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Board adopts amended 2025–26 budget showing projected surplus, discusses preliminary 2026–27 budget and TAN recommendation
Summary
Finance staff presented an amended 2025–26 budget projecting roughly a $3.3 million surplus and an estimated unrestricted fund balance near 14%; the board adopted the amendment and reviewed the preliminary 2026–27 budget, including a recommended $10 million tax anticipation note to cover timing gaps and discussion of transportation costs tied to McKinney‑Vento students.
Chief finance staff presented the district’s disbursement and amended budget reports on June 9, outlining revenue and expenditure assumptions that underlie the 2025–26 amended budget and the preliminary 2026–27 plan.
Dr. Chance told the board that the amended 2025–26 budget reflects several revisions: higher local current‑tax receipts (including delinquent collections), an unexpected federal ESSER receipt earlier in the year, and a large EV bus grant that increases capital outlays on both revenue and expense sides. He said the state adequacy target paid out less than the statutory target and estimated that the combined impact on the district’s foundation formula represents several million dollars of lower state aid.
On the expenditure side, vacancies reduced salary and benefit outlays compared with budget; purchase‑of‑service costs increased (notably contracted pupil transportation related to McKinney‑Vento and foster‑placement services). Dr. Chance summarized the amended totals as roughly $165 million in total revenues and $161.5 million in total expenditures, producing a projected surplus of about $3.3 million and an estimated unrestricted ending fund balance near 14% (about $20.4 million) before a conservative 3% planning reduction.
Because local tax receipts arrive later in the calendar year, administration recommended a tax anticipation note (TAN) of about $10 million to cover cash‑flow timing until new tax revenues post. Board members discussed when and how to approve the preliminary 2026–27 budget; recorded votes were taken for the amendment and for the preliminary budget during the meeting.
On McKinney‑Vento costs, administration said the district serves a high number of students experiencing housing instability and must provide transportation under federal law. The district is pursuing reimbursements from other districts but noted lagging collections have driven purchase‑of‑service overages.
Why it matters: the amended budget signals improved fiscal position compared with earlier projections, but cash‑flow timing and transportation costs present ongoing operational pressures. The board approved the 2025–26 amendment and proceeded with consideration of the 2026–27 preliminary budget.
