San Felipe-Del Rio CISD to publish zero-based budget, staff proposes two $500 stipends amid $2.7 million shortfall

Board President Josh Overfeld called a special budget workshop of the SAN FELIPE-DEL RIO CISD Board of Trustees to order at 5:30 p.m. on June 8, where district staff presented a zero-based interactive workbook showing about a $2.7 million shortfall for the 2026–27 general fund.

Amy Childress, a district staff presenter, said the demonstration used a 3% general-pay increase scenario that would add $2,611,324 to the budget and outlined personnel and program adjustments that produce identified savings. "For the purpose of this demonstration ... we are selecting the 3% increase which would be an additional cost to our current budget of $2,611,324," Childress said.

Superintendent Dr. Rios told trustees the district now faces higher recurring costs and lower revenue after last year's maximum raises, declining student enrollment and rising fuel and maintenance expenses. Dr. Rios said the district holds roughly $8 million in excess fund balance but warned that health insurance cost increases could require another $1 million to $1.2 million from reserves, creating longer-term risk.

"Instead of providing a pay increase that we have to sustain year over year," Dr. Rios said, "we would recommend two stipends: one on September 1, a check of $500 across the board ... and then another $500 check on January 15th. It wouldn't be quite as much as the cost of a raise, but for the employees on the average it would be about the same because they wouldn't be paying taxes on it. We would have paid the taxes upfront on behalf of the employees." The administration said the stipend approach avoids committing recurring funds while delivering one-time compensation.

Staff outlined specific savings and cost changes in the interactive workbook: $680,758 in personnel-related savings from position changes and hiring holds; targeted reductions including lowering campus library book funding from $6 to $3 per student (about $29,538 saved) and reducing student drug testing from 550 to 250 students (about $47,185 saved); and an adjusted technology/project financing item of $60,000. Childress said projected revenue was $17,720,616 and projected expenditures $110,419,922 under the presented workbook.

A district staff member identified state-mandated teacher pay adjustments under House Bill 2 (teacher retention allotment) that require certain step increases for roughly 58 teachers; staff said those mandated amounts must be budgeted in addition to any local decisions.

Trustees discussed personnel impacts and vacancies if reductions proceed. Administration said the CNA line would be reduced by 12 positions, five of which are currently vacant; staff said the district would attempt to reassign the remaining seven employees to other positions where possible. Trustees also noted the district has received about $4 million in wind-farm allocations to date and that the annual audit, expected in November, will clarify the final excess fund-balance figures.

After discussion, the board indicated a consensus to publish the zero-based workbook as the proposed budget for public review and to hold a public hearing and adoption meeting on Thursday, June 25 at 3:30 p.m. Administration said it will publish the public hearing notice in the newspaper and post the proposed budget on the district's website by the end of the week.

There was no formal vote on the budget at the workshop. The only formal motion during the session was to adjourn; Trustee Emilio Galindo moved to adjourn, seconded by Amy Haynes, and the motion carried unanimously. The meeting adjourned at 6:15 p.m.