Roswell ISD adopts $147.5 million FY26 budget as district braces for rising fixed costs

The Roswell Independent School District board on June 10 adopted the districtFY26 operating budget after hearing a detailed presentation on revenue, cost drivers and fiscal risks.

The district projected total operational revenue of approximately $147,500,000 for FY26 and recommended the board adopt a budget built on that estimate. "I recommend approval of the fiscal year 25 26 RISD fixed operating budget," said Mr. Sexton, a staff member who presented the plan to the board.

The presentation said the state equalization guarantee (SEG) remains the primary revenue source and that the FY26 unit value increased to $6,801.35, helping lift projected SEG to roughly $124 million. Officials also said the legislature provided one-time and recurring appropriations through HB2 and that House Bill 3 changed cost differentials for some grade levels, increasing program units for secondary students.

Board members pressed staff for detail on major cost pressures. A board member asked about the growth in unit value and whether the resulting revenue primarily flowed to pay and benefits; the presenter agreed. A question on employee health coverage prompted the reply, "It's through the state and it's through the state. Okay. NPSSIA." The presentation flagged a projected 9.95% rise in medical insurance premiums and a 16% rise in workers' compensation as nondiscretionary cost increases.

Staff described the district's budgeting approach as revenue based and incremental, with more than 77% of FY26 expenditures devoted to salaries and benefits. The budget allocates $87.6 million for instructional services, nearly $21.9 million for operations and roughly $14.5 million for support services such as counseling and special education. The presenters noted that some one-time revenues that supported FY25 were not available for FY26.

Board members also questioned how reserves were shown in the budget. Staff said a reserve-like line for maintenance and supplies (about $8.5 million) is centrally held and would be allocated to schools based on need. "That 8,500,000.0 will not be allocated. It will not be... It sits here. And then it's allocated from here based on needs," a staff member said.

After discussion the board approved the FY26 budget by voice vote.

The board and staff noted risks to the plan, including declining enrollment (which reduces SEG), final outcomes of collective bargaining for compensation, and rising fixed costs the district cannot easily control. The administration said it will monitor assumptions and report back to the board during the fiscal year.

The adopted budget includes separate projections for transportation, local revenue and capital funds and reflects voter-approved bonds and state-matching capital allocations to support long-term facility projects.

Board members asked for ongoing updates on enrollment and cost drivers and for transparency on the use of centrally held dollars.

The board adopted the budget and the administration will implement and monitor it through FY26.