Harlandale ISD projects $9.6 million general‑fund shortfall; board weighs one‑time staff payments

Harlandale ISD officials told trustees at a special budget workshop that the district expects a multi‑million dollar shortfall in 2026–27 and outlined options to protect staff pay without increasing recurring salary costs.

“Tonight we’re going to go over the 2025 2026 2027 budget workshop,” Assistant Superintendent for Business and Finance Mr. Flores said as he opened a presentation that reviewed legislative changes, recent enrollment and multi‑year budget projections. He told trustees the district is modeling a 26‑27 average daily attendance (ADA) of about 9,500 and a general‑fund deficit of roughly $9,615,000 under that scenario.

Why it matters: Texas public‑school funding is driven largely by ADA, and small enrollment declines can cause large revenue swings. Mr. Flores said Harlandale’s final 24‑25 ADA was 9,982 but projected final funding ADA may be near 9,674, below earlier targets. Trustees and staff framed the enrollment decline as part of a broader county and statewide trend.

State funding and district responses

Flores summarized actions from the 89th Texas Legislature (the 2025–27 biennium) that created teacher retention allotments and a support‑staff allotment. The district received about $389,426 targeted from those allotments but elected to supplement pay with a districtwide 2% increase for 25‑26, which he estimated cost “close to $1.9 million.”

“Those allotments did not cover the 2% we provided,” Mr. Flores said, noting the district covered additional increases for some teachers who did not qualify under state rules.

Compensation options under consideration

Because a permanent pay increase would raise recurring costs, district staff proposed a one‑time retention or recruitment payment to employees in December 2026. Models shown to the board included a $350 payment ($576,000), $500 ($823,000) and $650 ($1,070,000). The one‑time payment would apply to all employees on payroll (not substitutes), while teachers, librarians and nurses who move a step on the district salary schedule would still receive the corresponding step increase.

Trustee questions focused on eligibility and messaging. “When you said provide staff, we mean the entire staff of the district, not just teachers?” asked Trustee Kos. Mr. Flores confirmed the payment models included all employees on regular payroll.

Staffing reductions, program priorities and non‑staff cuts

To balance recurring budgets, leadership outlined strategic attrition and position consolidations rather than mass layoff notices. Mr. Flores said approximately 47 positions across campuses and central office are targeted through attrition for 26‑27 (examples given: administrative assistants; library assistants; attendance clerks; testing coordinators; some central‑office roles). A trustee emphasized none of those staff had been given pink slips.

District leaders also described a 20% reduction to non‑staff departmental budgets (contracted services, supplies, operating costs) and smaller per‑campus allocation changes. Trustees highlighted programs the district has preserved—mariachi, middle‑school softball and selected CTE and CIS supports—as examples of priorities they want to sustain.

Child Nutrition and capital planning

The Child Nutrition Fund, historically balanced, is planned to run a deficit of about $1 million to pay for dining‑room and serving‑line renovations, Mr. Flores said. The district generally keeps six months of operating costs in that fund and plans the drawdown to pay specific capital repairs.

Debt service and five‑year outlook

On debt service, staff reported roughly $18.63 million in revenues against $19.536 million in projected expenses and noted a $11.99 million qualified construction bond principal lump sum due in August 2026. The board reviewed five‑year projections that assume the district reaches a more balanced position by 2028 if enrollment and state funding change favorably.

Next steps

Trustees were asked to consider maintaining the adopted 25‑26 compensation levels for 26‑27 and to weigh which one‑time payment (if any) the board would favor. Staff signaled a tax‑rate posting would be presented for publication the following week, with final adoption tied to certified values in August and budget action planned at the June regular meeting schedule noted in the presentation.

The board’s next procedural step: Trustee Kasos moved to adjourn, Mr. Lee seconded, and the meeting concluded at 7:18 p.m.

(Reporting based on the Harlandale ISD special budget workshop presentation and trustee discussion.)