Mesquite ISD approves 2025–26 pay increases and budget amendments amid projected deficit

The Mesquite Independent School District Board of Trustees on July 31 approved a compensation plan and budget amendments that incorporate state funds from House Bill 2 and add district-funded raises, while leaving the district with a projected deficit for 2025–26. The board voted to amend the 2025–26 budget to reflect an $18.4 million increase in projected state revenue and roughly $15.9 million in additional payroll costs tied to the new compensation plan.

Why it matters: District leaders said the state’s formula limits local control over how increased revenue may be used and that most new funds are earmarked for teacher pay and certain mandated areas. That leaves the district still operating with a multi‑million dollar shortfall and facing tougher choices to produce a balanced budget for 2026–27.

The compensation presentation was led by T. J. Reid, executive director of personnel services, who told trustees the state’s HB2 designates roughly $10.8 million toward teacher compensation increases and a roughly $1.2 million support-staff allocation. Reid said “the pie chart identifies that 86% of our revenue goes to payroll cost,” and that the district’s total revenue is about $448,000,000 against roughly $465,000,000 in projected…