Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Finance topic
No spam. Unsubscribe anytime.
Southwest ISD projects a $3.2 million preliminary deficit for 2026–27; board advances compensation plan
Summary
Finance staff told trustees the district is budgeting about $185 million in revenue against roughly $188 million in expenses for 2026–27, leaving an estimated $3.2 million shortfall; the board approved a compensation package that keeps current salary structure with limited adjustments.
Scott, the district finance officer, told trustees the board’s preliminary budget assumptions are based on certified values and a 98% tax collection rate and put projected revenue at "about a $185,000,000" with expenses of "about 188,000,000," leaving "about 3,200,000" in projected deficit, he said.
Scott said the district expects to finish with a fund balance of about $56,000,000, equivalent to the board’s four-month policy requirement, and described a three-year approach that aims to maintain current salary structures for 2026–27 and then phase strategic compensation later.
On compensation, Scott described limited exceptions planned for 2026–27: moving cafeteria managers from pay grade 4 to pay grade 5 and adding principals to the strategic compensation plan with a one-year hold-harmless provision that he estimated would cost about $120,000. The board later voted to accept the compensation manual and related updates.
Child nutrition, Scott said, will operate with roughly $19,000,000 in program revenues and expenses; debt service and bond-payment projections were described as manageable as construction projects wind down. He said the district plans further budget work in August and will hold a budget hearing and vote later in the month.
The presentation closed with a timeline of required public notices and a planned budget hearing and adoption in late August.
The board’s action on the compensation manual and related pay-grade changes was approved during the meeting; the board also approved other routine financial items. No vote tallies were recorded in the transcript.
