District financial and human-resources leaders updated trustees on the budget outlook and compensation planning tied to state House Bill 2 and other legislative changes.

Where the budget stands: Dr. Wilkins (presenting budget calculations) said certified values received in July produced a roughly 8% decrease in the certified calculation used for state budgeting; the district estimates about $89 million in tax collections for the coming year and roughly $22 million in foundation funds from the state. After accounting for funds that pass through directly to teachers, staff projected a roughly $1.9 million general-fund deficit under current assumptions but warned that guidance from the Texas Education Agency (TEA) on multiple House Bill 2 implementation elements is still incomplete and could change the figures.

Why it matters: staff said much of the new state funding is designated for teacher pay and pass-throughs; outstanding TEA guidance on several programs (early education stipends, math academies, other stipends) could still alter the district’s fiscal picture. Dr. Wilkins emphasized that the $1.9 million shortfall already assumes the available new funding and noted the district will continue to refine the numbers as TEA releases rules.

Compensation planning: Crystal Floyd, executive director of human resources, described current pay structures (step schedules and range schedules) and recommended options for greater flexibility. Floyd said some positions currently on the step schedule (for example, counselors, diagnosticians, LSSPs and librarians) could be moved to the range schedule without reducing current pay, which would allow more flexibility to adjust pay for additional certifications or qualifications.

Floyd presented one illustrative change: increasing the starting pay for Instructional Support 1 positions (IS1) to $13.50 would cost roughly $500,000. The HR team said it is continuing to finalize cost estimates with TASB and will provide detailed numbers to the finance committee and the full board before the August 28 meeting.

House Bill 2 mechanics and uncertainty: Dr. Wilkins explained that TEA guidance on the mechanics and dollar amounts tied to House Bill 2 has changed frequently; for example, guidance on amounts for math academies and early education stipends changed several times in a short period. District staff said some TEA guidance will not be available until late 2026, complicating long-range budgeting. Staff said the district must balance making timely compensation commitments for employees with the uncertain timing and substance of state guidance.

Process and next steps: staff will continue to refine cost estimates, work with TASB on compensation-model implementation and present detailed proposals to the finance committee and then the full board before the August 28 adoption date. Floyd said any movement of non-0 87 positions to the range schedule would preserve current compensation levels at the time of the move but provide administrators flexibility for differentiated pay going forward.

Discussion vs. action: the workshop was informational; trustees asked clarifying questions about homestead-exemption assumptions, revenue projections and comparative pay with neighboring districts. Staff said they will bring final recommendations for board consideration and implementation timelines in August.