Manor ISD board adopts balanced 2025–26 budget, approves 2024–25 amendment

The Manor Independent School District Board of Trustees unanimously adopted a balanced budget for the 2025–26 fiscal year and approved a final amendment to the 2024–25 budget during its regular meeting, the board confirmed by roll call vote.

The decisions matter because district finance staff and trustees said Manor ISD has seen a sharp decline in its operating fund balance and will rely on short-term borrowing this year while working to rebuild reserves. Board members voted 7-0 to adopt the 2025–26 budget and to adopt the 2024–25 budget amendment.

District finance presenter Moises Santiago told the board the district established a “16.4 threshold, meaning 60 days of the fund balance” as a target for financial sustainability and showed that the district’s fund balance had declined in recent years. Santiago presented the district’s current revenue and expenditure picture and warned that the district had authorized short-term borrowing earlier in the year to shore up cash between July and November.

“This borrowing is necessary to meet those operating needs between this time period where we do not generate, any revenues or very minimal revenues, but our expenditures continue,” Moises Santiago said during the budget presentation.

Santiago said the board authorized borrowing of $33 million last month to cover operating needs for the July–November period. He recalled a smaller note the district authorized and repaid last fall — $13,100,000 — which he said was paid off in three months and saved about $89,000 in interest. The new note carries a quoted rate of 3.75 percent; Santiago estimated a rough total interest cost of about $200,000 if the note were held six months and acknowledged additional fees such as origination and attorney costs could raise the total cost of borrowing.

Santiago reported the district had realized roughly 90.9 percent of budgeted revenues as of the end of May (about $91,300,000) and that expenditures had increased year over year. He estimated the district’s end-of-year operating cash balance could be in the $4.9–$5.0 million range — a large decrease from prior years and equivalent to only a few weeks’ operating reserves.

On the 2025–26 budget, administration presented a proposed expenditure budget of $100,916,605 matched to projected revenues, which the board adopted as a balanced budget. The administration said the budget is conservative, built on preliminary property values and current state law, and that it contains no assumptions about additional state funding beyond current legislation.

Superintendent Dr. Sarmani (first reference uses transcript styling) and finance staff said they will return with more detailed personnel allocations and other line-item amendments as staff finalizes placements and as the district receives certified property values. Trustees were told the board will revisit an amended budget in August to reflect updated guidance from the state and finalized revenue numbers.

Trustees praised administration and staff after the vote. Board members and district leaders said work remains to rebuild the district’s fund balance and avoid repeated short‑term borrowing.

Ending: Administration told the board it will present additional detail and proposed amendments before the August meeting so trustees and the public can review the specific allocations and any required adjustments once revenue certainties and state rule guidance are available.