Bay City ISD trustees adopt 2025–26 budget, debate one-year ‘disaster’ tax pennies vs. voter-approved rate

Bay City ISD trustees adopted the district’s 2025–26 budget as presented following a public hearing and a prolonged discussion about how to address a looming deficit.

The board held a public hearing beginning at 6:15 p.m. and later moved to adopt the budget; the motion to "adopt the current budget as presented" was made from the floor by Trustee 10, seconded by another trustee, and passed 4–0.

The discussion before and after the vote focused on two options to increase revenue: the board can adopt up to 12 “disaster” pennies on the tax rate for one year without taking the measure to voters, or the district can seek a voter-approved tax rate that, as the board described it, would require a 60% supermajority at the ballot box to remain in effect beyond a single year. Board members and staff described the choice as between a guaranteed, temporary revenue stream and the risk of asking voters this November and possibly failing to reach the required supermajority.

District staff framed the decision as urgent. Staff said applying the 12 pennies immediately would provide revenue for the coming year and buy time to pursue longer-term solutions; they also said the disaster option would expire after one year and that, if the board wanted to keep the additional revenue beyond that year, it would need to seek voter approval later. Staff estimated the district would otherwise exhaust its fund balance, and warned next year’s budget would show a net negative position and that the district could be roughly $1,800,000 short if no additional action is taken. Board members noted about 70% of the district budget is payroll, and that cash-flow timing could make monthly operations difficult even if the year is net positive.

Trustees and staff discussed timing and outreach if the board chose to seek voter approval. Staff said the timeline would be tight: preparing for a November election would require immediate work, while the board would need to decide by late in the year (board discussion referenced “around Christmas” and May as key decision points) to meet planning and deadline constraints. Staff also told trustees a consultant would meet with district cabinet the next day and recommended conducting an efficiency audit to identify cost savings to present to the public if the district goes to voters.

Board members repeatedly framed the choice as “guarantee now” versus “risk it to the voters.” Several trustees said they wanted more internal and community conversations before committing to a voter referendum; one board member reported speaking with Miss Westmoreland, who expressed support for taking the 12 pennies now. Staff noted the board could adopt the disaster pennies when the board adopts the tax rate and that doing so would not require a public vote for that one-year measure.

The board also confirmed procedural points during the meeting: the public hearing opened at about 6:15 p.m. and closed at about 6:29 p.m.; the vote to adopt the budget occurred after the hearing; and the board said it would return in July with additional information and a demonstration of the planning tool used to model tax-rate scenarios. Staff committed to begin consultant work and to bring efficiency-audit results and more detailed timelines back to the board.

Less-critical items on the agenda included approval of consent items (Regions Group contractor services was listed on the consent agenda) and a notice that personnel matters could be discussed in closed session under Texas Government Code §551.074.

Next steps noted in the meeting record: the board adopted the 2025–26 budget 4–0; staff will meet with a consultant and pursue an efficiency audit; and trustees will decide whether to (a) adopt the one-year disaster pennies when setting the tax rate or (b) open a voter-approval referendum process, recognizing the latter requires more immediate outreach and carries the risk of failing to secure a 60% supermajority.