Socorro ISD presents preliminary FY 2025‑26 budget showing $7.8 million deficit; House Bill 2 funding may close gap

Socorro Independent School District staff presented the board a preliminary FY 2025‑26 budget on June 3 showing a $7.8 million projected deficit in the general fund and describing how recent state legislation could largely close that gap.

Mr. Solis, the district’s chief financial officer, told the board that House Bill 2 will “generate about 26,100,000 in new funding for our district,” but that roughly $17,900,000 of that total is restricted to specific uses under the law. “The silver lining is that a little more than 8,000,000 is available and may just be enough to help address the current shortfall in our general fund,” Solis said.

Solis reviewed the proposed operating budget and key assumptions: revenues projected to decline by about 3% because rising property values reduce state aid and because of a decline in student enrollment; expenditures projected to decrease by about 6% largely from staffing adjustments. He said district funding is roughly 60% state, 32% local (primarily property tax), and 8% federal. The proposed general fund reflects a $7.8 million deficit that the district expects to address as legislative funding and final property values are finalized.

He outlined key restricted and targeted allocations in HB 2: teacher salary increases limited to classroom teachers with three or more years’ experience; support‑staff salary allotments for nonadministrative positions; funding for utilities, insurance, transportation, payroll taxes and employee benefits; additional funds for early literacy, math and full‑day pre‑K. Solis said about $1,500,000 of the HB 2 allocation will cover payroll taxes and benefits arising from salary increases, and that early literacy and full‑day pre‑K dollars are fully restricted.

Solis provided additional budget details reported in the presentation: utilities run about $15,000,000 per year; the central appraisal district costs about $3,000,000; copier leases roughly $6,000,000 annually; roughly 86% of available general fund dollars (after the health fund transfer) are used for payroll and benefits; nearly 50% of district funds are invested directly in classroom instruction and related services. He said debt service includes two large payments—$38,300,000 in August and $15,800,000 in February—and that the district plans a defeasance to pay down part of its debt early.

The CFO walked the board through the budget calendar: publish required public notice June 14; public meeting to review and discuss the proposed budget June 24, followed by adoption that evening; receive certified property values July 25; submit local property value survey by July 31; tax rate workshop Aug. 20; publish tax‑rate meeting notice Sept. 7; public hearing Sept. 17 and adoption later that evening.

During public comment prior to the presentation, Philip Thomas Lane, a Socorro ISD resident from District 5 and a retired district employee, urged trustees to “think strategically” about the budget and its long‑term effects on students and taxpayers. He said the board’s choices will leave a legacy for students who are now in early grades and described his interest in ensuring strong value for property taxpayers.

Board members asked staff for clarifications on impact aid revenue, staff development spending, enrollment and funding calculation timing, child nutrition operations, the employee health fund, and the potential need for a voter‑approved tax‑rate election. Solis said the district will post the full presentation online, follow up with requested details, and convene budget workshops and committees to study compensation and health‑plan sustainability. The board did not take formal action on the budget at the June 3 workshop; the presentation was scheduled as part of the public process leading to formal adoption later in June.