Socorro ISD CFO warns enrollment drop, outlines revenue mix and timeline for 2025–26 budget planning

Chief Financial Officer David Solis told the Socorro ISD Board of Trustees on Wednesday that the district is preparing budget projections for fiscal 2025–26 amid continued enrollment declines and shifting property values.

Solis told the board that Texas school districts receive funding from three main sources — state, local and federal — and that state funding is tied to average daily attendance. “State funding is directly tied to student attendance,” David Solis said, explaining the district’s reliance on those metrics.

The nut graf: Solis said the district has moved from multi‑year growth to recent declines; the district averaged pre‑pandemic annual gains of about 600 students but has averaged annual declines of roughly 650 students recently. “This year enrollment dropped by approximately 630 students compared to the previous year and we are projecting a further decline of about 770 students for the next school year,” Solis said.

Solis walked trustees through tax‑rate distinctions, explaining that the maintenance and operations (M&O) portion funds day‑to‑day services and the interest and sinking (I&S) portion repays debt from voter‑approved bonds. He noted the district’s M&O rate has been compressed since House Bill 3 and that total tax rates have fallen even as property values nearly doubled since 2016.

Solis reviewed the Texas Comptroller’s biennial revenue estimate of $194.6 billion for 2026–27 and said the legislature faces competing priorities — property tax relief, special education funding and teacher pay increases among them. He cautioned the board that the district will prepare its budget based on current law and will update projections if the legislature enacts changes. “What we are planning on doing is providing or estimating the budget based upon current law,” he said.

The CFO said trustees should expect a preliminary, thorough budget workshop in March with revenue estimates presented in February. “So next month we’ll present our preliminary revenue estimates. In March, we should be able to provide you with a full budget outlook,” Solis told the board.

Trustees asked about alternative state revenue streams and teacher incentive allotment opportunities; Solis said the district is working with the Center for School Finance to review possible additional funding sources and will present options at future workshops.

The board received the presentation for planning and did not take formal action on the budget at the meeting.