Uvalde CISD budget workshop: district forecasts $42.6M revenue, flags $300,000 projected shortfall and unanswered state funding rules

Pam Benderly, division of business and finance staff, told the Uvalde Consolidated Independent School District board of trustees at a June 30 special meeting that the district currently forecasts about $42.6 million in total revenues and roughly $42.9 million in expenditures for fiscal 2024–25, narrowing a previously projected deficit from about $2.5 million to approximately $300,000.

Benderly said state legislative changes in House Bill 2 and new allotments created by that law will alter revenue and accounting for 2025–26 but left several implementation questions unresolved. "We are awaiting guidance on federally funded positions," Benderly said, describing uncertainty about whether state-directed teacher pay increases will reduce federal payroll charges or require split funding when a position is paid in part with federal grants.

The presentation summarized several items that will affect next year’s budget: an "ABC allotment" of $106 per enrolled student that Benderly estimated would yield a little over $400,000 based on an enrollment of 3,925 on the last day of school; a teacher compensation increase that could provide $4,000 for teachers with three to four years of service and $8,000 for teachers with five or more years; and a support-staff retention allotment of $45 per ADA, which Benderly estimated would amount to about $146,000 for non-teacher staff using a 3,260 ADA figure.

Benderly also said the legislature increased the basic allotment but reduced some Tier 2 funding, leaving the district with little net new recurring revenue. "They touted that they've given us new money, but we're not," she said. She warned that many details remain pending at the Texas Education Agency and that the district will not finalize 2025–26 assumptions until TEA runs near-final projections, typically in September.

Trustees pressed staff on practical impacts. Several trustees and members of the board’s budget committee emphasized attendance and PEIMS (the state's Public Education Information Management System) data as levers to increase revenue. Board members asked whether planned cuts could erode morale and cause departures among essential staff; Benderly and other board members said the administration has handled vacancies conservatively, replacing only positions that cannot be absorbed.

The board discussed the distinction between one-time sources of cash and ongoing revenue. Benderly said proceeds from selling district properties would provide a one-year boost but warned that those funds should generally be deposited into fund balance to address deferred maintenance and to rebuild reserves. She estimated the district’s fund balance would finish the year near $4.7 million and said the district’s recommended reserve level is about $11.5 million.

Board members and presenters flagged several other pressures: an expected large rise in electricity costs (Benderly said electricity may nearly double for next year), higher insurance costs on new facilities, and employer-side increases in benefits tied to teacher pay increases (Benderly estimated an approximately 10% employer cost on additional pay for TRS and other benefits).

On delinquent local tax collections, a board member said there were about $33 million in delinquent taxes as of 2024, and Benderly cautioned that state funding formulas and earlier legislative changes (House Bill 3) limit how much delinquent-tax recovery translates into net new revenue for the district.

Benderly identified next steps: complete the revenue template once appraisal information is available about the effects of Senate Bill 4 and Senate Bill 23 (homestead-exemption changes); finalize department and campus budgets reflecting the required 10% reductions; continue salary negotiations; and present a 2025–26 forecast to the board on or before July 10 so trustees can review it before the next meeting.

Why it matters: payroll accounts for roughly 80% of the district’s $42 million budget; unresolved state rules on how increases are treated for federally funded positions, plus rising utilities and insurance, could change next year’s gap. Trustees discussed balancing near-term cuts against the risk that reduced staffing or stipends could harm attendance and program delivery, which in turn would reduce state funding.

Benderly and trustees said the district will bring property appraisals and specific budget recommendations back to the board for decisions later this summer.