Laredo ISD trustees approve interim superintendent contract; board reviews budget reports, frozen federal funds and contracts

LAREDO, Texas — The Laredo ISD Board of Trustees approved a contract for interim superintendent services and spent the rest of a July 15 special-call and Business & Support Services meeting reviewing financial reports, procurement recommendations and several education-related memoranda of understanding.

The board voted to approve an interim superintendent contract for a term up to 12 months with a monthly pay rate of $9,300, described in the motion as an amount “in addition to” the district president's salary. A second was recorded; those voting in favor signified "aye" and the motion passed, with no roll-call tally recorded in the public transcript.

Why it matters: Trustees flagged potential shortfalls and one-time costs in the coming year and discussed strategies for covering personnel currently funded by federal grants. School leaders said some federal funds are frozen and the district is planning to use carryover balances and Title I funds temporarily while it waits for clarification.

Major financial items

- May disbursements: Finance presenter Diana Ayala told trustees the district's cash disbursements for May totaled $23,500,000; about $16,000,000 of that was payroll and $7,300,000 was for goods and services. Ayala gave an unaudited review of financial statements as of May 31, 2025, and said year-to-date revenues were estimated at $211,500,000.

- Tax collections and levy: Ayala said July-to-May collections were $34,400,000 (about 93.46% of a $36.8 million budgeted amount). The adjusted opening levy was presented as $35,900,000.

- Payroll and budget drivers: The finance presentation attributed a $19,600,000 increase in payroll costs to moving teacher positions from ESSER grants into the general fund and to a one-time payment issued in December. Ayala also noted a $17,600,000 transfer-out tied to the Sigaroa (Siguaroa/Sigaroa in transcript) High School project.

Frozen federal funds and carryovers

Trustees pressed staff about a recent notice that several federal grants had been frozen. When board members asked how large the potential loss would be, Ayala said, "About $3,600,000." (Transcript: "About $3,600,000.") She and other staff described short-term plans to use Title I carryover and other available balances to sustain positions and services through Sept. 30, 2025, when many grant periods end.

Special-education rollovers and equipment requests surfaced repeatedly. Staff said the district shows roughly $2,200,000 in special education carryover funds that are typically spent in spring on assessments and specialized equipment; the grants office said carryover must be spent by Sept. 30 for most federal programs.

Trustees and staff discussed practical priorities if funds remain: sensory rooms at high schools, accessible playground equipment, assistive communication devices and transportation options for students with mobility needs. A board member suggested exploring federal transit grants to help purchase ADA-accessible vans; staff said they will coordinate with transportation.

Procurement and cooperative agreements

District procurement staff reviewed recommended renewals and cooperative contracts for curriculum, library and student-data services, food and food-service vendors, janitorial supplies, uniforms and other categories. Highlights included:

- Renaissance Learning and Companion Corporation for Accelerated Reader/Star Reading subscriptions (estimate $192,009.42). - NWEA (Northwest Evaluation Association) and Houghton Mifflin Harcourt recommended for instructional assessment and software (combined estimates discussed). - Region 1 Education Service Center cooperative fees and services listed with an estimated $500,000; library cooperative and other Region 1 cooperatives were described as a per-student cost. - Food and nutrition contracts recommended via Region 1/South Texas co-op, including Labatt Food Service and Dean Foods, with multi-million-dollar estimated awards for the child nutrition program.

Finance staff and trustees discussed whether every cooperative and license was necessary; several trustees asked staff to compile usage reports, renewal end dates and options for renegotiation or elimination to seek budget savings.

Bond refinancing

Finance presented the district's recent refunding of 2015 unlimited tax refunding bonds, closed June 26, which produced $421,055 in net present-value savings. Staff said that translates to about $88,000 annually for four years and that savings will appear in debt-service calculations ahead of tax-rate considerations.

Special education and interagency agreements

Trustees reviewed annual or revised memoranda of understanding covering child find (Region 1 outreach to locate children from birth to 21 with possible disabilities), the regional day school program for the deaf (LISD provides services to some neighboring districts), and an MOU with Project Nif1os (early childhood intervention for ages 0'3). Staff said changes this year include some neighboring districts beginning to provide their own services; staff projected a reduction of about 29 itinerant students expected to return to their home district for services.

Policy issues: class ranking, non-enrolled student participation and cell phones

Trustees debated several policy items and state law changes:

- Class ranking and valedictorian rules: Board members discussed proposed language to allow a student who graduates in three years to be eligible for valedictorian if their credits and coursework are equivalent to a four-year graduate. Trustees asked staff to gather principal input and community feedback before adopting any change; several members recommended delaying a policy revision until the next year to allow stakeholder engagement.

- UIL participation by non-enrolled students (Senate Bill 401): TASB staff and legal counsel briefed trustees on new state law that lets districts adopt a local policy by Aug. 1, 2025, to decline participation by non-enrolled students (charter or homeschool) in UIL activities. Administration asked for direction and said it would present a recommendation at the regular meeting.

- House Bill 1481 (student personal communication devices): The superintendent and legal counsel described the new law limiting use of cell phones and smartwatches during instructional time and aligning district handbooks with the statute. Counsel referenced revisions to Texas Education Code sections that govern personal communication devices; staff are preparing handbook language and an outreach memo for parents.

Sierra Romero / Sigaroa campus construction update

Construction staff gave a progress update on the new Sierra Romero campus (referred to in the transcript as Sierra Romero / Sigaroa project). They said major mechanical and utility connections are being completed, many classrooms and fixed equipment have been installed and furniture deliveries are underway. The project team and district leaders discussed traffic flow, pedestrian crossings and bus/parent drop-off plans with city staff. Staff recommended phasing any full campus move-in to give teachers time to unpack and familiarize themselves with the building; trustees suggested considering a soft opening during a break rather than a mid-semester forced move.

Votes at a glance

- Interim superintendent contract: motion to approve an interim superintendent services contract for a term up to 12 months with a monthly pay rate of $9,300 in addition to the district president's salary; motion seconded and passed (public transcript records an "aye" voice vote; no roll-call tally recorded).

What's next

Trustees asked staff to return to the regular July board meeting with detailed follow-ups: a) itemized usage reports and renewal end dates for cooperative contracts and software licenses, b) a plan for addressing frozen federal grants and proposed contingency staffing plans, c) recommendation on the student participation policy for UIL (SB 401) and d) proposed handbook language implementing HB 1481 on personal devices. Staff said they will also continue coordination with city traffic officials on the new campus.

(Reported from the Laredo ISD special call and Business & Support Services committee meeting on July 15, 2025. Meeting transcript and presenter materials provided by Laredo ISD.)