Keller ISD previews tighter 2025–26 budget as state HB2 reshapes school funding

Keller ISD Interim Superintendent Dr. Wilson on Thursday previewed a proposed fiscal 2025–26 budget that administration officials described as balanced but narrowly so, and said changes in state law (House Bill 2) will leave local revenues and district spending authority uncertain until the Texas Education Agency issues more guidance.

Dr. Wilson told the board that "the final version of HB 2, the public education funding bill, has been signed into law," and that while the bill provides a teacher compensation allocation, it "does very little offset inflationary costs" for the district.

The district's finance team presented a high‑level revenue and expenditure view. Staff estimate the state allotment for teacher compensation will cover roughly $8.4 million of intended raises but that the full cost including benefits will be about $9.8 million; the district would absorb the remaining difference. The administration also described a $106 per‑student fixed cost allotment estimated to yield about $3.3 million, a $45 per‑student allotment for non‑classroom staff worth roughly $1.1 million to Keller ISD, and an increase in special education funding that will move to an intensity‑based model in 2026–27.

John, the district finance staff presenting the figures, said the proposed budget before the board "is a balanced budget. It's 340, 8,000,318" and cautioned the board the numbers are conservative because the state has not finalized implementation details on the bill's hold‑harmless provisions and other formula changes. Dr. Wilson said the district will present a final budget for board approval at a special meeting on June 26.

Administrators warned the board the way the hold‑harmless mechanism for local property tax changes is implemented will materially affect Keller ISD's revenue outlook. Dr. Wilson said that, in the district's analysis, removal or alteration of the hold‑harmless approach would have reduced the district's maintenance and operations revenue by roughly $3.6–$3.8 million in prior modeling.

Board members and staff said they expect several budget amendments this summer as TEA and local appraisal offices release final numbers and guidance. The administration told trustees they have planned a conservative starting budget and will update it when state and appraisal figures are certified.

The board did not vote on the budget at the meeting; the administration will return with a formal adoption request at the June 26 special meeting.