Arlington ISD adopts 2026–27 budget amid enrollment losses and shrinking purchasing power

The Arlington Independent School District Board unanimously approved the 2026–27 budget on June 16 after a presentation by CFO Nberto Rivas outlining the district’s fiscal outlook.

Rivas told trustees that the district faces a structural funding gap driven by declining enrollment, inflationary pressure that has outpaced state basic allotment increases and the expiration of one‑time federal funds. "If the legislature had kept the basic allotment on par with inflation since HB3 in 2019, we'd have roughly $75 million more purchasing power today," he said, illustrating how static state allotments have eroded budgets.

Key facts from the budget presentation: - Enrollment decline: The district is projecting continuing annual declines (roughly 1,000 students per year in recent years), which reduces state and local entitlement funding. - Fund balance and reserves: The adopted 2026–27 plan preserves a multi‑month reserve but reduces days of operating fund balance compared with prior years; staff projected roughly 107 days under the proposed budget scenario after adjustments summarized for trustees. - Major cost pressures: increased transportation and insurance costs, and ongoing costs related to special programs and safety, together outpaced modest assigned state increases.

Rivas outlined cuts and offsets the administration used to close the gap, including department zerobased budgeting, vacancy management, and staff reductions linked to enrollment attrition. He said the district had used federal ESSER funds and prior bond interest earnings to smooth prior shortfalls and that those one‑time sources are now largely exhausted. "We can close this gap for this year because of a healthy fund balance, but without meaningful state action next year the structural pressures will return," Rivas advised.

Trustee discussion and vote: trustees from both sides of the aisle acknowledged the difficulty of the choices. Several board members praised the district’s prior fiscal stewardship that built reserves available now to manage the transition. "This district did what TEA recommended — we built reserves and it gave us runway," one trustee said. The board voted unanimously to adopt the budget, approving the general fund, debt service fund, child nutrition fund and capital projects fund as presented.

What comes next: staff said they will continue work on multi‑year financial planning and report back to the board on implementation of reductions and monitoring of enrollment. Trustees indicated that additional structural adjustments and district realignment may be necessary if state funding does not change or enrollment declines persist.

The adopted 2026–27 budget provides a path for operations next year but leaves the board confronting a multi‑year funding challenge tied to state school finance, enrollment, and inflation.