San Angelo ISD Trustees Adopt Balanced Budget, Set New Tax Rate

SAN ANGELO, TX — San Angelo ISD trustees approved a balanced $138 million budget and set the 2025–26 school year tax rate at $1.0706 per $100 valuation during their regular meeting Monday.

The budget keeps general fund revenues and expenses level at $138 million, an increase of $5.7 million from last year. Chief Financial Officer Merl Brandon said the gain comes mostly from additional state funding under House Bill 2, which is earmarked for teacher and instructional staff raises.

Of that increase, about $4.4 million will go directly to classroom teacher pay, with benefits and other positions making up the remainder. Payroll accounts for 81% of district expenses. Brandon noted that percentage is below many Texas districts, where staffing costs typically exceed 85%.

Trustees also approved the new tax rate, which is divided into $0.7122 for maintenance and operations and $0.3584 for interest and sinking to cover bond debt. The rate remains under the state’s voter-approval cap of $1.08.

While the bond raises the debt service portion of the rate, Brandon said expanded homestead exemptions approved by lawmakers will lower many homeowners’ bills. The exemption rose from $100,000 to $140,000 for most property owners and up to $200,000 for those 65 and older. The average taxpayer is expected to see a $25 decrease compared with last year, despite the higher rate.

The child nutrition fund projects a shortfall of $327,000, which will be covered by reserves. The debt service fund remains balanced. The district’s current unrestricted fund balance is about $52.9 million, with $4.7 million restricted.

Board Secretary Bill Dendle said the district is “blessed” to operate without a deficit at a time when many Texas districts are approving budgets in the red.