The Midway ISD Board of Trustees at its regular June meeting adopted the district's 2026-27 budget, a spending plan that prioritizes employee compensation, student services and classroom instruction while addressing ongoing challenges in state public school funding.
The General Fund budget includes $95.6 million in revenue and $98.2 million in expenditures, resulting in a projected deficit of approximately $2.6 million. Nearly $2 million of that deficit is attributable to the compensation plan approved by the Board earlier this year, which includes a 2% General Pay Increase, market adjustments and retention incentives.
"Our people make a difference for students every day," Superintendent Dr. Chris Allen said. "Even in a challenging funding environment, the Board has made investing in our employees a priority."
The largest portion of the budget is dedicated to classroom instruction, with more than $58 million allocated directly to teaching and learning. Additional funding supports student transportation, counseling services, campus leadership, school safety, technology and facility operations.
Like many school districts across Texas, Midway continues to face rising operational costs as state funding has not kept pace with inflation and increased expenses. Since 2019, Midway ISD has seen a more than 200% increase in costs related to school safety and property casualty insurance, a 50% increase in fuel costs and other significant cost increases in health insurance, utilities and more. Despite those challenges, the district remains in a strong financial position with a projected ending General Fund balance of more than $25 million.
The Board also adopted the district's Child Nutrition and Debt Service budgets, both of which are projected to end the year with positive fund balances. The Debt Service budget includes an estimated $1 million to pay off a portion of the district's bond debt early, a move that will reduce future interest costs and debt obligations.
The adopted budget is based on anticipated tax rates of $0.6437 for Maintenance and Operations, a decrease from the current tax rate, and $0.24 for Interest and Sinking. The Board will consider adoption of the tax rate in August.
