During a June 15 meeting, the San Marcos CISD board of trustees approved the district’s 2026-27 budget with a planned shortfall in both the general fund and food service.
The approved budget estimates approximately $92.89 million in general fund revenues and $95.18 million in expenditures, resulting in a planned shortfall of about $2.29 million, according to agenda documents.
The overview
The budget includes a previously approved staff compensation plan that provides a staff-wide salary increase and decreases the district’s monthly insurance contributions.
The food service fund will operate with an estimated $6.57 million in revenues and $6.85 million in expenditures, resulting in a planned shortfall of approximately $275,000.
The district’s debt service budget is expected to result in a $1.3 million surplus, with $30.23 million in expected revenues and $28.93 million in expenditures. Funds from the debt service budget may only be used for those purposes and can not be put toward general operations.
“The proposed deficit is significantly lower than deficits presented in recent years, and reflects the administration's efforts to align expenditures with available revenues, while continuing to meet the needs of our students and staff,” Chief Financial Officer Denise Gonzalez-Garcia said.
San Marcos CISD’s fund balance for the general fund is projected to hold $38.97 million before the 2026-27 budget’s impact. The planned $2.29 million shortfall, in addition to the district expending $2.85 million in other financing resources, will result in a projected ending fund balance of $33.84 million, according to agenda documents.
The district’s food service fund balance is projected to be $172,232 after the planned shortfall is considered, according to agenda documents.
“The proposed budget reflects the district's commitment to maintaining high-quality educational services while addressing ongoing financial challenges facing public education,” Gonzalez-Garcia said.
Diving deeper
The board approved a new staff compensation plan that provides a 2% increase to salaries and reduces the district’s monthly health insurance contribution at a May 18 meeting, according to previous Community Impact reporting.
The compensation plan contributes approximately $2.07 million to the district’s planned budget shortfall, according to agenda documents.
The approved plan includes a reduction in the district’s monthly health insurance contribution cap from $484 per month during the 2025-26 school year to $350 per month under the new plan.
“Overall, this budget represents a balance between financial responsibility, employee compensation, student needs and the operational requirements of the district,” Gonzalez-Garcia said.
Looking forward
The board will vote on the district’s proposed tax rate at a future meeting. SMCISD is proposing a total tax rate of $1.0152 per $100 of taxable property value. The proposed rate shows no change from the current tax rate.
“This reflects the district's continued effort to balance educational needs while maintaining a stable tax rate for our taxpayers,” Gonzalez-Garcia said.
