NORTH EAST ISD board adopts 2025–26 budgets; tax rate decision deferred

The NORTH EAST Independent School District Board of Trustees adopted the district’s 2025–26 budgets for the general fund, debt service fund and school nutrition services fund after a public hearing on June 19, approving the budgets by a 7–0 vote.

The adoption comes at a public hearing required by state law; trustees approved total appropriations while noting that the district will set the property tax rate later this summer once the Texas Education Agency (TEA) issues the district’s compressed maintenance-and-operations rate. "We may not adopt the tax rates before we adopt the budget," said Susie Slackhorn, the staff presenter, adding that TEA typically assigns the maximum compressed rate in late July or August.

Trustees and staff said the district’s proposed 2025–26 budgets reflect modest changes in property values and recent state legislation. Slackhorn presented the three funds: a general fund with estimated revenues of $584,000,000 and total appropriations of about $625,000,000; a school nutrition budget with revenues and appropriations of $40,000,000; and a debt service plan with $400,000,000 in revenues and appropriations. Slackhorn said approximately 61% of district revenue is estimated to come from property taxes and about 29% from the state. Instruction-related functions make up the largest share of appropriations, she said, including about $400,000,000 for instruction and instructional-related functions (roughly 66% of the budget) and another $45,000,000 for instructional leadership.

Staff noted a recent change affecting meal pricing: the state will cover the reduced-price breakfast, allowing the district to drop the previously planned 30-cent charge for reduced-price breakfasts. "The state's going to pick that up," Slackhorn said, confirming the change applies across schools and grade levels.

Board members asked clarifying questions about the meal pricing and about timing for the tax rate; Slackhorn and staff reiterated that the district must wait for TEA’s compressed rate and for certified property values before adopting a tax rate. The June 7 public notice included figures computed under previous law; staff said differences between the published notice and the adopted budget stem from legislative updates passed since that notice was printed.

A motion to adopt the 2025–26 budgets for the general fund, debt service fund and school nutrition services fund was made, seconded and approved by a 7–0 vote.

The board and staff said they will return in September or later this summer to adopt a property tax rate after receiving TEA’s compressed M&O rate and certified property valuations. The hearing record shows the board followed the Texas Open Meetings Act for the public hearing and adoption process.