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McAllen ISD holds public hearing and adopts $287.9 million budget, keeps tax rate at 0.9322
Summary
McAllen Independent School District held a public hearing on its 2026–27 budget and proposed tax rate and adopted a total budget of $287.9 million while keeping the tax rate at 0.9322. The board also approved routine May/June amendments and discussed draws and fund-balance projections.
The McAllen Independent School District Board of Trustees opened a public hearing on June 23 to present the district's proposed fiscal year 2026–27 budget and proposed tax rate of $0.9322 per $100 valuation, the same rate as the previous year. Deputy Superintendent for Business and Operations Lorena Garcia summarized required public notices and a taxpayer-impact statement posted June 10, and presented a proposed revenue plan of roughly $283 million and planned draws, including a $2.9 million draw from the general fund.
Garcia told the board the district projects average daily attendance of 17,522 and outlined budget comparisons between FY2025–26 actuals and the FY2026–27 proposal. She said payroll remains the largest expenditure category (about 82.5% of appropriations) and highlighted increased special education costs and a projected unassigned fund balance of approximately $92 million after the planned draw, leaving the district with about 132 operational days (current board policy minimum is 75 days).
The board approved routine May and June 2026 budget amendments that record TRS on-behalf payments, an anticipated health-insurance shortfall and SHARS settlement adjustments, and other year-end items. Trustees voted unanimously to adopt the FY2026–27 accelerated instruction funds budget ($196,517), the general fund budget ($275,245,960) and the debt service fund budget ($12,677,845), for a total adopted budget of $287,923,805.
Board members discussed fiscal risks including declining enrollment and potential structural impacts on future budgets. Trustees who supported higher employee pay urged the board to consider budget amendments in August once legal and financial staff can confirm compliance with posting and adoption procedures; others raised concerns about increasing recurring obligations without a sustainability plan.
The budget vote concluded that the district would proceed with the adopted spending plan and recommended staff return with updates and, if needed, proposed amendments. The board then recessed for a closed session and later approved multiple personnel recommendations discussed in executive session.
The budget adoption is effective July 1, 2026; the next procedural step will be any future board-approved amendments if trustees pursue additional compensation changes.
