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Mercedes ISD CFO lays out 2025–26 budget assumptions, says House Bill 2 raises teacher pay while district still projects a ~$993,700 deficit
Summary
Sylvia Garza, Mercedes ISD chief financial officer, presented the district’s 2025–26 budget assumptions and said recently passed House Bill 2 will increase state funding for teacher raises and other allotments; the district presently models a nearly $993,698 deficit under current assumptions.
Sylvia Garza, chief financial officer for Mercedes Independent School District, told the board during a special workshop that House Bill 2 will bring new state funding and that the district is modeling multiple compensation scenarios while preparing a conservative 2025–26 budget.
Why it matters: HB2 changes funding formulas and adds allotments the district expects to use for sustained teacher raises and other supports; at the same time the district is planning conservatively and currently projects a general-fund deficit of $993,698 for 2025–26 under the assumptions presented.
Garza summarized HB2 and its local implications: she said the bill was passed and signed by Gov. Greg Abbott on June 4, 2025, and that it includes billions in additional school funding, increases to the basic allotment (the presentation cited an increase in the basic allotment), new or adjusted allotments for teacher compensation and for special education, and changes that fold the school safety allotment into Foundation…
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