Pasadena ISD CFO outlines six pay scenarios under House Bill 2; board to adopt then amend budget

PASADENA, Texas — Pasadena ISD Chief Financial Officer Dr. Tamika Alford Stevens told the school board Tuesday that House Bill 2 will require the district to deliver targeted pay increases and presented six raise options to narrow a projected deficit.

Dr. Alford Stevens said the new law requires $2,500 for teachers with three to four years of classroom experience and $5,000 for teachers with five or more years, and that the district expects to receive an estimated $13,400,000 for that teacher retention allotment. She told trustees the bill creates a support-staff allotment of $45 per average daily attendance (ADA) and estimated Pasadena ISD would receive about $1,600,000 for that purpose. "From House Bill 2, we're projected to receive about $25,000,000 in additional state funding for this upcoming school year," she said, "and from that $25,000,000 we are required to provide $15,000,000 in compensation increases."

Why it matters: The state-directed increases will be recurring obligations and the district is already projecting a $29,600,000 deficit under current law. Dr. Alford Stevens said the allotments do not fully cover other pay groups and that implementation depends on forthcoming Texas Education Agency (TEA) rules and PEIMS reporting guidance.

Details of the options: The CFO outlined six options that mix flat amounts for classroom teachers and percentage increases for other staff. Key figures presented by staff included: - Teacher retention allotment estimate: $13,400,000 - Support-staff allotment estimate (45/ADA): $1,600,000 - Total additional state funding estimate: ~$25,000,000 - Required compensation increases to be sustained: ~$15,000,000 - Projected current-law deficit: $29,600,000 - Example option costs: Option 1 — $15,800,000; Option 2 — $17,700,000; Option 3 — $19,600,000; Option 4 — $16,700,000; Option 6 — $20,200,000

Under option 1, Dr. Alford Stevens said classroom teachers with 0–2 years would receive a $1,500 flat increase (bringing the proposed starting teacher pay to $65,205 in that scenario), teachers with 3–4 years $2,500 and teachers with 5+ years $5,000. Other staff in option 1 would receive a 1% increase; other options raise the "all other staff" group by 2% or 3% of group midpoints. She explained "midpoint" as the average salary for a pay group and gave planning examples: a 2% midpoint increase would be about $300 for a custodian, $570 for a bus driver and $1,400 for a nurse, depending on the pay group.

Board discussion and next steps: Trustees asked clarifying questions about the duration of state funding (two years of the biennium), special education funding changes that will take effect in 2026–27, and whether the district will adopt raises as one-time stipends (other districts mentioned, such as Fort Bend, had used stipends). Dr. Alford Stevens recommended the board adopt the budget next week based on current law (showing the $29.6 million deficit) and approve an amendment in July to reflect the HB2 required compensation increases once TEA rulemaking and coding guidance are final. "For next week to get us through the budget adoption process ... I'd like to propose to continue with our regularly scheduled budget adoption under current law and then amend the budget in July," she said.

No final board vote on a raise option occurred at the workshop; trustees provided feedback and Dr. Alford Stevens asked board members to indicate preferred options so staff can build the formal budget to return for action at the June 24 meeting and subsequent amendment in July.

Context: Dr. Alford Stevens said TEA sent guidance this week on teacher definitions and PEIMS reporting but that additional rulemaking, training and system changes are still required. She also compared neighboring districts' responses — some districts already set raises between 1% and 4% or used stipends — and said most districts expect some degree of a deficit this fiscal year.

The discussion took place during Pasadena ISD's board meeting on June 17, 2025, where the CFO presented the budget workshop materials and responded to questions from trustees.