San Angelo ISD reviews compensation plan after state funding boost; board to vote next week

San Angelo ISD officials on Monday presented a proposed 2025–26 compensation plan that applies $6.3 million in new state funding largely to teacher pay and proposes district options for health-insurance contributions and pay-grade adjustments. The board’s personnel discussion, led by Dr. Brandon, will return for formal consideration at the district’s regular meeting next week.

The proposal implements the state’s teacher-retention allotment required by House Bill 2 and outlines district choices for distributing the remaining funds. The plan allocates $4 million specifically to classroom-teacher increases and reserves the rest for market adjustments recommended by a TASB (Texas Association of School Boards) pay study and possible general pay increases for other employees.

District officials said the state allotment must be spent on classroom teachers. Under the legislative guidance presented, teachers with five or more years’ experience would receive $5,000 and teachers with three to four years would receive $2,500. Dr. Brandon told the board the district counts 724 teachers in the five-or-more-years category and 97 in the three-to-four-years category. Dr. Brandon estimated the total compensation package under consideration at about $5.6 million when benefits are included.

The TASB market study produced a set of recommended pay-grade changes for noninstructional staff and trades; district staff proposed adopting those recommendations (about $367,000 in base adjustments plus benefits, officials said). The district also presented three options for how to treat employees’ health insurance in light of a TRS ActiveCare premium increase of $41 per month: keep the current district contribution of $479 per month (employee pays the $41 increase); split the increase (district cap $500, employee $20); or fully fund the new premium ($520) at a projected district cost of roughly $713,000 per year. Dr. Brandon said a half-district/half-employee split would cut the district’s additional burden roughly in half.

Board members asked whether staggered or targeted increases could reduce churn among manual-trades staff (electricians, plumbers, HVAC technicians) and lower-paid campus employees. Several trustees and Dr. Brandon noted TASB’s market analysis had moved many trades job rows up one pay grade and that the recommendations were designed to reduce losses of skilled workers to industry. Board members also pressed staff for the list of 30 positions slated for removal or consolidation; Dr. Brandon said Human Resources would provide that list to trustees.

No formal action was taken Monday. Dr. Brandon told the board the district must adopt its compensation plan next Monday, because open enrollment for employee insurance begins Tuesday. Trustees asked staff for additional scenarios showing the budget effect of a 2% versus a 3% districtwide pay increase, and for cost estimates that target moves for manual trades without harming other employee groups.

The board packet and presentation tied the compensation work to the district’s revenue assumptions: a fall 2025 enrollment projection of 12,800 students (district staff budgeted on 11,812 average daily attendance), the effect of increases in the state homestead exemption and the district’s recently approved 2025 bond. Officials said payroll consumes roughly 82–84% of the general fund budget and emphasized the need to balance pay decisions with other operating needs.

Trustees and staff agreed to continued review during the coming week; the board will consider formal adoption at its regular meeting next Monday. If the board approves, open enrollment will proceed on the schedule staff described.