McAllen ISD adopts $281.06 million budget, sets 0.9638 tax rate; board favors May 2026 bond timing

The McAllen Independent School District Board of Trustees on June 24 adopted the district’s fiscal-year 2025–26 budget, approved an amendment to the current fiscal year’s budget and discussed timing options for a possible bond election after receiving a facilities-needs update from financial advisers.

At a public hearing at the start of the meeting, Deputy Superintendent for Business and Operations Lorena Garcia reviewed the proposed 2025–26 budget and the district’s tax-rate history. Garcia said the district used an average daily attendance (ADA) projection of 17,685.65 and a proposed tax rate of 0.9638. The district’s notice showed that on a $255,000 home the proposed rate would lower an average taxpayer’s bill by about $32.37 compared with the prior year’s levy.

Garcia presented a fund-level summary and explained that the proposed total budget for 2025–26 is $281,061,772, consisting of a $265,565,375 general fund, $13,902,390 for debt service and $1,594,007 for capital projects. She said payroll represents the largest share of the general fund at about 81.99% and that the proposed budget is essentially balanced; it included a modest planned use of fund balance to cover increased raises and other expenses.

The board also approved a June 2025 amendment to the 2024–25 fiscal-year budget. The amendment recorded additional revenue items (including an increase in projected interest income the district estimated at approximately $2.4 million and a storm claim payment of $349,372) and reallocations on the expenditure side. Notable amendment entries included: booking a three‑year lease purchase for staff laptops (the revenue and matching expenditure entries total about $2.9 million across three years), a $100,000 transfer from fund balance to transportation for overtime and preventive maintenance, a $1,000,000 transfer into the health fund, a $1,100,000 debt-service payment into the maintenance tax-note fund (Fund 197), and a $165,900 capital-projects entry for engineering services at McAllen Veterans Memorial Stadium.

The board approved the final 2024–25 budget amendment on a motion by Trustee Pena, seconded by Trustee Delagarza Lopez; the motion passed 7–0.

Later in the meeting trustees moved to adopt the 2025–26 budget. Trustee Rivera moved approval of the accelerated-instruction fund allocation ($181,411); Trustee Regalado seconded and the motion passed 7–0. Trustee Veda then moved adoption of the general fund, debt service and capital projects budgets (total $281,061,772); Trustee Pena seconded and the motion passed 7–0.

On facilities and bond timing, the district’s financial adviser Miguel De Los Santos told trustees the board must decide whether to target a November 2025 or May 2026 election; staff recommended returning to the district’s original plan of May 2026 to allow more time for detailed facility studies, town‑hall meetings and community engagement. De Los Santos noted that a November bond would require an August deadline to call the election, while a May election gives staff more planning time. Trustees expressed support for a May 2026 timeline to allow additional community work and to wait for updated property‑value information from the state, including the newly legislated $40,000 homestead exemption that will reduce taxable values.

Trustees also approved other items during the meeting that affect district operations (see “Votes at a glance” below). Board members acknowledged the district’s relatively strong fund balance but cautioned that the new homestead exemption and property‑value adjustments could reduce the district’s future tax base and bond capacity.

Votes at a glance (selected formal actions taken June 24): - June 2024–25 budget amendment (agenda item 6): approved 7–0; mover: Trustee Pena; second: Trustee Delagarza Lopez. - 2025–26 compensation plan (agenda item 7): approved 7–0 (see separate article). - Adoption of FY2025–26 accelerated instruction funds allocation ($181,411): approved 7–0; mover: Trustee Rivera; second: Trustee Regalado. - Adoption of FY2025–26 total budget ($281,061,772): approved 7–0; mover: Trustee Veda; second: Trustee Pena. - Donation: James "Nicky" Rowe High School boys basketball booster club donation of $16,500 to remodel locker room: approved 7–0. - Opt out of homeschool student participation in UIL activities (per new state law): approved by record/roll-call vote 7–0. - RFP approvals and contracting authority (digital marquee displays; emergency ambulance standby services; depository banking services): board approved rankings, negotiation authorizations and delegated contracting authority; most motions passed unanimously, one depository services award recorded 5–0 with two trustees recused (recusals noted in board minutes).

What happens next: Administration will implement the approved 2025–26 budget and the 2024–25 amendment, proceed with scheduled payroll and project allocations, and continue the facilities needs assessment with MGT and bond counsel ahead of a likely May 2026 bond-election timeline. Financial staff warned that the upcoming $40,000 homestead exemption will lower taxable values and could reduce bond capacity; the board asked staff to refine capacity estimates once final property-value data are published.