McAllen ISD reviews near-final $287.9 million proposed budget; $1,000 baseline teacher raise recommended

McAllen Independent School District administrators presented trustees with a near-final proposed budget for 2026–27 that projects $283 million in revenues against $287.9 million in appropriations and would cover a roughly $2.96 million shortfall using fund balance and prior-year savings, Deputy Superintendent for Business and Operations Lorena Garcia said.

"This budget reflects three priorities: we want to stay student focused, support our students, invest in our employees, and maintain our long-term stability," Garcia said during the June 17 workshop. The package includes a total compensation investment of about $4.2 million, of which roughly $3.5 million is for compensation and benefits, $627,000 for market‑equity adjustments and $148,450 for stipends.

Administrators said the district is recommending a 1.5% market‑median increase for teachers, described as equivalent to a $1,000 baseline raise; staff also proposed a $56,000 starting salary for zero‑year teachers. Hourly employees would receive a 3% midpoint increase (estimated at $0.69–$1.30 depending on pay grade) and administrators a 1% midpoint increase, Garcia said.

Staff reported several revenue drivers: local property‑tax growth accounted for about $4 million in additional revenue, and state adjustments produced offsetting changes tied to enrollment. Average daily attendance is projected to decline (the presentation compared an earlier budget figure of 17,686 ADA to a proposed 17,522 ADA). The state teacher retention allotment is expected to increase by $3.3 million, but staff noted that amount is a pass‑through required for designated teacher payments. A per‑pupil distribution increase from $400 to $600 was estimated to generate about $3.5 million.

To cover the projected gap, administrators proposed drawing about $2.96 million from fund balances — roughly 1% of the budget — and using $1.96 million in fund‑197 interest earnings tied to a paid‑off maintenance tax note. Staff cautioned that once the fund‑197 earnings are spent they will not be available in the next fiscal year and the general fund will carry those payments going forward.

Projected year‑end fund balance for 2025–26 was presented at about $95 million; after the proposed draw that number would be about $92 million, which staff said still represents about 132 days of operations (the district policy minimum is 75 days).

Administrators also reviewed expenditures: instruction and direct student services are the largest investments, and special education spending has risen with increased service needs. The presentation distinguished between the proposed 2026–27 baseline and the 2025–26 "actual" totals (the actuals include midyear amendments and one‑time investments such as $15 million for a maintenance tax note payment and roughly $2.5 million for stadium track and turf repairs).

On capital and debt, staff noted that voters approved Proposition A, a $335 million bond package, on May 2; the district plans to issue $100 million of those bonds in September and expects a roughly $12.6 million debt‑service payment next year. The district posted the required taxpayer‑impact statement on June 10; using Hidalgo County Appraisal District values presented at the workshop, the median homestead assessed value after exemptions declined from $122,465 to $98,988 and the estimated tax bill under the proposed 93.22¢ tax rate would fall to $922.77 (about a $211 reduction compared with the earlier figure shown).

CFO Joel Garcia told trustees the draft budget book, which contains detailed schedules by fund and function, will be finalized and provided in paper and digital form on Monday, June 27. Administrators said they are comfortable recommending the proposed budget as a near‑final for board approval at the June 23 meeting.

The workshop included trustee questions and clarifications; no formal budget vote took place at the June 17 meeting. The board moved to adjourn at 6:13 p.m.