San Benito pulls $10 million out of cash reserves to pass $116.5 million general fund budget

San Benito CISD Assistant Superintendent of Finance and Operations Victoria Perez

SAN BENITO - Facing a $5 million cut in state funding, the school board pulled more than $10 million out of its fund balance to pass a $116.5 million general fund budget, one of the district's "toughest" budgets in years.

To balance the budget, officials pulled $10.2 million out of the district's $42.3 million fund balance, Vicki Perez, the district's assistant superintendent for finance and operations, told a small audience during a public hearing Tuesday, adding about $5 million in cash reserves was set aside to cover one-time expenses.

Last year, the district's fund balance stood at $40.7 million.

As part of the budget, officials are estimating state revenues to come in at $96.6 million, down from $101.9 million the previous year.

"It's probably the toughest budget I've developed," Perez said Wednesday in an interview. "There's a lot of state funding issues and there's the decline in enrollment and (average daily attendance). It's statewide."

In September, board members are planning to set the district's property tax rate.

As the district closed its 2025-26 school year, enrollment stood at 8,524 students, Perez said.

Meanwhile, students' average daily attendance was at 7,520 students.

As part of a formula, the state gives the district about $6,200 a year for every student attending class.

Entering the new fiscal year, officials are projecting enrollment to remain at 8,524 students, with average daily attendance estimated at 7,300 students.

"The kids have to come to school in order for us to get paid," school board President Orlando Lopez told the audience Tuesday, referring to state funding based on average student attendance.

The San Benito school board are seen Tuesday, June 30, 2026, during a regular board meeting. (Courtesy photo)

"We're going to continue to push for that," he said. "It's extremely important when it comes comes down to our finances for our district, in order for us to continue to provide our kids with the resources that they need and our staff, so we can stay competitive across the region."

Despite the shortfall in state funding, the school board's giving hourly employees pay increases factored at 4% at midpoint, while teachers are receiving pay increases at 3% at midpoint, with administrators and professionals getting 2% pay increases at midpoint, Perez said in an interview.

As part of the district's overall budget, officials are projecting $137.69 million in revenue, up from $134.6 million the previous year, covering $137.69 million in expenditures.

Topping the district's expenses, they're setting aside $62.1 million to fund student instruction, making up 46.49% of the budget, Perez told board members during Tuesday's public hearing.

Under the budget, officials are projecting local revenue, including $11.1 million in taxpayer dollars, to come in at $17.6 million.

Meanwhile, state funding is projected at $96.6 million, down from $101.9 million the previous year, with federal revenue coming in at $11.7 million, up from $10.5 million.

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This story was originally published July 2, 2026 at 1:03 AM.