El Campo ISD approves 2025–26 budget, keeps tax rate at $1.0527; authorizes bond defeasance

The El Campo Independent School District Board of Trustees on Aug. 27 adopted the district’s 2025–26 general operating budget and set the tax rates the board will levy for the coming year.

The board voted unanimously to set the maintenance and operations rate at 0.7487 per $100 of valuation and the interest and sinking (I&S) rate at 0.304, for a combined rate of 1.0527. Trustees made the two tax‑rate motions separately and voted to approve both.

Finance staff told trustees that staff calculations and the packet figures show the proposed 2025–26 general operating budget at $39,274,584 and explained the state’s teacher retention allotment will flow to classroom pay increases. Staff also reviewed final amendments to the 2024–25 general fund: tax collections were higher than earlier estimates after appraisal district adjustments but state “settle up” processes can reverse some of that revenue; attendance declines (ADA) reduced expected revenue; and expenditures ran roughly $1.8 million over the original plan, driven largely by retention bonuses and stadium turf work. After adjustments, staff projected a fund balance just under $7 million.

The board also approved a resolution authorizing the redemption and defeasance of up to $1,950,000 in outstanding bonds, a move staff said would free future capacity on the I&S side of the tax rate and supports future facility planning. Staff stated there is no prepayment penalty for the defeasance.

Votes at a glance - Final amendments to 2024–25 general operating budget: motion carried unanimously. (Mover: mister Dorje.) - M&O tax rate (0.7487 per $100): adopted unanimously. (Mover: mister Dorothy; second: mister Ryan.) - I&S tax rate (0.304 per $100): adopted unanimously. (Mover: mister Dorothy; second: mister Ryan.) - 2025–26 general operating budget (as presented; packet showed $39,274,584): adopted unanimously. (Mover: mister Dubrov; second: mister Ryan.) - Authorization for redemption/defeasance of up to $1,950,000 in bonds: adopted unanimously. (Mover: mister Dorr; second: mister Canel.)

What it means Trustees said the district’s revenue picture this year was affected by appraisal‑district valuation adjustments and by lower student attendance. Board discussion emphasized that some revenue gains from updated appraisals are later adjusted by the state, creating cash‑flow complications. The budget increase for 2025–26 reflects state teacher retention funds and limited net growth in the district’s operating budget after those offsets.

The board will return in September for more detailed analysis of accountability and campus trends, and staff indicated they will continue to monitor ADA and the appraisal district situation.

The board adjourned after later approving an amendment to the superintendent’s contract that staff were authorized to finalize with legal counsel.