Garland ISD trustees received an in-depth overview of the district’s proposed 2025–26 budget during a workshop held June 10.

District officials outlined projected increases in revenue and expenditures, continued funding gaps in key programs, and enrollment trends expected to impact finances in the coming year.

The presentation included comparisons with the current 2024–25 budget and a projected fund balance at the end of the fiscal year. Officials also examined the ongoing effects of recent state legislation, including the gap between the actual cost of student programs and the state’s financial support.

Enrollment is forecast to decline slightly in 2025–26, with total student count expected to drop by 711 to 50,310. Average Daily Attendance (ADA) is also projected to decrease, from 46,247 to 45,822, which will have a direct impact on state funding levels, as funding is largely based on ADA.

The district projects approximately $580.3 million in general fund revenue for the upcoming fiscal year, representing a 13.5% increase—or about $68.8 million—over the adopted 2024–25 budget. This gain is largely driven by a nearly $26.9 million increase in local revenue, bringing that total to just under $230 million. State revenue is also expected to rise by about $42 million to $342.3 million. Federal funding is projected to remain flat from year to year at $8 million.

On the expenditure side, the district expects to spend roughly $635.2 million in 2025–26, an increase of 5.8% over the current fiscal year. Payroll remains the district’s largest cost, projected to reach more than $532 million, up 4.7% from the current year. Other expenditure categories are also set to rise significantly. Contracted services are forecast to increase by 23.6%, while capital outlay and operating costs are expected to grow by 178.9% and 219.6%, respectively.

Despite these rising costs, district officials noted that the proposed 2025–26 budget does not include any additional salary increases for teachers beyond what is mandated through House Bill 2. Officials said the district has invested more than $96 million in employee compensation increases since the 2019–20 school year, peaking at $22.4 million in 2021–22. The district anticipates spending $13 million on raises in 2024–25.

The district’s fund balance is projected to total approximately $161 million by the end of the current fiscal year. GISD is projecting a $54.9 million shortfall in 2025–26, down from $88.9 million in 2024–25.

During the workshop, officials highlighted several unmatched and underfunded student programs that contribute to the district’s budget deficit. These programs, often mandated or necessary to meet student needs, are not fully funded by the state, creating structural funding gaps the district must cover with local resources.

The district is proposing an increase in the total tax rate for the 2025–26 school year. The estimated rate of $1.1562 per $100 of assessed property valuation would be up from $1.0509 in 2024–25. This total includes the Maintenance and Operations (M&O) rate, which funds day-to-day operations, and the Interest and Sinking (I&S) rate, which supports debt service.

The highest rate the district can adopt before requiring voter approval at an election is $1.051448. A tax rate election would be automatically held if the district adopts a rate more than the voter-approval rate.

A public meeting to adopt the 2025–26 budget and tax rate is scheduled for 5 p.m. June 24 at the Harris Hill Administration Building – Annex, 601 S. Jupiter Road.

For more stories about the Sachse community see the next print, or digital edition of The Sachse News. Subscribe today and support local journalism.