Seguin ISD reports narrower 2024'25 deficit but projects larger 2025'26 shortfall; fund balance estimated at $27.4M
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Summary
Finance staff told the board that unaudited closing figures put the 2024'25 deficit at roughly $1.3 million, helped by a $1 million state protest win and underspending; projected 2025'26 deficit stands near $6.3 million after known costs and proposed compensation changes.
The Seguin ISD board heard a financial update showing improvements to the 2024'25 fiscal year closeout but a larger projected gap for the 2025'26 budget.
Liz Banks summarized an unaudited estimate that reduced the 2024'25 deficit to about $1.3 million, down from earlier figures, citing an unexpected $1 million adjustment from a Texas State Comptroller protest, payroll savings of roughly $1.7 million due to vacancies, and utility and security savings. "We had a deficit of $5,600,000," Banks said, recounting the earlier baseline; after the adjustments she reported the projected deficit for 2425 narrowed.
For 2025'26, Banks told trustees the district started with an approximately $5.8 million shortfall; added expenses including required QSA payments due Sept. 15, a roof deductible for central office damage and increased health insurance employer contributions pushed the projection to about $7.5 million. After identifying roughly $680,000 in additional budget savings and expected legislative revenue increases (the district estimates roughly $3.5 million, subject to verification), administrators estimated a working projection near $6.3 million but described that as conservative and subject to change when student counts and final TEA interpretations are available.
Banks also reviewed fund balance: an unaudited estimate leaves an end‑of‑year balance near $27.4 million, above the board's 25% minimum policy reserve (about $21 million). She reminded the board that auditors will present a final audit in October and that journal entries could still alter the numbers.
The consent agenda included approval of August budget amendments as part of routine items; trustees approved the consent package 7'0.
Ending: Administrators said the district will continue monitoring attendance, CTE funding and personnel costs — the three largest drivers of swings in state funding — and will bring updates to the board as TEA releases final guidance and auditors complete the fiscal closeout.