McAllen ISD trustees review draft 2025–26 budget, discuss raises, staffing and state legislative risks

McAllen ISD trustees and district administrators on Tuesday reviewed early figures for the 2025–26 budget, including payroll savings of roughly $11 million, possible salary increase scenarios and proposed repurposing of vacancies to create campus and program positions.

The presentation, led by Gloria Garcia, deputy superintendent for business and operations, outlined a $273 million 2024–25 baseline, one-time costs already charged to the fund balance and a range of estimates for new revenue and savings that the district expects to finalize before the budget is adopted in June.

The budget matters because McAllen ISD faces both internal choices about staffing, stipends and raises and external uncertainty tied to state legislation that could shift funding flows. "Priority number 1 is that we're not going to lay off employees," said Doctor Gutierrez, who framed sustaining programs, avoiding layoffs and continuing salary increases as the board's top priorities as the district plans the next biennium.

Administrators told the board they have identified nearly $11 million in payroll savings driven in part by unfilled positions and schedule changes at the secondary level. Garcia said the district ended the prior year with a $35 million increase to fund balance and projected an additional increase this year in a range she presented as roughly $11 million to $16 million under current assumptions. Garcia said the district's unassigned general fund balance represents about 135 days of operating expenditures, above the 75-day benchmark the presentation cited.

Garcia described a number of one-time and recurring items that affected the current-year balance: a $4.5 million contribution for raises, a $1.6 million one-time retention incentive ($600 per employee), a hardware lease for staff laptops of about $1 million, storm-damage proceeds, and the sale of the Bonham property with net proceeds reported at $892,780. She also said a recent credit-card rebate was about $111,000. Some state reimbursements were described as netting out to the district, including amounts tied to teacher incentive allotments.

On compensation scenarios, Garcia presented preliminary estimates for districtwide increases: a 2% across-the-board increase would cost about $3.9 million; 3% about $5.9 million; and 4% about $7.9 million. Trustees asked for more detailed scenarios tying specific options to line-item impacts.

Administrators also proposed repurposing vacancies to add school bookkeeping positions at select middle schools, a middle-school mariachi teacher who would also assist high schools, and other specialist roles. Garcia said stipend adjustments and new stipends were draft recommendations and would be refined in future workshops; the board asked staff to return with a compensation draft at the March workshop.

Enrollment and attendance figures featured in the discussion. District enrollment was described as about 19,890 students with roughly 2,554 out-of-district transfers; administrators noted transfer activity helps revenue because McAllen ISD accepts open transfers. The district described the optional flexible school day program as one mechanism that increased average daily attendance and recaptured roughly $1.4 million in additional state aid the presentation said.

Trustees and staff also spent time on the legislative update. Garcia and the superintendent flagged several pending bills that could affect revenue and tax rules: a voucher proposal referenced as Senate Bill 2 (education savings accounts), measures affecting homestead exemptions and tax compression cited as Senate Bill 4 and related senate proposals, and other bills mentioned in the presentation including SB 409, House Bill 1542 (special education transportation rate) and HB 250 (restrictions on planned defeasance and disaster pennies). Garcia cautioned the board that the legislature's final actions, expected after the session concludes, could change the district's final revenue picture and any adopted budget might later require amendments.

Trustees urged continued focus on people, with several members asking for follow-up analysis on the secondary master schedule that reduced planning periods and on targeted steps to improve stipends for fine arts, special education and athletic trainers. Trustee comments included requests to quantify the staffing impacts from schedule changes and to return with costed options for restoring planning time where possible.

Votes at a glance: the workshop concluded with a motion to adjourn moved by Trustee Reynaldo and seconded by Trustee Gala Garza Lopez; the board voted to adjourn (5-0) at 6:55 p.m.

Fiscal and policy decisions remain in draft form; staff told the board they will return with refined compensation scenarios, stipend proposals and detailed staffing counts in coming workshops leading to a final budget adoption by June.