Eanes ISD is projected to head into the 2026-27 fiscal year with a financial surplus, following the board of trustees' adoption of the budget June 23.
By the numbers
EISD's new Chief Financial Officer Pete Pape provided three budget scenarios tied to possible compensation plans:
- Option 1: no compensation increase, resulting in a projected budget surplus of $1,579,858
- Option 2: a one-time payment of $700 for eligible employees, resulting in a projected budget surplus of $855,858
- Option 3: a 2% compensation increase, resulting in a projected budget shortfall of $54,297
The board ultimately voted 5-2 for Option 1, with trustees James Spradley and Kelly Marwill casting the dissenting votes.
Under Option 1, EISD's general fund budget is projected to have $169.2 million in revenues and $167.6 million in expenditures, resulting in the nearly $1.6 million surplus.
The debt service budget is projected to have $25.5 million in revenues and $24.8 million in expenditures for a surplus of $676,762. The child nutrition fund is projected to have $5.42 million in revenues and $5.31 million in expenditures for a surplus of $110,203.
Pape said there was $1.5 million in revenues baked into the budget for the sale of a piece of district land, which has not yet been finalized.
The vote for Option 1 included removing the land sale revenues for a surplus of about $80,000. Trustee John Troy said waiting to provide a one-time payment would ensure that the budget doesn't inadvertently dip into a shortfall, since it is relying on the land sale, which should be finalized later this year.
However, Spradley and Marwill both expressed not wanting to adopt a budget without a staff increase.
"We were elected to make tough decisions," Spradley said. "This is one of those cases. I get it that there's $1.5 million in there that we don't know about, but there are a thousand things in that budget we don't know about. There's a thousand things that are unknown at this point."
Another detail
In April, the board discussed holding off on implementing staff raises until later in the year to keep a cushion in the fund balance.
Under Option 1, EISD's fund balance is projected to be 25.7% in 2026-27, just slightly above its 25% target. However, the balance would still dip to 23.6% in 2027-28 and 19.8% in 2028-29.
"Staff also wants stability," Troy said. "They want to know, 'Do I have a job? Am I at risk of getting cut?' It's not just raises. ... When you eat into the fund balance, you put their very employment at risk. ... The way to best serve staff at this time is to not give the raise. ... I know that sounds counterintuitive, but it helps bring stability to an employer, and it helps ensure that we can then do more this coming year."
What else?
The board will adopt the tax rate later this summer once the district receives the certified values from the appraisal district. The projected rate is $0.8322 per $100 valuation.
Pape added that the Texas Legislature will reconvene for a new session in 2027, which could potentially bring an opportunity for additional state funding.
The board also postponed voting on a compensation plan until the Aug. 18 meeting, when it will consider a one-time payment for eligible staff.
