McAllen ISD reviews TASB pay-study, weighing 2%, 3% or 4% cost models as legislature shifts school funding

McAllen Independent School District trustees reviewed a TASB pay-study and budget options Tuesday evening, discussing proposed pay-structure realignments, stipend increases and three general-pay models that staff said would cost the district between roughly $4.6 million and $7.8 million in base payroll for 2025–26.

The presentation came during a board workshop on April 15 in the Doctor Ricardo Chapa Boardroom. Ms. Luz Cadena, a senior HR and compensation consultant with the Texas Association of School Boards (TASB), presented market comparisons and recommended adjustments to teacher, professional, administrative, hourly and police pay groups. "The objective of this strategically designed, system and, well managed pay system is to support the district's HR goals to recruit quality employees," Cadena said.

Why it matters: Trustees and staff said district compensation choices will affect recruiting and retention, the budget approved in June, and how McAllen ISD responds to possible additional state funding or new restrictions from the Texas Legislature.

What TASB presented and recommended - Market position and gaps: TASB compared McAllen ISD pay schedules with 11 area districts and third-party surveys. Cadena reported several groups are below market median: teachers modestly below (average about $1,202 below the market median in the review), technology positions about 6% below market, instructional support (instructional aides) about 14% below market, and police pay at about 89% of market median. Cadena said the district's teacher starting salary showed the widest gap.

- Structure and title adjustments: TASB recommended reclassifying some administrative titles (for example, several positions from "manager" to "supervisor") and moving the chief human resources and chief financial officer jobs within pay-plan groupings to better reflect job roles. TASB also recommended separating police and technology into distinct pay schedules rather than keeping them inside the auxiliary/clerical plan.

- Specific pay and stipend proposals: TASB recommended modest increases to several stipends and starting rates used to improve recruiting and to reduce pay compression: - Instructional support (lowest hourly): increase starting rate from $13.00 to $13.75 (about +6%). - Clerical technical starting rate: $13.00 to $13.50 (+4%). - Auxiliary starting rate: $12.00 to $12.50 (+4%). - Teaching-area stipends (examples): subject-area master—s stipend $2,000 —to $2,500; secondary math and science $2,000 to $2,500; bilingual $1,200 to $1,500; ESL/dual language $1,700 to $2,000; special education resource and high-needs stipends also raised. TASB estimated the stipend package cost at $347,300 (included in the cost models). - Substitute pay: recommended increases to bring short- and long-term substitute rates closer to peers (examples in TASB slides included non-degreed to $90/day, short-term certified to $135/day, long-term certified to $145/day). TASB said substitute-costs are harder to estimate and were not fully reflected in the main cost models. - K-9 police stipend: the $1,200 K-9 stipend was recommended to be rolled into base pay (so that overtime and hourly calculations reflect that work).

- General-pay models and costs: TASB presented three general-pay scenarios (applied across groups with targeted adjustments) and associated estimated base-pay costs (base pay only; costs exclude fringe benefits, health costs and overtime): - 2% general increase model: estimated general-pay increase ~$3.4 million plus adjustments ~$1.18 million for a total of roughly $4.6 million (about 2.8% of current payroll). - 3% model: total roughly $6.2 million (about 3.8% of payroll). - 4% model: total roughly $7.8 million (about 4.7% of payroll). TASB also modeled targeted placement, equity and minimum-to-midpoint adjustments (for example, guaranteeing employees are at least 1% above new range minimums and additional increments for incumbents more than 10% below midpoints).

Board and staff discussion, legislative context Ms. Lorena Garcia, Deputy Superintendent for Business and Operations, framed the district's budget goals and the timeline leading to the June budget approval. "Our priority number one is our instructional programs and our students, and also we want to make sure that we retain and fairly compensate our employees," Garcia said. Staff emphasized that the cost estimates are a snapshot based on current payroll and do not include benefits or overtime.

District staff also summarized state-level developments that could affect revenue and district choices. They described the state's "basic allotment" and noted it has not been raised since 2019; staff said House Bill 2 (committee substitute) proposed increases to the basic allotment but would also change how some tier-2 ("golden" and "copper" pennies) state aid is allocated. Staff said Senate Bill 4 (2025) would raise the homestead exemption from $100,000 to $140,000 if enacted, which would change tax notices and local revenue flows but that the state historically includes hold-harmless aid to offset some local losses. Staff cautioned that final revenue estimates depend on Hidalgo County appraisal values and legislative action and that some budget items could be approved contingent on final state numbers.

What the board decided The workshop was informational. Trustees did not adopt a pay model at the meeting. The only formal action recorded was a procedural motion to adjourn: a motion to adjourn was made and seconded and the motion passed 6-0 at 6:54 p.m.

Next steps and outlook Staff said they will refine estimates after receiving preliminary property values from the Hidalgo County Appraisal District and updated payroll/staffing data and will present the next budget workshop with live data. Staff and trustees discussed the option of approving a June budget contingent on final legislative figures or amending the budget later if the legislature changes funding; staff said that is a commonly used approach.

Ending: Trustees thanked staff and the TASB presenter for the analysis and asked for updated figures at the next workshop ahead of the June budget approval timeline.