Round Rock ISD trustees hear shifting 2024–25 update and preliminary 2025–26 budget scenarios as Legislature alters funding

The Round Rock Independent School District Board of Trustees received an update on the district’s 2024–25 financial position and preliminary scenarios for the 2025–26 budget at its regular meeting, where staff warned the picture is still in flux because of recent legislative action.

Dennis Covington, the district’s chief financial officer, told trustees the latest review raised projected investment income to $4,500,000 from an earlier $4,000,000 estimate while state revenue “dropped just a little” after updated state runs. Covington said the district has identified $2,547,000 in position vacancies and redirects in 2024–25, and that reclassifying some capital and bond-eligible expenditures reduced the current-year gap: “Back on February 25 the surplus/deficit first red line was $8,000,001.91. Due to the changes I just highlighted, it is now down to $4,000,003.22,” he said.

Why it matters: the state budget and recently passed school finance bills remain the largest single uncertainty for the district’s next fiscal year. District staff emphasized they must produce a legally balanced budget and are modeling multiple outcomes so trustees can act in time to adopt a 2025–26 budget by the June statutory deadline.

Covington walked trustees through three preliminary 2025–26 scenarios. One run assumed the House Bill 2 (HB2) provisions as they were initially drafted and produced a projected revenue increase of about $21.3 million; Covington cautioned that amendments adopted in subsequent floor action will change the final numbers and that reconciliation and administrative guidance are still pending. He also described other possible legislative changes that could affect revenue, such as a revised special‑education intensity funding model and a school‑safety allotment proposal under separate bills.

On the expenditure side, Covington said the district added personnel for special education, dyslexia and bilingual programs after identifying increased student needs: 16 teachers and 24 education assistants for special education, seven additional educational assistants for emerging bilingual services, and 11 teachers for dyslexia services were noted in his presentation. He detailed non‑personnel savings—including cuts to portable expenses, appraisal fees and fuel—that partially offset new obligations.

Superintendent Dr. Yassin Aziz and trustees pressed staff on the mechanics and risks of shifting certain operational charges to bond proceeds now that voters approved the 2024 bond. Covington said bond counsel reviewed reclassifications and that the district may reclass eligible costs paid after the bond’s effective date back to bond funding, reducing the general‑fund burden for certain capital and construction‑related expenses.

Board members highlighted two follow-up needs: clearer public explanations of which expenditures were moved to bond funding and more modeling of compensation scenarios once the Legislature finalizes HB2 language. Covington noted the district will bring revised preliminary scenarios on May 8, the superintendent’s proposed budget (including compensation recommendations) on May 15, a budget workshop May 29, and must adopt a balanced 2025–26 budget by June 17.

Ending: Trustees accepted the update for discussion; no formal budget decisions were made at the meeting. Staff said they would return with revised runs after additional state guidance and finalize a compensation recommendation in mid‑May.