SEGUIN, Texas (June 18, 2025)—The Seguin ISD Board of Trustees adopted its 2025-2026 budget during its regular meeting on Tuesday, June 17, 2025. The $84.9 million budget includes a $5.8 million deficit, which is subject to change due to recent legislative changes.
Elizabeth Banks, Seguin ISD interim superintendent and chief financial officer, says that the deficit total includes $2.9 million in budget additions deemed necessary and/or unavoidable, as well as step increases for teachers, and the estimated $2.8 million deficit that is the current 2024-2025 budget which serves as the starting point for the 2025-2026 budget.
“Those budget additions include rising costs that everyone is facing in our current economy, as well as staffing and resources we need to meet needs on our campuses,” Banks said. “We want to ensure that we still provide for our students and staff.”
Banks says the district’s business department and leadership team are looking at all possible options to reduce the deficit, including potential funding opportunities in Career and Technical Education (CTE). Seguin reduced its 2024-2025 deficit by $1.2 million, which included efforts to optimize CTE funding.
The board is considering a Voter-Approved Tax Ratification Election (VATRE) to maximize the district’s Golden Pennies for state funding. Banks says passing a VATRE would provide an additional $2.5 million or more annually.
Texas law requires school districts to pass a budget before a new fiscal year; Seguin ISD’s fiscal year begins July 1. Given the recent legislative changes, the district will amend its budget after July 1, 2025.
“This is the first version of our budget; the Texas Education Agency has started sharing guidance on House Bill 2. This budget is simply a placeholder. Substantial budget amendments will come to the board for approval in August,” Banks said. “We are reviewing that guidance to help us determine how HB 2 funding will affect staff compensation and revenue, and then we will adjust the budget accordingly. Our goal is to have a clear outline from TEA and a compensation plan ready before September, when a majority of our staff begin their new contract.”
Banks and the Board of Trustees will work with Dr. Jack Lee, the lone finalist for Superintendent, on potential amendments. The Board is scheduled to hold a final vote on his hiring at a special meeting on July 10.
