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Edinburg CISD budget workshop flags enrollment drop, $16.7M 2025 loss and projected shortfall
Summary
District officials told the board that falling enrollment and state funding changes will shrink Edinburg CISD’s fund balance; presenters outlined restricted teacher-pay dollars, a predicted $8M near-term decrease and cost-containment steps including rightsizing through attrition.
A preview budget workshop for the 2026–27 fiscal year left Edinburg CISD trustees with a clear message: enrollment declines and shifts in state reimbursements have tightened the district’s financial outlook.
Adele, who presented the budget update, said House Bill 2 funds the state’s two-year biennium beginning Sept. 1, 2025, and that allotments will not change for the coming year; district revenue remains primarily driven by average daily attendance (ADA) and property valuations. The presentation showed a multi-year decline in enrollment, with year-over-year drops of several hundred students and a projected ADA fall that could reduce revenue by roughly $3–5 million if current trends continue.
The district reported an audited total fund balance of $74,403,172 for fiscal 2025 and a one-time loss of about $16,700,000 largely attributed to ADA effects. Adele said the district now forecasts an additional near-term decrease of nearly $8,000,000. The board’s finance target is 75 days of fund balance (about $85.9 million); staff said the district ended 2025 at roughly 65 days and currently projects about 58 days unless revenue or spending patterns change.
Adele highlighted that while the state provided new dollars for teachers, many of those funds are restricted. She noted a teacher retention allotment and teacher incentive allotment added during the legislative session, including roughly $10,000,000 restricted for teacher salary increases. At the same time, special-education funding needs rose (Adele cited a roughly $2,000,000 increase) and SHARS reimbursements have been reexamined statewide, reducing amounts districts can expect to recoup.
Board members and staff emphasized that the district will prioritize rightsizing through attrition rather than immediate layoffs. "We are not letting go of anybody," a board member said, urging evaluation of positions through attrition and careful vacancy review. Officials also described operational steps to shore up finances: tighter approval processes for purchases, reviewing stipends, consolidating software to remove redundancies, maximizing interest earnings on held funds, and seeking grant opportunities.
Staff outlined attendance-focused revenue strategies — campus-level ADA goals, calendar adjustments to avoid disruptive early releases, and campus events to increase student presence. Adele reported district attendance had increased slightly from 92% to 93%.
Next steps the presenters recommended include continued budget workshops, deeper review of property values and county appraisals, a planned quality review of SHARS billings with Health and Human Services representatives, and targeted work on special-population budgets at future meetings.
The workshop concluded with the board acknowledging the need for consensus on cost-containment measures and further review of budgets by department and campus leadership.
