Round Rock ISD delays pay plan as state funding shifts leave budget gap

Trustees of the Round Rock Independent School District heard public concern about staff pay and postponed final action on a district compensation plan as rapid changes to state funding left the district—udget projection uncertain.

At the start of the meeting, Tammy Conrad, identified as a Round Rock ISD employee and president of Education Round Rock, told trustees the district—s current proposal "is less than the inflation rate" and warned that some employees would effectively face a pay cut unless the plan changes. "Given that the inflation rate in Texas has been 2.3% over the past 12 months, we find it hard to believe that what is being proposed... is less than the inflation rate," she said.

The board—s budget staff told trustees the district—s baseline, worst-case projection without additional state funding showed the district in the red by $11,000,005.68. Dennis (presenting the budget) told the board, "this is not a proposed budget" and said the presentation represented a conservative scenario to show the scale of any shortfall if the Legislature did not approve significant new funding.

Why it matters: The state budget changes discussed during the meeting—principally the rapid revision of House Bill 2 in the Texas Senate—affect the district—s ability to add salary increases for teachers and classified staff. Administrators said they were still modeling multiple scenarios and requested time to return with updated compensation options tied to the final state outcome.

What trustees heard and did: Public comment from Education Round Rock focused on the morale impact of low or no raises for low-paid staff and the need for retention strategies such as bonuses. District finance staff reviewed revenue and expense assumptions, enrollment and attendance projections, and a list of proposed reductions and moves intended to close the gap. The presenter described multiple line items the district is investigating for further savings and noted certain cost increases (property insurance premiums, custodial and waste contracts, and instructional adoptions) that the district cannot avoid.

Board action and next steps: Trustees did not adopt the compensation plan at the May 15 meeting. Instead, trustees directed administration to return with updated compensation scenarios once the Legislature—s action is clearer; staff said they plan to bring a revised proposal at the May 29 meeting or the June budget workshop. In the meantime the board approved other routine items by consent and took several actions in closed session (see actions array). The administration warned that any pay increases would need to be adopted before the district finalizes the fiscal-year 2025-26 budget to avoid retroactive pay obligations.

Context: Trustees and staff described the legislature—s recent changes to House Bill 2 and related proposals (discussed in public testimony and staff remarks) as altering the district—s expected basic allotment and other formula components; staff said some senate proposals would reallocate previously expected local yield increases rather than provide new, unrestricted funding.

Ending: Administrators said the district is continuing scenario work and outreach to legislators and will return to the board with a compensation recommendation once state funding outcomes are known.