Weslaco ISD trustees review plan to erase this year’s shortfall using bond interest and reclassifications

Weslaco ISD trustees on Monday heard administration’s plan to close a projected 2025–26 budget shortfall by using one-time bond interest earnings and reclassifying construction reserves, while studying staffing and program changes to address a recurring structural gap.

Dr. Vera, the district’s budget presenter, told trustees the district’s April amendment and subsequent projections show three views of this year’s numbers: a budget amendment baseline, region-one-reviewed figures and a projected-actuals column that assumes current freezes and encumbrances. In the worst-case scenario staff presented a $17.7 million deficit; staff said the figure could be lower under the spending freeze and other savings. "We will not affect our students in any way," Dr. Vera said, adding the administration is prioritizing classroom services while looking for administrative and non-classroom reductions.

The district plans to apply roughly $14.1 million of bond interest earnings to eligible projects and reclassify a $7 million construction allocation (previously designated for HVAC) back to unassigned fund balance, producing about a $21.1 million one‑time fund increase to cover the current-year gap. Staff emphasized that the bond interest infusion is one-time and will not recur in 2026–27.

Trustees pressed staff on drivers of the recurring deficit, with salaries identified as the largest expenditure (staff estimated salary costs near typical 75–85 percent of operating budgets). A trustee noted prior pay increases, saying the board had approved raises and stipends in recent years that increased salary exposure; the trustee urged fiscal caution going forward. Administration said a hiring freeze and selective non‑replacement of vacated positions have already reduced near‑term payroll exposure and that the team is modeling how much of those reductions will carry into the next fiscal year.

Staff also reviewed the district’s self-funded health plan, reporting 10 months of actual claims and that rebates and stop‑loss reimbursements are being applied continuously and are already reflected in the claims numbers. Administration said health‑plan runouts in May and June could change final totals and that additional transfers from fund balance might be required depending on final actuarial figures.

Bond‑project timelines and procurement methods drew robust discussion. Administration reported payments of roughly $9–10 million to date and some $49 million encumbered under contract out of a roughly $140 million bond program; large Prop A projects remain in extended design phases. Trustees explored whether design‑build procurement could shorten timelines and reduce finger‑pointing between designers and contractors; staff said design‑build can speed completion but noted tradeoffs in early cost transparency and the need for formal procurement analyses.

On revenue assumptions, staff reported the district’s projected ADA is near 14,280 for budget planning; current attendance reports through the fifth marking period tracked nearer to 14,350. Region‑level staff warned trustees that TEA’s move to monthly ADA/attendance settlement will make state payments fluctuate month‑to‑month rather than providing an annualized advance districts could temporarily invest.

Administration said the next workshop will provide updated figures and that the board is being asked to consider adopting the budget on June 22. Staff repeatedly said more granular reduction amounts and timelines will be brought to the next meeting so trustees can review concrete dollar targets before adoption.

What’s next: staff will return with updated, audited numbers at the next budget workshop and a dollarized list of proposed reductions and timing ahead of the board’s planned adoption date. The administration emphasized protecting classroom services while pursuing administrative savings and one‑time accounting adjustments.