MERCEDES, Texas - At a time when school districts across Texas are facing growing financial pressures and adopting deficit budgets, Mercedes ISD is entering the 2026-2027 school year with a balanced budget for the second year in a row.
The Mercedes ISD Board of Trustees approved a balanced budget of $59.27 million during its regular meeting on Tuesday, August 18, 2026. The budget reflects continued efforts to align district expenditures with available revenues while maintaining resources for students, schools, and employees.
“Passing a balanced budget for the second year in a row is significant,” said Interim Superintendent Dr. Alicia Noyola. “It reflects the careful planning and thoughtful decision-making of our administration and Board of Trustees as we align available resources with the needs of our students, staff, and schools.”
The balanced budget comes as school districts across Texas continue navigating financial challenges, including rising operational costs, enrollment changes, and evolving state funding considerations that affect staffing, programs, student services and day-to-day operations.
“School districts across Texas are facing difficult financial decisions, and Mercedes ISD is no exception,” Noyola said. “Our focus is on meeting the needs of our district today while building on the financial progress we have made over the past two years.”
The district was also able to incorporate additional employee compensation within the balanced budget. The 2026-2027 Employee Compensation Plan, approved earlier this summer by the Board of Trustees, includes a one-time $1,000 payment for teachers, nurses, librarians and non-teaching professionals, a 2% midpoint increase for hourly employees, and three designated wellness days for all district staff.
The Board also approved a tax rate of $1.0971 per $100 of property valuation during Tuesday’s meeting. The 2026 tax rate continues the district's overall trend of lowering its tax rate, which stood at approximately $1.3520 per $100 of property valuation in 2021-2022.
Together, the balanced budget, employee compensation plan, and lower tax rate reflect the district’s ongoing focus on responsible financial management while supporting Mercedes ISD students, employees, and the community.