Laredo ISD trustees review 2025–26 budget options, weigh tax pennies and salary models amid new state voucher law

LAREDO — At a budget workshop Thursday in the Amber Urie Boardroom, LAREDO ISD trustees reviewed the district’s projected 2025–26 shortfall and considered options to raise maintenance-and-operations revenue, fund salary increases and shore up finances amid upcoming state changes including Senate Bill 2, which establishes education savings accounts (ESAs).

The meeting opened with a staff presentation on the district’s 2025–26 budget status and options for increasing stipends and pay. Presenter Miss Ayala told trustees that the current maintenance-and-operations (M&O) rate is 0.6669 and that each proposed “golden penny” of the tax rate would generate roughly $3,500,000 for the district. She said a model for an average homeowner (market value $133,000) shows an average current property tax of about $242.90; adding three golden pennies would raise that homeowner’s annual bill by about $6, while adding more pennies could increase the bill further.

Why this matters: trustees said any local tax action would go to voters and would affect employees, homeowners and commercial property owners. Trustees and staff also discussed the potential for enrollment losses if parents use ESAs to move students out of public schools, a factor that would reduce state funding the district receives per student.

Staff numbers and deficit forecasts Miss Ayala and other staff told trustees the district has implemented $5.2 million in reductions and eliminated about 117 positions for the coming year. Under current assumptions the district’s projected general‑fund deficit for 2025–26 is about $7.3 million. Ayala also said the district has set aside roughly $8.1 million–$8.8 million in fund balance as an assignment for budget shortfalls.

State legislative actions and timing Staff summarized Senate Bill 2 (ESAs), saying the program will start for the 2026–27 school year and that the comptroller of public accounts will administer the program; rules and implementation procedures were not yet complete. Staff cautioned that the district’s exact fiscal impact will depend on how many students leave and on private‑school capacity.

Tax-rate and bond options Trustees discussed two tiers of local taxing authority (referred to in the presentation as “golden” and “copper” pennies). Staff said the board can adopt the golden pennies without a voter election for some amounts but that copper pennies generally require an election. Trustees heard a timeline that would require an efficiency audit, a public meeting to publish results, and (if the board proceeds) a November election. Miss Ayala noted the efficiency audit is informational for voters and does not determine legal eligibility to call an election.

Salary proposals and cost models Human‑resources staff presented three pay models: a 2.0% across‑the‑board option (Model 1, roughly $6.3 million total cost), a 3.0% option (Model 2, roughly $8.0 million), and a 3.5% option (Model 3, the staff recommendation, roughly $8.8 million). Presentation material explained placement scales, minimum pay adjustments and targeted adjustments for operations and instructional support. Staff said one‑time performance payouts earlier this year cost about $6.3 million.

Operations pay and low starting wages Trustees pressed staff on entry wages for operations and support staff (custodial, food service, bus monitors and similar roles). Trustees noted some starting wages in the district’s draft pay structure were near $11 per hour; several trustees requested staff model the cost to raise those minimums to $12 per hour and to show the downstream cost impacts across pay grades and years of service.

Enrollment risk and contingency planning Trustee questions focused on worst‑case scenarios if parochial schools in the district reopen or if a substantial number of families use ESAs. Dr. Gilberto Martinez Jr. and others asked what would happen if the district lost several hundred students; staff replied that a drop in attendance would reduce Basic Allotment revenue and could require immediate operational changes such as consolidation of campuses, boundary adjustments and changes to transportation routes.

Next steps Staff recommended the board select an efficiency auditor and directed staff to return with scenario materials showing homeowner and commercial tax impacts, the cost of raising low entry wages to $12, and a funding plan linking any chosen salary model to available revenues (including potential state aid and fund‑balance assignments). Trustees did not take a formal vote during the workshop; the presentation materials and scenario requests will return for board consideration before any election or formal adoption.

“I have a huge concern for everybody in our community, the taxpayers,” Trustee Juan Ramirez Jr. said during discussion, summing up the tension trustees voiced between raising revenue and limiting taxpayer burden.

The board scheduled further budget work and said staff will update trustees after legislative actions are finalized and after the efficiency audit work is completed.