Midway ISD hears House Bill 2 impacts; board adopts FY26 budget after finance and compensation briefing

Midway ISD financial staff updated the board June 17 on the district’s budget outlook for fiscal year 2026, explaining key provisions of the recently enacted House Bill 2 and how those changes affect Midway’s revenue and compensation planning. After discussion the board adopted the proposed budgets and related compensation framework by voice vote.

Lede facts: The district’s initial FY26 proposed general‑fund budget shows a possible deficit of about $3.4 million in a conservative (worst‑case) scenario. Finance presenters said House Bill 2 creates new allotments—teacher retention, support‑staff retention and an allotment for basic costs—that increase state funding but require interpretation and local implementation choices.

Why it matters: The new funding formulas change how some state dollars are delivered (more funding through dedicated allotments rather than the basic allotment or local revenue). For Midway, staff said these changes increase uncertainty for near‑term budgets even as they provide dedicated funding for pay increases. Board adoption of the FY26 budgets authorizes the district to move forward with staffing and compensation plans tied to those allotments.

Key provisions and local impacts explained to the board - House Bill 2 and allotments: Presenters summarized the bill’s structure and said about $8.5 billion in additional school funding statewide was directed to salary‑related allotments. For…