La Porte ISD trustees direct staff to build FY26 budget assuming full disaster rate; discussion continues on teacher pay and stipends

La Porte ISD trustees on May 20 told staff to build the district’s fiscal 2026 budget assuming the full 12-cent disaster portion of the maintenance and operations (M&O) tax rate, a direction staff said would reduce the district’s projected deficit compared with adopting a lower rate.

At a budget workshop presented to the board, district staff outlined FY25 and FY26 estimates, tax-rate options, and multiple salary/stipend scenarios and asked for direction on two items the board must later adopt: the M&O tax rate to use in budget development and the raise percentage to include for salaries and stipends.

Staff presented multiple numerical scenarios and background: - The estimated M&O (maintenance and operations) tax-rate starting point was 0.6323 for FY26 under current law; including the full 12‑cent disaster/voter-approval portion would raise the M&O to about 0.8023, which staff said would net the district materially more revenue after recapture calculations. - Staff estimated the district’s FY25 year-end general fund balance at about $54 million and presented a scenario in which adopting the disaster rate would reduce a projected operating deficit (versus adopting no disaster rate) by roughly $8 million, leaving a smaller projected deficit for FY26. - Using a homeowner example with a $300,000 appraisal, staff showed the total tax-bill impact would be approximately $100 more per year in the presented scenario (staff noted the example includes homestead protections and state adjustments discussed in session).

On compensation, staff outlined several options and the potential state allotment in pending House Bill 2: - Staff recommended increasing the district’s starting teacher salary to $63,000 with a $400 step for each year of experience to preserve pay progression. - Staff presented cost estimates for across-the-board raises: a 3% raise (estimated cost $1.65 million), 4% ($2.2 million) and 5% ($2.75 million), and an alternative breakout (example: 5% for teachers, 4% for classroom paraprofessionals, 3% for others) with a combined cost estimate. - Staff described House Bill 2 proposals under consideration at the Legislature: an allotment that would provide an additional $2,500 this year and next for teachers with 3–4 years’ experience and $5,000 for teachers with 5+ years; staff estimated that allotment would amount to about $2 million for the district for the two-year period and said the state money would be salaried (not one-time) if passed.

During the discussion trustees stressed sustainability and equity across job classes (teachers, paraprofessionals, counselors, nurses). Several board members said they favored using the full disaster rate to build the budget; staff said the board cannot formally adopt a tax rate until September or October but needed a direction now to prepare the June budget document.

After a closed-session break, staff presented two compensation proposals for the board’s consideration (the transcript records these as staff proposals; no formal board adoption of a compensation package was recorded in the public minutes excerpt): - If House Bill 2 passes: starting teacher salary $63,000; 4% raise for all employees; 5% increase to stipulated supplemental pay/stipends. - If House Bill 2 fails: starting teacher salary $63,000; 3% raise for all employees; 3% stipend increase.

Staff and trustees agreed on next steps: staff will build the June 10 draft budget and present a public hearing for the FY26 budget on that date; final adoption of the tax rate is scheduled later (sept/oct) after certified values are received. Staff emphasized that any state action (e.g., final legislation or TEA guidance) could require amendments to the board’s adopted compensation plan.

Direct quotes from the meeting included the presenter’s explanation of the state allotment approach: “We’re gonna make it whole. All of those teachers, we’re gonna physically touch and give them their $5,000. And it's gonna be a salaried amount,” attributed to Miss McDowell, district staff and budget presenter.

The workshop left the board with clear staff direction on tax-rate assumptions for budget building and with staff proposals for compensation tied to possible state funding; trustees did not record a final compensation vote during the public session and will consider final adoption at upcoming public meetings.