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Trustees discuss using fund balance to support employee pay raises, but agree to wait for state action before finalizing
Summary
Board members discussed whether to use reserves to fund a retention/raise package for staff while watching pending state school‑finance action; trustees expressed strong support for employee pay increases but urged caution because state legislation and funding details remain uncertain.
Board members discussed options for staff compensation in the 2025–26 budget, including a one‑time retention stipend and a permanent pay raise funded in part by drawing down fund balance. Finance staff presented current estimates showing an improved out‑turn for the current year and scenarios for the upcoming fiscal year given pending legislative changes.
Finance staff said the district adopted the current-year budget in June with a planned $12 million deficit but now estimates finishing the year about $8.4 million to the good, which would raise the district’s days‑of‑funds measure to approximately 138 days at year end (well above the recommended minimum). Projections that incorporate a 5 percent general pay increase and a one‑time retention stipend show the district moving toward a $17 million shortfall if no additional revenue is realized from the legislature.
Trustees expressed strong support for improving compensation. “If we can pull it off, we make it work,” one trustee said, and another added that the board’s top priority should be taking care of employees because they are “our backbone.” Several trustees asked to delay final budget adoption slightly so the district can incorporate any action from the Texas Legislature and TEA before committing to permanent pay increases. Staff said they anticipate more clarity by April and proposed delaying final adoption and any permanent budget changes until a special meeting after the regular June meeting to allow time for legislative action and required state guidance.
No budget vote was taken. Staff said they will continue preparing departmental requests and will return a recommended budget for adoption after the district knows how state decisions affect local revenue and required allocations.
