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Godley ISD outlines budget options after House Bill 2, proposes raises and delays final tax decision
Summary
District staff told the Godley ISD board on budget planning tied to the newly signed school finance bill (House Bill 2), outlined proposed salary increases that depend on TEA guidance, and recommended adopting the final tax rate in August after July certified values arrive.
Spencer, a district finance staff member, briefed the Godley Independent School District Board of Trustees on the effects of House Bill 2 and how the district plans to handle 2025–26 salary increases and the budget.
Spencer said HB2 was signed into law by Governor Abbott on June 4 and that district officials are still awaiting detailed guidance from the Texas Education Agency (TEA) on several implementation points that affect pay and funding. Because of that outstanding guidance, Spencer recommended the board consider adopting some budget items later in the summer rather than at the June meeting.
The presentation focused first on teacher pay changes created by HB2. Spencer said the law creates a teacher retention allotment that, as written, gives classroom teachers with three to four years of service $4,000 and those with five or more years $8,000. The district estimates roughly 240 classroom teachers could be affected; nonadministrative support staff were estimated at about 130–145 employees. "If we plan for 240 teachers to receive the $8,000 raise, but we only get funding for 200 of those, we're on the hook for that other 40 teachers," Spencer said, underscoring the district's caution pending TEA classification rules for who qualifies as a "classroom teacher."
Spencer explained additional allotments in HB2 that may be available for counselors, nurses, librarians and other support staff but said those funds are unlikely to produce the same $4,000/$8,000 amounts specifically earmarked for classroom teachers. He described other HB2 changes that will not take effect until later school years, including revisions to the teacher incentive allotment (TIA) and a planned TEA intensity model for special education funding that will not be implemented until 2026–27.
On district timing and next steps, Spencer asked the board to consider a revised schedule: present salary-scale options in July (or August if TEA guidance arrives later) and adopt a tax rate at the August meeting after certified property values are released. Spencer noted key calendar dates the district is relying on: certified values from county appraisal districts on July 25 and an MCR (maximum compressed rate) from TEA on August 1. "We will consider the tax rate for both Godley ISD and Hill College at the August board meeting," Spencer said.
On projected budgetary impact, Spencer gave a preliminary estimate that the proposed combination of required and recommended raises would cost about $2.1 million under a middle option. He said the district's overall budget is about $39 million and reiterated a conservative posture: certain step raises for 10- and 11-month contracts would be removed in the near-term budget presented next week to leave flexibility for implementing the new allotments.
Spencer also flagged several other HB2- and HB4-related items the board must track: a new early literacy allotment (about $250 for qualifying students), expanded school safety allotments, potential limits on tuition-based pre-K in some circumstances, and a statewide change to homestead exemptions under House Bill 4 that will go to voters in November. On HB4 he warned the district will not receive the county's final certified numbers until July 25 and that the homestead-exemption changes could change local revenue forecasts.
The presentation addressed possible enrollment and program impacts from a statewide voucher-like program created in HB2 that will not take effect until 2026–27. Spencer said the district currently does not know how many students might leave under that program and that state systems and promotion are not yet in place.
Trustee Jeff and others asked clarifying questions during the presentation about eligibility for the teacher allotment, how the district will count instructional minutes for qualifying staff (for example, pull-out specialists without PEIMS O87 codes), and which categories of employees the additional allotments can fund. Spencer said the district will prepare several scenarios for board consideration, including a low, middle and high option for distributing pay increases across teacher steps and support staff.
On taxes and property values, Spencer said the district is publishing its preliminary tax notice based on current estimates in order to meet legal publication deadlines and to avoid having to republish if the eventual adopted rate remains at or below that published amount. He added, "we are charging the maximum allowed," referring to the district's proposed tax rate under current law, and noted that some nearby districts with higher compressed rates may still levy larger overall tax rates despite Godley ISD being at its allowable maximum.
Facility and operational items discussed near the end of the session included a roof-replacement priority for one campus and an upcoming presentation from a roofing contractor. Spencer said a contractor will present options next week for partial replacement of a roof that has caused classroom displacement.
No final budget or tax-rate votes were recorded in the meeting transcript. Spencer said staff will return with detailed salary-scale options and an amended budget for the board to consider in July (or August if more guidance is needed).
