Tomball ISD presents balanced 2025–26 budget after state funding changes; board to consider rate in September

TOMBALL ISD — Tomball ISD officials on June 17 presented a balanced fiscal 2025–26 general fund budget they said reflects changes from the recent legislative session and a package of state allotments that together raise the district’s state revenue by about $11.8 million.

Chief Financial Officer Zach Bowles told the board the state’s House Bill 2 and related legislation shift some funding to districts and create targeted “retention” allotments for teachers and support staff that the district must pass through to employees. “We are presenting a balanced budget,” Bowles said during the workshop hearing.

Bowles told the board the largest single pieces of new funding for Tomball are the teacher retention allotment (about $6.0–$6.3 million estimated), a support‑staff retention allotment (about $880,000), a new enrollment‑based “basic cost” allotment (about $2.4 million), and an increase in the school safety allotment (about $630,000). He said the state’s changes also include expanded homestead exemptions (Senate Bill 4 and related bills) that will affect local tax bases and require the district to adopt a tax rate in September under the assumption the voter‑approved change will pass in November.

Why it matters: district staff said most of the $11.8 million is already earmarked by state rules or by the district’s implementation plan. The teacher allotment must be passed to qualifying classroom teachers (defined in the law as those spending four or more hours in instructional settings), and the support‑staff allotment must be spent entirely on salary increases for eligible nonadministrative staff.

Key figures and how the district plans to use the money

- State funding change: House Bill 2 allocated roughly $8.5 billion statewide; Tomball ISD’s modeled increase is about $11,800,000. Bowles described that as a mix of newly allocated dollars and reallocated state funding.

- Teacher retention allotment: the district’s model uses the state definition tied to years of experience. Tomball’s implementation shows $2,500 for teachers with 3–4 years’ experience and $5,000 for teachers with 5+ years; the district estimated receiving roughly $6.0–$6.3 million for that allotment and plans to pass those amounts to eligible teachers. Bowles said the allotment is intended to sustain initial raises and that TRS (Teacher Retirement System) will treat the allotment as TRS‑eligible salary.

- Support‑staff allotment: the law provides an ADA‑based allotment the district estimates at about $880,000. Bowles said the state requires every dollar be used to increase pay for eligible nonadministrative positions (counselors, librarians, nurses, custodial staff, bus drivers and similar roles); Tomball modeled a 2% general increase for support staff to meet the mandated spending, with the district covering an estimated shortfall (about $105,000) needed to achieve that percentage.

- Basic cost allotment: a newly created allotment of $106 per enrolled student (enrollment‑based, not ADA) is estimated to provide approximately $2.4 million to cover items such as property insurance, utilities, transportation and the district’s employer share of benefits linked to the new raises. Bowles said about $900,000 of that allotment is expected to offset the district’s TRS contribution increases related to mandated raises.

- Other amounts: safety allotment increase estimated at $630,000; teacher incentive allotment (TIA) allocation for Tomball reported earlier by the state at about $3.8 million for eligible teachers (separate from the retention allotment and other local raises).

Budget totals and reserves

Bowles presented a proposed general fund budget with revenues and expenditures each at $238,300,000. He said food services and debt service budgets are balanced as well (food service about $12.8 million; debt service about $77.5 million). The presentation noted the district currently holds reserves above the board policy target: staff reported the district is at roughly 34% in reserve and the board policy target is 25% of the next year’s budget.

Taxes and timing

Bowles outlined how property tax relief measures passed at the state level (including higher homestead exemptions and business personal property exemptions) will reduce the local tax base and shift more of the funding burden to the state through tax‑rate compression hold‑harmless provisions. He said the district will adopt a tax rate later in September after certified appraisal values and the results of the November voter approval of homestead changes are known; if voters reject changes in November, the district would need to reissue tax statements.

District pay changes and implementation

The workshop reviewed proposed pay changes included in the 2025–26 salary and benefits book: Bowles said the district proposes a 2% general pay increase for support staff (applied at the midpoint of the district pay schedules) and a 1% general pay increase for administrative staff, while the teacher retention allotment will be shown separately on hiring scales so staff can see the pass‑through amounts. The district also plans a $500 beginning teacher stipend for teachers with 0–2 years of experience.

Superintendent Martha Salazar Zamora told the board the administration will send communications to staff — Bowles said a communication would go out to employees the next day explaining implementation details and that Human Talent (HR) will support individual questions.

Board questions and concerns

Board members asked about the sufficiency of the safety allotment versus actual safety costs (one member noted the district’s contract with Harris County Precinct 4 for SRO services is roughly $2.7–2.8 million, larger than the safety allotment increase). Others pressed for clear communications to employees about how allotments, TRS treatment and total compensation will appear on individual salary confirmations. Several trustees emphasized the need to avoid continued use of reserves and to protect the board’s 25% reserve policy.

What remains procedural: The June workshop was a public hearing and review; Bowles and staff repeatedly noted that final actions on the salary and budget items would occur at the regular meeting later the same evening. The workshop did include a formal adjournment motion that the trustees approved unanimously.