Laredo ISD workshop: House Bill 2 increases aid but district still faces $6.9M shortfall; trustees weigh set-aside and pay proposals

LAREDO June 2025 — Laredo ISD officials briefed the Board of Trustees on the districtbudget outlook under changes in state school finance (House Bill 2) and a set of proposed compensation changes, but said final coding guidance from the Texas Education Agency (TEA) is still pending and will affect how new state allotments are applied.

Chief financial staff and human-resources leaders told trustees the districtestimates the teacher-retention allotment in House Bill 2 will generate about $6.1 million for the district, and a new support-staff retention allotment (calculated at $45 per adjusted ADA) will generate roughly $721,125. An additional "basic costs" allotment (ABC) was identified as a new source that could be applied to near-term insurance funding, with an estimated $2.1 million available under current HB2 assumptions.

Despite those increases, the districtpresentation showed a projected budget shortfall of about $6.9 million under current-law reporting assumptions if trustees do not make offsetting choices. CFO Marcela Ayala told the board: "We are recommending that we publish the notice based on current law." She said that recommendation was to preserve flexibility while awaiting…