meeting window in which staff plan to present the amended budget that will reflect House Bill 2's compensation provisions and any updated revenue or expenditure items.