McAllen ISD budget workshop lays out shortfall, House Bill 2 changes and $3.1M in proposed capital work

McAllen Independent School District officials on Wednesday presented a proposed 2025–26 budget built on current law and the district’s latest assumptions while flagging a roughly $8.9 million worst‑case gap that may be narrowed by new state allocations from House Bill 2.

The district’s chief financial presentation, led by Joel Garcia, chief financial officer, showed estimated revenues under current law of about $96.2 million in local revenue, $130.2 million in state revenue and $26.7 million in federal revenue. Garcia said the budget used an average daily attendance (ADA) assumption of 17,685 students, a decrease of about 32 students from the current year.

Why it matters: administrators said payroll is roughly 75–80% of district spending and that recurring salary and benefit increases are the largest drivers of the shortfall. The board will adopt a budget and publish notices on a June timeline required by the Texas Education Code.

Key budget items and costs presented

- Salary models and teacher compensation: the presentation showed several salary‑increase scenarios (2%, 3%, 4%) and estimated costs. The slide deck also included the proposed teacher retention increase tied to legislative action; administration warned that final costs will change pending TEA guidance on…