Midland ISD finance update: administration recommends budget amendment; CFO projects a $4.1M surplus under current assumptions

The Midland ISD Board approved Budget Amendment No. 9 after a detailed financial briefing from district finance staff.

Finance director Mr. Durham told trustees the amendment chiefly moves cross-functional transfers and records proceeds from 'right-to-use' lease assets per GASB 96; he described the amendment as net-neutral to the overall $7.89 million deficit the board had adopted earlier. Mr. Durham said the district is currently projecting a $4,100,000 surplus for the current fiscal year, though he cautioned that several risks — including self-funded medical insurance performance and transportation needs — could reduce that figure.

Mr. Durham reviewed major budget drivers: roughly 78% of the budget is payroll; the district reduced its budget by $35.27 million and adopted a $7.89 million deficit earlier this cycle but projects ending in surplus based on current assumptions. He also reviewed state funding changes to special education (moving from instructional setting to intensity-based funding for 2026–27), and explained recapture exposure and one-time revenue from an 1882 partnership that temporarily benefits the district this year.

Trustees asked for further detail on recapture scenarios tied to the IDEA Travis partnership; Mr. Durham presented hypothetical figures (gross revenue loss approximately $12.2 million; recapture roughly $10 million) and clarified that, after variables, the net revenue impact in his scenario was discussed as roughly $318,000. Trustees also pressed about timelines for adoption and public hearings; Mr. Durham said the compensation plan will be presented next month and the public hearing on the proposed budget and tax rate will be in June.

The motion to approve Budget Amendment No. 9 passed unanimously.