Lamar CISD officials project $875K surplus for FY 2025-26 following state aid

The district’s revised general fund revenue is now projected at $535.8 million, with expenditures totaling $535 million, Ludwig said.

Ludwig said the district’s revised general fund budget now includes:

• An increase of $30.7 million in state revenues, due to House Bill 2
• A decrease of $2.7 million in local revenues, due to homestead exemptions—increasing from $100,000 to $140,000 for general homesteads and from $10,000 to $60,000 for seniors and disabled individuals—on the November ballot
• An increase of $27.8 million in overall expenditures to cover salary increases, travel reimbursements for staff and facility improvement projects that were previously cut

By the numbers

Salaries and benefits account for about 85% of the $534.96 million total expenditures in the budget, according to the presentation.

Meanwhile, about 60% of the district's $535.8 million revenue is sourced from the state, followed by an expected $213 million in local revenue.

The financials

The board also approved a $1.1469 per $100 of valuation tax rate that includes:

• $0.6669 for maintenance and operations, or M&O
• $0.48 for interest and sinking, or I&S

Despite no change in the tax rate, Ludwig said residents may still see higher tax bills due to increased property valuations across Fort Bend County. She noted a 1.79% increase in taxable property values compared to the previous year. However, without the proposed exemption adjustments, she said the increase would have been over 9%.

Ludwig said reducing even 1 cent would result in a loss of approximately $3 million, compounded by a reduction in state aid—a move that would strain operational needs and possibly require cuts.

“I’d love to cut half a cent, even today,” trustee Jon Welch said. “But I trust the administration— this is as low as we can responsibly go while still functioning properly.”

Taking a step back

Prior to the passage of HB 2, the board also approved a flat $2,000 pay raise in May for the district's existing teachers and a 3% midpoint raise for staff, including instructional aids.

The passage of HB 2 mandated $2,500 for classroom teachers with three to four years of experience and $5,000 for classroom teachers with five or more years of experience.

Additionally, Ludwig said trustees approved tiered raises from the bill's staff retention allotment, including:

• $1,000 for new teachers with zero to two years of experience
• $500 for other certified staff on the teacher pay scale, such as counselors, nurses and librarians
• $825 for non-administrative staff such as paraprofessionals, custodians, food service workers and bus drivers

FY 2025-26 will begin Sept. 1, Ludwig said.