Mercedes ISD board approves 2025–26 compensation plan using state HB2 funds

The Mercedes Independent School District Board of Trustees unanimously approved a 2025–26 compensation plan that uses state House Bill 2 (HB2) allotments to raise teacher pay and provide increases for nonteaching employees, administrators said.

Superintendent Dr. Noyola told the board at the June meeting that “going into next month, where we will adopt our budget for the 20 five‑twenty 6 school year, we are anticipating bringing forward a balanced budget for our Mercedes ISD.” The administration said the proposed compensation package would not upset that balanced budget.

Human resources consultant Melissa Nieto, who presented the plan, said Mercedes ISD “currently pays well above the state minimum, salary schedule for teachers, which starts at 33,960.” Nieto outlined three compensation models and said the administration is recommending model 3, which combines the HB2 teacher allotment increases with district-funded supplements where needed.

Under the plan administrators presented: teachers with three to four years’ experience would receive an HB2 allotment increase of $4,000, and teachers with five or more years would receive $8,000; nonteaching professionals would receive a flat increase under the recommended model; and hourly/auxiliary staff (cafeteria, maintenance, bus drivers and similar) would receive a 5% increase to the midpoint of their pay grades. Administration estimated total district costs for the recommended model at about $594,755 and said those costs would be covered separately by HB2 allotment monies and would not affect the balanced budget.

Nieto also described the state’s Teacher Incentive Allotment (TIA) process as a separate, competitive designation that can add additional pay tied to campus performance, saying the extra amounts “can be anywhere from 4 figures from $5,000 all the way to $25,000” depending on campus and tier designation.

Board members asked how the HB2 increases would interact with existing pay systems. Dr. Noyola said the district uses two systems: a state‑dictated teacher salary schedule and separate district pay grades for other professionals. She said administration compared teachers and counselors with similar years of experience and concluded that, even after adding the HB2 allotment, teachers would not exceed counselors’ pay in the district’s current structure.

During discussion board members and the superintendent emphasized the need to maintain a sustainable fund balance and to prioritize repairs and other district needs in addition to compensation increases. Several trustees thanked staff for work revising multiple models before settling on the recommended plan.

A motion to approve the compensation plan was made by Mr. Revino and seconded by Mr. Finojosa. The board voted unanimously: Mr. Hernandez—Aye; Mr. Revino—Aye; Mr. Norosa—Aye; Mr. Rodriguez—Aye; Mr. Howell—Aye. The motion carried.

Implementation details presented included revised administrative guidelines, an updated teacher salary schedule showing the HB2 impact at each step, and an estimated savings of $150,400 in stipends tied to campus consolidation. Administration said it will present final budget adoption in the coming month and continue monitoring fund balance and enrollment for impacts on future compensation discussions.

The board heard the compensation item during the superintendent’s report and the human resources action agenda item; the district then moved on to other business and into executive session later in the meeting.