The KIPP Texas Board of Directors on Aug. 28 ratified implementation of HB 2 teacher salary-scale adjustments and unanimously approved the school year 2025–26 finalized budget, which incorporates a $3,000,000 revenue increase matched by $3,000,000 in expenses to reflect the state Teacher Retention Allotment (TRA).

Board members heard that the system sent reoffer letters to teachers on Aug. 8 that reflected the HB 2 adjustments and that payroll reflected those increases on Aug. 15. Anne Scott, chief talent officer, said the organization responded to about 130 employees — out of nearly 1,600 teachers — who sought clarification about how HB 2 was applied: “We were able to respond to and correspond with all 130 and resolve issues, to their satisfaction,” Scott said.

The board’s CFO, Sun Han, told trustees the district’s aim in presenting the amended budget was compliance with the TRA while avoiding a premature reforecast of the deficit. “Our goal today is to ensure compliance with HB 2, the teacher retention allotment or TRA, raises during our first payroll not to reforecast the deficit,” Han said. He said the budget includes an additional $3,000,000 on both the revenue and expense sides to allow the $2,500 or $5,000 increases to be paid, depending on teacher experience.

Board members asked about cash flow and coding of expense lines. Tim Kopra asked whether the state payment timing could create working-capital issues; Han replied that the organization maintains more than 100 days cash on hand and does not expect the delay to strain operations. Paul Dahl asked whether the $3,000,000 entries were a straight offset; a finance staff member confirmed the revenue was added to a single line and the expense flowed through multiple functional lines depending on teacher coding.

Sun Han told the board the district expects clearer deficit information after the Texas Education Agency issues an updated Summary of Finance in late September or early October and said the board would receive a follow-up at the November 2025 meeting of the finance working group and the full board.

The board moved to adopt the SY2025–26 finalized budget as presented; the motion carried unanimously.

The budget vote was taken during the open session. No formal amendments to the budget were recorded during the meeting. The board approved the consent agenda and then adjourned to executive session under Texas Government Code §551.071 et seq.; trustees returned to open session and adjourned at 6:01 p.m.