Bryan ISD CFO outlines 2026–27 budget, flags $419,000 baseline shortfall and 2¢ VATRE option

Bryan Independent School District Chief Financial Officer Norma Bridal presented the board with a 2026–27 budget overview on Thursday, saying the district expects about $182.6 million in revenue against roughly $183.0 million in expenditures under the baseline scenario, leaving a $419,000 shortfall unless the board adopts one of several options to close the gap.

Bridal told trustees the district used an average daily attendance snapshot of 14,189 (the fifth six‑weeks) as a conservative revenue driver and noted that revenues reported for the current year included extraordinary property‑value‑audit receipts and new state funding under House Bill 2. "We received about a $187,000,000 this year," Bridal said of the amended budget and added that projected actuals, counting recent adjustments, could be roughly $191,000,000. She cautioned trustees that the property‑audit payments were largely one‑time items: "Those were actually extraordinary items ... so we did not count on them to receive them next year." (Norma Bridal)

The presentation emphasized the gap is driven by two factors trustees repeatedly raised: declining attendance, which feeds the state funding formula, and timing mismatches between the district’s June budget adoption and later county and state certification of appraisal values. Bridal explained that accounting changes and GASB entries can make certain revenue lines look larger even where cash receipts do not materially increase. "There are some GASB accounting entries in there that we captured ... it doesn't necessarily mean that we're going to get more money in the bank," she said. (Norma Bridal)

Bridal sketched several options the board could consider to reduce the projected shortfall: continuing one‑time stipends for hourly staff (the $500 one‑time payment given last year), a $50‑per‑week bus‑driver attendance incentive, granting the teacher 'step' on the salary scale, or a $500 one‑time stipend for all professional staff. She gave item costs in round figures: the teacher‑step option roughly $557,000 and a $500 one‑time stipend for professional staff about $625,000; the bus‑driver program is roughly $275,000. "Without any compensation, we landed at negative $419,000," Bridal said; adding compensation choices would widen that gap. (Norma Bridal)

Trustees pressed staff on the sustainability of revenue increases tied to property‑value audits and asked when the district would decide whether to use fund balance. Bridal confirmed the audits produced substantial one‑time revenue and said any decision to apply fund balance would be a transparent budget option rather than a structural solution: "School districts do have the option to use fund balance to close budget deficits ... but ... it still goes on the books as a deficit budget." (Norma Bridal)

The board also discussed a possible tax option described as a 2‑cent VATRE not subject to recapture. Bridal presented an example for an average homeowner: on a $350,000 house with a taxable value of about $210,000, a 2‑cent increase would add about $42 per year, or about $3.50 per month. She estimated a 2¢ VATRE would produce roughly $5.5 million in recurring revenue for the district (about $2.5 million local share and approximately $3.0 million in additional state share under current rules). "If the board should elect to call for a VATRE, that translates to about 5½ million dollars," Bridal said. (Norma Bridal)

Bridal said district strategic‑planning and finance focus groups consistently prioritized compensation as the top use of any new recurring funds. "100% of the committee chose to spend it on compensation," she said, summarizing multiple stakeholder exercises. Trustees discussed timing and next steps: Bridal will return to the board in June with a proposed budget for adoption and staff noted a VATRE decision would need to be made by Aug. 17 to meet the timeline for that kind of tax election. (Norma Bridal)

The presentation also covered the health‑insurance fund, which Bridal said operates on a calendar‑year cycle and recently showed a roughly $600,000 positive swing compared with the prior year’s quarter; she warned that differences in cycles complicate fiscal comparisons and the district may need to consider any contribution prior to fiscal year end.

The board did not take votes at Thursday’s informational meeting; Bridal said the session was intended to solicit questions and feedback before staff return with formal proposals. The meeting was adjourned at 7:23 p.m. (Board President)