San Felipe-Del Rio CISD previews zero-based proposed budget; trustees back two $500 stipends instead of a raise

SAN FELIPE‑DEL RIO CISD — Trustees at a June 8 special budget workshop reviewed a proposed zero‑based budget that staff said would produce an approximate $2.7 million deficit and directed administrators to publish the proposed budget and schedule a public hearing for June 25.

Dr. Rios, who identified himself in the meeting as part of district leadership, told trustees the shortfall reflected two main factors: the district gave near‑maximum raises last year (raising the base cost for any future raises) and projected revenue has fallen by roughly $500,000 because of declining student enrollment. "We have approximately $8 million in excess fund balance," Dr. Rios said, but he warned anticipated health insurance cost increases of about $1 million to $1.2 million could further reduce reserves.

Rather than recommend a recurring general pay increase, district leadership proposed two one‑time stipends — $500 on Sept. 1 and $500 on Jan. 15 — with the district covering payroll taxes so the payments would be tax‑free to employees. "We would recommend two $500 checks to 100% of our employees," Dr. Rios said, framing the stipends as a temporary measure that would not become part of base pay.

During the presentation, staff showed trustees an interactive workbook that modeled three general‑pay scenarios (2%, 3%, 4%); the demonstration used a 3% scenario that staff said would add $2,611,324 to the budget. Staff also identified line‑item savings the board had requested for consideration, including reducing campus library book funding from $6 to $3 per student (estimated savings $29,538), cutting student drug testing from 550 to 250 students (estimated savings $47,185), and trimming certain GT consultant and training expenses. Staff summarized total savings on the workbook's savings tab at $174,047.

Trustees and staff discussed several operational and facilities items. Staff said they reduced a planned $300,000 allocation for Garfield Elementary air‑conditioning repairs to $100,000 (enough to repair one unit) and listed multiple smaller fire‑inspection repairs that must be funded for code compliance. On technology, staff said district Chromebook purchases from state funds allowed a $100,000 reduction in the technology budget.

Trustees stressed avoiding layoffs and protecting classroom positions. Trustee Emilio Galindo said trustees "don't want to go down the road of nobody not having a job" after the painful personnel reshuffles of previous years, and the board asked staff to prioritize replacing vacancies and reassigning affected employees where feasible. Staff noted an option to reduce CNA positions by 12, of which five were already vacant; the staff presentation said the seven filled positions would be reassigned where possible.

Board members asked whether the stipend approach could be revisited midyear if interest earnings or vacancy savings improved the fund balance. Several trustees supported paying an initial $500 stipend and then reviewing finances to consider increasing the second payment. Trustees repeatedly framed the stipends as a way to provide immediate assistance without creating a multiyear compensation commitment.

On process, staff said they will publish the required public notice in the newspaper this weekend and post the proposed budget on the district website by the end of the week; the district scheduled a public hearing and adoption vote for June 25. The workshop was discussion only; no formal budget adoption occurred at the June 8 meeting.

The meeting closed with routine business and a motion to adjourn, which carried unanimously at about 6:15 p.m. (mover: Emilio Galindo; second: Amy Haynes).