Waco ISD discusses funding impacts from House Bill 2 and salary increases

The Waco Independent School District (Waco ISD) Board of Trustees convened on June 18, 2025, to discuss significant funding changes and their implications for local schools. A primary focus of the meeting was House Bill 2, which allocates $8.5 billion in new state funding, with substantial portions directed toward teacher compensation and special education.

The bill designates $4.2 billion for teacher compensation, emphasizing retention for experienced educators. Teachers with three to four years of experience will receive a $2,500 increase, while those with five or more years will see a $5,000 boost. However, teachers with less than three years of experience will not benefit from these increases, which may necessitate additional funding from the district's reserves to support them.

Waco ISD anticipates receiving approximately $3.3 million from the new funding, but the district's financial landscape remains complex. The board highlighted the need to carefully manage coding for teachers to ensure the district maximizes its allotments. Additionally, the support staff retention allotment will provide only $430,000 for salary increases, which is insufficient for the majority of non-administrative staff.

The meeting also addressed changes in property tax legislation, including an increase in the homestead exemption, which could lead to a decrease in maintenance and operations taxes for the district by about $3.9 million. This reduction in tax revenue raises concerns about the district's ability to maintain funding levels for essential programs.

In terms of special education, the board discussed a new funding model that will be implemented in the 2026-2027 school year, which aims to revamp service delivery. This includes a $1,000 allocation for each child undergoing a full evaluation, which is expected to support existing special education programs.

The board concluded with a review of the budget calendar, emphasizing the importance of timely communication with staff regarding salary changes and the financial challenges ahead. The district is projected to face a deficit of around $6 million, prompting discussions on budget cuts and resource allocation.

As Waco ISD navigates these funding changes, the board's decisions will significantly impact teachers, staff, and students, highlighting the ongoing challenges of balancing educational needs with financial realities.