Magnolia ISD board approves 2025–26 compensation plan that raises pay for teachers and staff

The Magnolia Independent School District board approved the district's 2025—26 employee compensation plan at a regular meeting after a presentation by district staff. The motion to approve the plan was made by Board member Stacy and seconded by Board member David; the board adopted the plan by voice vote.

The plan ties state House Bill 2 (HB2) teacher pass-through amounts to local raises and adds district-funded increases for some employees. Staff member Morris, who presented the proposal, said the district is "ready to move forward with the compensation plan," and outlined a mix of state pass-through funds, locally funded percentages and a one-time retention payment.

Morris told trustees HB2 provides pass-through amounts defined by teacher experience levels: $2,500 for teachers with three to four years of experience and $5,000 for teachers with five or more years, with different (larger) pass-throughs for districts with fewer than 5,000 students. For Magnolia ISD, the proposal includes a guaranteed minimum 4% raise for all employees and other targeted increases: a 4% raise for teachers with 0—2 years of experience, the HB2 pass-through for teachers with 3—4 and 5+ years, and additional percentage increases for more veteran teachers. Specifically, the plan proposes adding to the pass-through amounts: 2% for teachers with 11—20 years of experience, 4% for 21—25 years and 6% for 26+ years. Morris said the extra amount for the smallest veteran cohort would cost about $63,000.

The district also proposed 4% raises for other professionals who do not qualify for the HB2 pass-through (examples Morris listed include librarians, counselors and instructional coaches) and a 5% raise for hourly employees. The compensation package includes a one-time $500 retention payment scheduled for Sept. 15, to be paid from fund balance.

Morris and trustees discussed funding sources for the package. Morris said the plan will be funded by a combination of state funds from HB2, conservative enrollment growth assumptions (the presentation used a demographer's number near 600 but the district said it is modeling 400), some anticipated increases in the basic allotment, and local savings from operational efficiencies such as transportation changes and secondary scheduling. In response to a question from Board member Jay, Morris said the district believes the plan can be implemented without running a deficit and that conservative revenue assumptions were used.

Board member Eric asked whether the larger raises for very veteran teachers could delay retirements and increase retirement-related costs; Morris acknowledged that possibility but said the district had intentionally targeted veteran pay to help retain mid-career teachers and to close local pay gaps with neighboring districts. Morris cited the district's prior decisions to limit spending and noted that last year most staff received a 1% raise while the district prioritized additional dollars for veteran teachers.

The presenters compared Magnolia ISD teacher pay with other Texas districts using TASB-submitted data and named Montgomery, Conroe and Tomball as comparators; Morris said the district has been working in recent years to close pay gaps, especially for teachers with more than 15 years of experience. He also noted other districts are starting from different fiscal positions and some remain in deficit budgets.

The board approved the compensation plan by voice vote (motion by Stacy; second by David). The meeting later adopted a motion to adjourn (moved by Board member Tasha); the meeting adjourned at 8:20 a.m.

Votes at a glance: Motion to approve 2025—26 employee compensation plan as presented '1 motion by Stacy; second by David; outcome: passed by voice vote.

Funding and next steps: The district will implement the raises and the one-time retention payment as outlined; Morris and staff indicated the plan assumes conservative enrollment growth and uses a mix of HB2 funds, enrollment-based revenue increases, and savings from prior operational changes. No further formal actions or detailed budget figures were adopted at the meeting.