KIPP Texas board approves revised FY26 and FY27 budgets, embeds bonuses and OKs five‑year First Student contract

The KIPP Texas Board of Directors unanimously approved revisions to its FY26 operating and capital budgets and approved the FY27 budgets on June 2 in Dallas, management said.

Board Chair Darla Whitaker opened the votes after finance staff described a revised operating framework that embeds bonuses and merit increases into core compensation for FY27. Chief Financial Officer Sun Han told the board management is targeting $48 million of EBIDTA under its operating goal; the TEA statutory budget assumes roughly $44 million after a full bonus payout.

Sun said last year’s outperformance eliminated the need to draw $18 million previously budgeted from the KIPP Texas Future Fund (KTFF), and management expects recurring revenues to cover recurring expenses by fiscal year 2028. “If we get to $48 million, it will support bonus funding,” Sun said during the presentation.

The board moved and seconded both budget approvals; each motion passed by unanimous voice/hand vote.

The meeting also cleared a major procurement: the board approved a five‑year transportation services renewal with First Student. Finance and operations staff said the proposed agreement balances “long‑term pricing stability, strong operational performance and sufficient flexibility” and that the pricing reflects estimates that already contemplate forthcoming seat‑belt requirements under SB546.

When asked for the annual contract gross number, staff replied the not‑to‑exceed annual amount is approximately $25 million and the five‑year ceiling about $125 million; board members had removed the item from the consent agenda for separate discussion because of the contract size before approving it by unanimous vote.

Other actions at the meeting included unanimous approval of the executive committee’s recommendation to sell the property at 9900 Veterans Memorial, the appointment of two new directors (Amy Gurley and a nominee whose name appears variably in the packet/transcript as Hudson/Huddleston), several officer confirmations for 2026–27, and a unanimous vote to postpone indefinitely two social media resolutions.

Sun Han told the board the organization maintains strong liquidity and compliance metrics, citing about 120 days of cash on hand and a triple‑B+ external surveillance rating. He cautioned the board that management is completing a deeper long‑term capital maintenance assessment and that some capital investments for aging infrastructure and modulars may be material.

The board’s consent agenda (with transportation removed for separate discussion) passed earlier in the meeting; after the open‑session votes the board adjourned to a closed executive session and later returned to recognize departing members and vote on governance items.

The board will receive full finalized academic and financial data in September, staff said.