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Board reviews budget outlook and approves 2025–26 compensation plan amid federal grant uncertainty
Summary
District finance staff presented a draft budget based on $182 million in revenue, reported federal grants under review, and the board approved a 2025–26 compensation plan that raises the starting teacher salary to $61,000.
Southwest Independent School District finance staff told trustees they are building the 2025–26 budget around an estimated $182,000,000 in revenue but warned that certain federal grant funds are temporarily on hold pending federal review. The board approved a 2025–26 compensation plan after discussion, while tax-rate decisions were left for later meetings.
Scott, the district financial presenter, said officials learned in recent weeks that a federal decision would delay or freeze roughly $1.25 million in previously expected grant funding; staff are currently planning to cover salaries that had been intended to be paid with those funds but are putting non-salary spending on hold until the grants are confirmed. The draft budget presented to trustees showed a roughly $2,000,000 operating deficit when the frozen federal funds are excluded.
On compensation, staff proposed a districtwide plan that includes a teacher starting salary increase to $61,000 (up from $60,000) and an increase in the proposed uncertified starting rate (from $57,000 to $58,000 in staff materials). The compensation presentation described a typical 2% across-the-board increase as approximately $1,400 per position on the teacher scale; the board approved the compensation plan in a voice vote.
Trustees and staff also discussed the interest-sensitivity (I&S) tax rate and limits introduced by recent state legislation; presenters said the I&S rate at the current level would generate about $31,000,000 and noted a possible loss of about $3,600,000 in state aid under some rate scenarios. Officials said they are continuing analysis with outside advisors and would present recommendations at upcoming budget meetings.
Why it matters: salaries and federal grant decisions materially affect the district’s ability to staff schools and fund programs. The approved compensation plan sets the district’s pay scale for the coming year and will be factored into final budget adoption.
What’s next: staff said they plan to return with a final budget and tax-rate recommendation in August and adopt fiscal-year actions by late August; any unconfirmed federal funds will be reflected in subsequent budget adjustments.
Speakers quoted here and cited in the meeting materials are listed in the speaker section.
