San Angelo ISD Addresses $3.2 Million Budget Deficit

SAN ANGELO, TX — San Angelo ISD trustees unanimously adopted a lower 2026-27 tax rate Monday night and, in a separate 7-0 vote, approved a general-fund budget that spends about $3.2 million more than it takes in. 

Board President Taylor Kingman said the deficit is the result of two earlier decisions: a $1,000 stipend for all employees and a plan adopted a year ago to slowly improve efficiency in classrooms and the number of campuses.

SAISD has closed Alta Loma, Austin and San Jacinto elementary schools in the last year, and Bowie and Reagan elementary schools will close at the end of this school year.

“There’s really no way to have a balanced budget until we get the campus locations correct,” Kingman said. He said the district has been “judicious” with ESSER funds and that the money exists “to put it into our kids, put it into our staff.”

“By adopting a deficit budget, we’re able to take care of our employees, and not to make cuts on our families or students in a drastic manner as some districts are having to do across the state," he said.

Trustee Bill Dendle also noted a modest revision from earlier enrollment projections. 

Dendle made the tax-rate motion, saying school districts must live within the no-new-revenue limit unless voters approve a higher rate. Board comments after the vote emphasized that the district has historically tried to lower the rate — described as about a cent this year — while funding students and staying within its means. 

The board set the total rate at $1.0638 per $100 of assessed valuation, down from $1.0706 in 2025-26. The new rate is split $0.7054 for maintenance and operations and $0.3584 for debt service. The interest-and-sinking portion is unchanged from last year. The adopted rate sits between the no-new-revenue rate of $1.021898 and the voter-approval rate of $1.076108.

Deputy Superintendent for Finance and Operations Merl Brandon told the board that general-fund revenue is projected at $127,143,762 after a drop in student enrollment, with expenditures of $130,422,348. Officials said they will work during the year to shrink the gap. 

The child nutrition budget still shows a $161,000 deficit after earlier adjustments from about $300,000, which Brandon tied in part to a higher meal price. Debt service is projected to collect just over $28 million, with bond payments slightly lower, producing an estimated $650,001 gain to the interest-and-sinking fund balance. 

A published notice of the public meeting said the amount budgeted for maintenance and operations is down 3.97%, or $5,491,538; debt service is down 0.43%; and total expenditures are down 3.37%. 

The budget and tax-rate ordinances were approved in separate unanimous votes during the Aug. 24 regular meeting at the SAISD Administration Building, 1621 University Ave. The next pre-agenda workshop is Sept. 1, with the next regular meeting Sept. 21.