Huntsville ISD approves $115.34 million budget, holds tax rate at $0.8548 per $100

The Huntsville Independent School District Board of Trustees on Thursday approved the district’s 2025–26 budget and adopted an unchanged tax rate of $0.8548 per $100 of valuation.

The board approved a general fund budget of $115,342,161, a debt service budget of $7,793,701 and a food service budget of $5,426,610. Trustees voted unanimously to adopt the budgets and the tax ordinance, keeping the maintenance and operations rate at $0.7098 and the interest and sinking rate at $0.145 per $100.

The budget hearing and vote matter because the plan funds district operations, employee compensation and capital debt service while preserving a balanced general fund, Superintendent Dr. Shepherd said during the meeting. The administration emphasized that the budget incorporated legislative funding changes, district savings and targeted investments in staff pay and facilities.

Paul Brown, a district staff member who presented the budget, said the district built the plan assuming a slightly higher average daily attendance and additional state revenue from the recent legislative session. Brown told trustees the district projected $115.3 million in general fund revenue, $7.8 million for debt service and $4.1 million for food service in earlier slides shown during the public hearing. He described the general fund and debt service budgets as balanced and called the food service budget an intentional deficit to support cafeteria upgrades and meet Texas Department of Agriculture fund-balance requirements.

Board materials and Brown’s presentation listed these key budget elements: - General fund: $115,342,161 (balanced) - Debt service: $7,793,701 (balanced) - Food service: $5,426,610 (deficit, for planned cafeteria upgrades and TDA compliance) - Projected total revenues (presentation slide): approximately $127.2 million (general fund, debt service and food service combined) - Instruction/instructional support: 72% of expenditures

Brown and Dr. Shepherd said the district used the Walker County Appraisal District certified values and Texas Education Agency (TEA) estimates to set revenue projections. Brown noted a decrease in taxable property value stemming from expanded homestead exemptions: the district increased the homestead exemption from $100,000 to $140,000 and the over-65 exemption from $110,000 to $200,000. The administration presented an example that average school property taxes would be lower in 2025 for a typical homeowner because of those exemptions.

The budget includes a districtwide compensation increase described by the administration as $4 million in added compensation, marking the ninth consecutive year of district pay raises. Presenters said the district raised rookie teacher starting pay to $52,000, increased ranges on the teacher salary schedule, provided a $500 stipend for full-time employees in November and a $215 stipend for part-time employees.

During trustee remarks, members praised the work of the finance and administrative teams in developing the budget amid a compressed post‑legislative timeline. No public comments were offered during the budget hearing portion of the meeting.

The board’s formal vote on the 2025–26 budgets and the tax ordinance passed unanimously with all trustees present voting in favor. The board had one member absent for the meeting (Trustee Owens). The administration recommended adoption of the numbers presented in the meeting packet and Brown’s budget presentation.

Looking ahead, Brown and district staff indicated the district will continue to monitor TEA settle-up and certified valuations, which can affect future funding and budget adjustments.