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San Angelo ISD projects $4 million shortfall as enrollment falls 466 students
Summary
District staff told trustees a net loss of 466 students and lower state aid will produce a projected $4 million deficit for 2026–27 after planned $5 million in staffing reductions and 5% program cuts; staff said attrition and two elementary closures will account for some reductions.
San Angelo ISD officials told the board May 11 that enrollment declines and lower state aid are driving a budget gap projected at about $4 million for the 2026–27 school year.
“This last summer, we lost right at 200 students,” budget presenter Brandon said during the pre-agenda workshop, adding the district has recorded a total loss of 466 students and has adjusted the current year budget accordingly. Staff showed projections that, if paid average daily attendance (ADA) is calculated at about 11,000 students, state foundation payments could fall from roughly $54 million to about $50 million.
The district plans roughly $5 million in payroll reductions and asked programs to cut another 5% to help close the gap. Staff said reductions in staffing account for most savings because "83, 84% of the budget is in staffing" and that the projected payroll cuts equate to just over 4.8% reductions in staffing costs.
Trustees discussed the district’s unassigned fund balance and timing of capital purchases. "Just over $50,000,000" was cited as current unassigned funds, with staff noting about three months of operating reserves under present assumptions. Officials said a $1 million bus purchase could shift between fiscal years depending on delivery (if buses are received after Sept. 1 they would be capitalized in 2026–27), changing the deficit by about $1 million.
Board members pressed staff on whether previous assurances to employees about maintaining employment through school closures remain viable. Staff responded that initial reductions would rely on attrition and retirements—"between 70 to 100" teachers leave annually on average—and that two planned elementary closures would create near-term reductions but that further cuts could be required if enrollment keeps declining.
Staff emphasized the district will update figures as TEA ADA payments and local property valuations are finalized and indicated the budget will be revisited ahead of the regular June meeting when more definitive numbers are expected.
The board did not take formal action on the budget projection at this meeting; trustees agreed to continued monitoring and to consider further steps as enrollment and state funding details are finalized.
