Brazosport ISD budget update: state allotments and improved fund balance ease 2025–26 outlook
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Summary
District finance staff reported stronger-than-expected state and local revenues, legislative changes under House Bill 2, and a projected year-end fund balance above the district target; staff cautioned figures remain preliminary until certified property values arrive.
Brazosport ISD finance staff provided the board an updated budget outlook for 2025–26, reporting higher-than-expected revenue mainly from state tax-credit and Chapter 313 receipts and projecting a year-end fund balance above the district’s optimum target.
The district reported average daily attendance (ADA) of 9,939 for the year, 147 students below the initial projection. Tax-credit revenue from the state increased the district’s actual receipts; staff said $9.5 million of that tax credit was transferred to the debt service fund. Local tax-collection projections were reported at $75.3 million (a decrease tied to the homestead exemption and tax adjustments) while Chapter 313 revenue projections were strong at $12.6 million.
Finance staff highlighted a set of legislative changes in the recent session, chiefly House Bill 2, that affect school finance. Noted provisions included a modest increase in the basic allotment, a teacher-retention allotment that provides $2,500 for teachers with three to four years and $5,000 for teachers with five or more years (but limited to classroom teachers), and a fixed-cost allotment of $106 per enrolled student to help cover noninstructional costs.
Annual revenue projections shown to the board put total district revenue near $125 million for the current year with an expenditure projection around $130.6 million, yielding a projected deficit of $5.5 million but better than earlier estimates. For the 2025–26 fiscal year the preliminary outlook shown to trustees projected total revenue of roughly $123.7 million and expenditures of about $118.0 million after planned reductions, producing a projected surplus of $5.7 million before any compensation changes. Staff said $5 million of forecasted reductions are one-time savings tied to a fiscal-year shift.
Staff cautioned that property values and tax calculations are preliminary: the district adjusted its estimates to reflect a proposed increase in the homestead exemption (from $100,000 to $140,000 in the presentation), which lowers taxable values and affects local collections and state funding formulas. The administration said final figures will depend on certified property values in July.
Board members praised past decisions to build fund balance, which staff said provided flexibility during recent lean years. The staff presentation included a budget-planning calendar and next steps for refining projections ahead of required adoption deadlines.
