Harlingen school district fund balance climbs to $36.7 million

HARLINGEN — The school district’s fund balance has jumped to $36.7 million, up from $17.5 million a month ago.

Last month, the district received $18 million in maintenance tax proceeds, boosting its cash reserves, Ida Ambriz, the interim assistant superintendent of business services, said Thursday.

The fund balance soared after dipping in February, when state funding came in at $6 million, down from its usual $12 million.

During March, the district, with a $46.5 million property tax levy, saw its tax collection climb to $41.9 million, marking a 90% collection rate.

Since the school year opened July 1 with a $17.7 million fund balance, the district’s cash reserves have climbed by $19 million, its budget shows.

In March, the district’s general fund revenues climbed to $185.3 million, matching its expenditures.

For about six months, officials have been working under a new fiscal plan, cutting costs while trying to build up the budget’s fund balance.

In late August, school board members found out former Superintendent J.A. Gonzalez’s administration had withdrawn $23.2 million in cash reserves to cover operating costs including unbudgeted expenses, dropping the fund balance as low as $17.2 million.

From 2022 to 2024, the district’s fund balance plunged from $48.3 million to $17.2 million, its level when the school board passed the current $215.3 million budget last June, Noe Hinojosa, the district’s financial advisor with Estrada Hinojosa, told board members in a January report.

At the time, he projected a period as long as three to five years to build back the budget’s fund balance.

“We’ve had to take this entire year and look at every department to look for cost savings,” Superintendent Veronica Kortan said Thursday.

As officials work to prepare next year’s budget set for the school board’s approval in late June, they’re planning to earmark money for employee raises.

Last year, many teachers said they were passed up for raises.

“The board has set that as a priority,” Kortan said in an interview. “We need a compensation plan to include a cost-of-living increase. That’s one of the big considerations right now.”

Now, officials are preparing the district’s new budget along its compensation plan.

“We are working on projecting final budget numbers, setting options for all staff members and monitoring the state legislation for more information on possible future funding,” Ambriz told school board members during a meeting Tuesday.

Like districts across the state, the focus here is on Senate Bill 26, which could give teachers with at least three years of service about $2,500 raises while giving those five or more years about $5,500.

“We will continue to review all budget numbers, setting options for all staff members and monitoring the state legislation for more information on possible future funding,” Ambriz told board members.

So far, the Senate’s approved the bill, which now awaits a House vote.

“If this bill is passed, it could potentially provide additional funding for teacher raises, the teacher merit pay program, special education funding, pre-k access and teacher liability protection,” Ambriz said.

Across the district, officials are reviewing expenses.

This year, they cut $1.1 million in instructional software costs after setting new procedures for purchases and license renewals, Ambriz said.

As they plan next year’s budget, those new procedures, including needs assessments, evaluations and purchases based on funding requests, are estimated to bring about $98,000 in savings, she said.

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