VISD budget workshop: M&O revenue estimated at $134.5 million; payroll to absorb most of increase

At a July 16 budget workshop the Victoria ISD finance presenter told trustees the district is estimating about $134,500,000 in revenue for the maintenance and operations (M&O) fund for the coming year and that roughly 82% of that bucket is expected to pay payroll.

“We’re estimating about 134,500,000 will be revenue for M and O,” the Finance Presenter said, noting the figure is preliminary while the district awaits property values from the appraisal district. The presenter said M&O typically breaks down to about 82% payroll and 18% for all other costs including insurance, utilities, contracted services and campus budgets.

The presentation flagged two main revenue pressures: declining enrollment and lower state compensatory funding tied to parent survey participation. The presenter said enrollment and a state formula determine the M&O allocation and urged outreach to parents so economically disadvantaged students are counted for state funding that supports tutoring and supplemental materials.

Trustees pressed on the district’s debt service (I&S) modeling after one trustee noted an estimated $160,000 draw on the debt service fund balance in planning models. The Finance Presenter said the district modeled conservatively to hold the debt rate steady and that audited figures show about $7 million in the debt service fund, adding the district does not plan to use the $160,000.

The district also discussed child nutrition, which operates under the community eligibility provision; presenters said the program remains balanced but is roughly $600,000 below last year due to fewer students and lower grant reimbursements tied to eligibility identification. The presenter said more detailed finance summaries will be run once appraisal district numbers are available and TEA releases maximum compressed rates.