Special Called Board Meeting

At this morning's special called meeting, the New Home ISD Board of Trustees approved the 2025 - 2026 budget amendments, the balanced 2026 - 2027 budget, and the 2026 - 2027 tax rate. I want to take a moment to explain what these decisions mean and provide our community with a transparent look at the district's financial position.

The 2025 - 2026 budget amendments totaled approximately $1 million. A significant portion of that amount was related to one-time expenditures. During last year's financial audit, $322,852.83 in funds earmarked for construction at Leopard Stadium were moved into fund balance because the revenue was received during the 2024 - 2025 fiscal year. Additionally, the district purchased two school houses: one on Smith Street for $246,212.16 and one on Stadium Drive for $224,065.01. Together, these items account for approximately $793,000 of the proposed budget amendments.

Other factors included higher-than-budgeted substitute costs, changes to coaches' contract structures and the resulting timing of payroll, increased legal expenses, the expiration of grant funding that previously covered a position, and unpaid prior-year invoices and increased costs associated with our Trifecta Integrations camera system (safety).

While nearly $1 million in amendments is significant, it is important to understand that this does not represent a structural deficit or an ongoing year-over-year financial concern. Much of the spending was one-time in nature or represents costs that we can better control moving forward. Last year, New Home ISD added approximately $1.7 million to fund balance, and we continue to maintain a strong financial position. Importantly, our new fieldhouse and two school homes were purchased using existing district resources rather than through additional debt or a tax increase.

There is also significant good news to share. The Board approved a balanced budget for 2026 - 2027, even as approximately 63% of Texas school districts are adopting deficit budgets for the coming year. Additionally, the Board approved a lower tax rate of 1.0553, compared to 1.103440 last year. That represents a meaningful reduction while allowing us to continue investing in our students, staff, facilities, and programs.

Our responsibility is not simply to spend wisely, it is to be good stewards of every dollar entrusted to us by our community. I appreciate the Board's thoughtful consideration of these decisions and, most importantly, the trust our community places in New Home ISD. We will continue to approach our finances with the same commitment to excellence, accountability, and long-term stewardship that we bring to every aspect of our district.