OISD adopts $11.3M budget, expects surplus
The Olney ISD Board of Trustees adopted its 2026-27 budget Aug. 27, projecting that the district’s general fund will finish the year with a modest surplus.
Superintendent Dr. Matt Caffey told trustees the final budget was similar to the version they reviewed during their July meeting and subsequent budget workshop, but had been updated with more accurate salary figures and additional spending cuts.
The general fund anticipates about $11.4 million in revenue against approximately $11.3 million in expenditures, leaving a projected surplus of about $116,000. The district also expects its food service program to essentially break even.
Chief Financial Officer Tim Orsak said the district’s cash position will remain tight in the short term. The district recently received a final foundation payment of about $1.08 million, which is expected to help cover payroll until the next round of foundation payments begins arriving in October. The first October payment was expected to be slightly more than $2 million. Mr. Orsak told trustees the district might have to borrow a small amount temporarily to make payroll before those payments arrive.
The district also continues to manage the remaining expenses associated with its construction program. Officials said two major payments remained, along with a 5-percent retainage, and the bond construction account had fallen to about $2.4 million.
OISD sets tax rate, plans early bond payoff
Olney ISD trustees approved a combined property tax rate of $0.94540 per $100 valuation for the 2026-27 fiscal year.
The rate consists of a Maintenance and Operations rate of $0.75540 and an Interest and Sinking rate of $0.19000 per $100 valuation. Trustees approved the two rates separately.
The board also approved a resolution directing I&S tax collections not needed for annual bond payments to be invested and accumulated for the allowable early retirement of district bond debt.
Dr. Caffey told trustees the district expects the tax structure to generate roughly $140,000 in additional revenue that ultimately can be applied toward decreasing debt.
The district recently had to transfer about $130,000 from its general fund into debt service to make an August interest payment. Mr. Orsak said subsequent tax collections could allow approximately $70,000 to be returned to the general fund. The district’s auditor recommended treating the money in a way that allows the general fund to be repaid as tax revenue arrives.
The strategy is intended to protect the district’s general-fund balance while allowing excess tax collections to accumulate for an eventual early bond payoff.
OISD earns fifth straight superior financial rating
Olney ISD received an A, or Superior, preliminary rating under the state’s Financial Integrity Rating System of Texas, commonly known as FIRST.
The district scored 90 and earned the top designation for the fifth consecutive year, according to information presented to trustees Aug. 27.
The district received full credit on nearly all of the state’s financial indicators but lost points on a new measure comparing actual revenue with budgeted revenue.
Dr. Caffey explained that the problem was unusual: OISD collected substantially more money than it had budgeted.
For 2022-23, the district budgeted approximately $9.6 million in revenue but actually received roughly $11.7 million. The additional revenue included about $360,000 in unexpected interest income as interest rates rose, COVID-related administrative reimbursements, miscellaneous income and additional state funding.
A major factor was the final settlement of the district’s Chapter 313 agreement with a wind-energy project. Attorneys determined that the agreement entitled OISD to additional revenue based on the tax savings received by the wind farm, resulting in roughly another $1.1 million payment to the district.
Despite losing points because actual revenue exceeded the budget forecast by more than the state’s permitted margin, OISD still received the state’s highest overall financial rating.
OISD enrollment climbs after slow start
Olney ISD enrollment rebounded during the first days of school after initially coming in close to the conservative figure district officials used to build the 2026-27 budget.
The district budgeted on an enrollment of 605 students, although officials had hoped enrollment would reach 615 or higher. Trustees were told enrollment began around 615 and continued climbing during the opening days of school.
The draft minutes show average daily attendance of 614 students from Aug. 12 through Aug. 21, although that represented a decrease from May 2026.
Trustees also examined three years of attendance data and discovered a consistent pattern: attendance tends to take its biggest drop during the fourth six-week grading period.
Dr. Caffey said seeing the historical figures together gave administrators useful context because the district has repeatedly noticed the midyear attendance decline without comparing it against previous years. Board members discussed illness, particularly cold and flu season between Christmas and spring break, as one possible explanation.
The district plans to continue adding each six weeks’ attendance figures to the historical report so trustees can see whether attendance improves or declines compared with previous years.
OHS earns A; district receives B accountability rating
Olney High School led the district in the state’s latest accountability ratings, earning an A with a score of 94, while Olney ISD overall received a B with a score of 87.
Olney Junior High earned a B with a score of 86, while Olney Elementary received a C with a score of 78, according to the accountability results reviewed by trustees Aug. 27.
Dr. Caffey said the junior high’s score was a high B and noted that the campus earned several distinctions. He said administrators nevertheless are aiming for an A next year.
At the elementary school, the district has made changes to curriculum and instructional coaching that administrators hope will improve future STAAR performance.
One focus is math instruction. Dr. Caffey said the district is using a teacher who has consistently produced strong student growth to coach other elementary math teachers and identify instructional practices that can be replicated in their classrooms.
Writing also remains a focus. Administrators said students sometimes produce well-written STAAR essays but lose points because they fail to directly answer the prompt or provide the evidence required by the scoring rubric. Teachers are working with Region 9 and emphasizing that students need to understand exactly how their writing will be scored.
The district also has begun using the “Patterns of Power” approach in grades one through five, which emphasizes exposing students to examples of correct grammar and asking them to identify and apply those patterns in their own writing.
OISD installs weather system to protect athletes
Olney ISD has installed its own weather- monitoring station at Cub Stadium to comply with UIL heat-safety requirements and give coaches more precise information about dangerous weather.
The Perry Weather station sits atop the stadium press box and measures conditions including temperature, precipitation, wind and wet-bulb readings. It also includes a camera overlooking the football field and lightning detection.
Chief Financial Officer Tim Orsak said the district previously relied on an app for wet-bulb information, but officials could not be certain how locally the readings were being taken. In Olney’s case, the nearest reading could have come from Graham.
UIL now requires wet-bulb conditions to be checked 15 minutes before outdoor practice and every 30 minutes during practice, with the readings recorded. The requirements are intended to reduce the danger of heat-related illnesses.
The district negotiated a four-year arrangement with Perry Weather after the company initially quoted about $6,000 per year. OISD agreed to a longer commitment after negotiating the fourth year at no additional charge, allowing the district to make one payment rather than carry another annual expense.
The system also alerts coaches through their phones when lightning is detected, provides the distance of the lightning and starts a countdown consistent with UIL safety rules.
The service includes weather forecasts and access to a meteorologist, and OISD coaches can access other Perry Weather stations when traveling to facilities that use the system.
District earns low-risk federal financial designation
Olney ISD received a Low Risk designation in its annual federal financial risk assessment.
Dr. Caffey presented the assessment to trustees during the Aug. 27 meeting as part of the district’s regular financial oversight.
The designation is separate from OISD’s FIRST financial accountability rating and evaluates the district’s management of federal funds. The board took no action on the report because it was presented as an information item.
The report was one of several financial oversight items on the Aug. 27 agenda, along with the district’s preliminary FIRST rating and Texas Municipal General Obligation Report.
Board renews SB 12 resolution
Olney ISD trustees renewed the district’s resolution concerning compliance with Senate Bill 12 during their Aug. 27 meeting.
Dr. Caffey told trustees the resolution requires him to attest annually to the district’s compliance with provisions contained in the law. The resolution contained a series of certifications the superintendent was required to answer before the board approved it.
Trustees unanimously approved the resolution.
The SB 12 resolution was one of several annual policy and operational matters on the board’s August agenda.
OISD approves TMSCA office lease, emergency plan
Olney ISD trustees approved a lease agreement providing office space to the Texas Mathematics and Science Coaches Association following a closed-door discussion Aug. 27.
The board entered executive session at 7:13 p.m. to discuss the lease negotiations and the district’s Emergency Operations Plan and returned to open session at 7:46 p.m.
Trustees then unanimously approved the TMSCA lease agreement and the updated Emergency Operations Plan.
The Emergency Operations Plan was initially scheduled earlier among the board’s action items, but trustees postponed the discussion until the end of the meeting because details of the plan involved school security.
The board also authorized Chief Financial Officer Tim Orsak to make necessary year-end budget amendments associated with the district’s 2025-26 financial audit and report those changes back to trustees.
Junior high drainage fix in the works Olney ISD officials said contractors have developed a plan to correct water pooling between buildings as work on the district’s construction project moves toward completion.
The construction project was not listed as a discussion item on the Aug. 27 agenda, so trustees limited their questions at the end of the meeting to factual updates rather than deliberating about the project.
Asked for a completion date, Dr. Caffey said he had not been given a firm deadline and could only describe completion as coming “soon.”
Trustees also asked about drainage problems around the new construction. Dr. Caffey said contractors had presented a plan two days earlier to install gutters and reroute water around the building and toward the parking lot so it would no longer pool between the two buildings.