Round Rock ISD projects modest surplus as trustees begin 2026–27 budget planning

Round Rock Independent School District officials told the board on Feb. 17 that the current 2025–26 maintenance-and-operations budget is projected to be in the green, but material uncertainties will shape next year’s budget.

Dennis, the district’s finance lead, told trustees the district’s October revenue projection fell slightly from $488.199 million to $487.083 million because of lower‑than‑expected property values and other small adjustments. He said investment income is up but noted an $800,000 decrease in charge reimbursement and some federal grant reductions. On the expenditure side, Dennis said projections increased by roughly $3.8 million, and the district is starting with a plan to look for a minimum 10% reduction across department allocations.

Why it matters: trustees were repeatedly asked during the presentation how the district would protect classroom instruction while reducing expenditures. Dennis and Superintendent Dr. Aziz emphasized the district’s “North Star” of prioritizing instruction and school safety and said they will seek a mix of revenue and expenditure changes — including maximizing grant funds, targeted reductions and enrollment strategies — to avoid cutting core classroom services.

Trustees asked for clarity about how "mission critical" spending would be determined. Trustee Zarate asked whether the guidance would be centralized or delegated to principals; Dennis replied that schools retain autonomy to identify mission‑critical needs, while central administration will provide guidance so reductions are consistent across campuses. Trustee Landrum urged a community forum on budget reductions; Dr. Aziz said staff are arranging small‑group sessions and broader community meetings to explain tradeoffs and gather input.

CTE funding and staffing: Dennis told the board that changes in the state’s career-and-technical-education (CTE) allotment will increase district funding by about $4 million but that 55% of any additional CTE allotment must be spent on CTE programs (for example, hiring teachers). He estimated hiring seventh‑grade CTE teachers to meet that requirement would cost roughly $975,000.

Fund balance and one‑time items: Dennis said the district expects to record a modest positive position as of the presentation — a roughly $35,000 operating positive — and noted proceeds from a Clear Creek property sale would add about $1 million to fund balance. He reminded trustees that prior-year property‑value appeals required a $7 million refund and the district has a $5 million buffer in projections to mitigate future appeal risk.

Next steps: administration will run multiple budget scenarios, hold budget workshops and small group meetings with trustees, and present a proposed superintendent’s budget for 2026–27 later in the spring. The board asked for a schedule of community forums and committed to participating in outreach events.

At the meeting’s close on the budget topic, officials emphasized this is an early step in a four‑ to six‑month process and warned the figures could change as TEA guidance, property valuations and legislative actions evolve.