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Prosper ISD board approves 2025–26 compensation plan as HB2 reshapes state funding
Summary
The Prosper ISD Board of Trustees unanimously approved a 2025–26 employee compensation plan after trustees reviewed changes from the recently passed House Bill 2; the district will use local funds to fill gaps for non‑classroom staff.
Trustee Bill Beavers read the board's statement and trustees voted unanimously June 13 to approve the 2025–26 employee compensation plan presented by administration.
The plan incorporates parts of the new state law, commonly referred to in the meeting as HB 2, that provides “historic funding increases for our classroom teachers,” while also using district funds to address employees who the bill does not fully cover, Beavers said. The board approved the plan on a voice vote; the motion to approve was made by Mister Dyle and seconded by Mister Cavender, with all seven trustees voting in favor.
Why it matters: HB 2 changes how state funds flow to schools and ties specific allotments to categories of staff and costs. Prosper ISD faces a preliminary budget gap for 2025–26 and trustees said they want to balance honoring teachers targeted by the state law while preserving compensation for other district employees.
Administration told the board the state allotments under HB 2 that are likely to affect the district include a $45 per average daily attendance (ADA) support‑staff allotment, a $55 increase to the basic allotment, and a $106 per enrolled student basic‑cost allotment tied to utilities, transportation, insurance and similar expenses. Presenters also noted a $250 million special‑education formula change scheduled for fiscal 2027 and a larger school safety allotment that administrators estimated for Prosper at roughly $1.5 million, while the district currently spends more than $3.5 million on safety.
Under the approved compensation plan, teachers with three to four years of experience will receive the $2,500 increase set in the state law and teachers with five or more years will receive the $5,000 increase the state provided. The board and administration also proposed that first‑ and second‑year teachers receive $2,500 each, an increase the district will fund locally since that portion is not provided by the state. The board approved a 4% increase for other staff members not covered by the teacher allotment; administration presented that as the recommended local adjustment for support staff, custodial and maintenance employees, nurses and counselors.
Administration emphasized the state formula remains complex and some components — such as precise tax compression rates and final PEIMS guidance for coding staff who generate state funds — were still pending at the time of the meeting. Administrators said the district will monitor certified property values and final state rules this summer and present a budget amendment in July to reflect updated numbers.
The board statement that preceded the vote acknowledged the district’s financial constraints: “While we celebrate that HB 2 provided or provides historic funding increases for our classroom teachers, we must acknowledge that the legislation presents significant challenges for our district’s comprehensive approach to fair compensation,” Beavers said. The board asked administration to post the statement to the district website.
What’s next: Administration will return in July with functional‑level budget changes and updated revenue estimates after certified property values are released; the board plans to adopt the budget and tax rate in late August.
