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Corsicana ISD reports preliminary $3.3–3.5 million budget gap; HB2 raises to affect staffing costs
Summary
CISD finance staff told the board on June 16 that House Bill 2 funding will bring additional revenue but projected required teacher raises, support‑staff stipends and rising utilities leave a preliminary deficit of roughly $3.3–$3.5 million for next fiscal year.
Corsicana ISD staff briefed the board on June 16, 2025, on the district's current fiscal year spending and preliminary projections for next year under recent state legislation (HB2), saying the district expects additional revenue but still anticipates a multi‑million‑dollar shortfall.
The district reported that May marked 75% of the fiscal year and total spending to date sits at about 70% of the current budget. Investment returns have been stronger than budgeted; staff said interest earnings are hovering around 4.14% and are forecast to exceed budgeted interest revenue by multiple hundreds of thousands of dollars.
Staff summarized HB2 impacts: state guidance provides teacher raises that the district must implement — $2,500 for teachers with three to four years of service and $5,000 for teachers with five or more years — described by staff as permanent salary increases rather than stipends. Support staff will receive a $45 per adjusted‑ADA allotment, estimated to generate roughly $240,000 for the district. Staff also cited a $106 basic allotment increase (about $566,000 projected for the district) and an increase to the homestead exemption from $100,000 to $140,000.
"If you think our additional revenue is about 2.1 to 2.4 million ... 1.4 of that money is gonna go to teacher raises," a district finance presenter told the board. After the required raises and other known changes, staff projected a preliminary deficit between $3,300,000 and $3,490,000 for the coming year.
The presenter said projections are preliminary and based on templates from Region 12 and a consulting firm; different templates yielded revenue scenarios that varied by roughly $200,000. Staff said they expect to refine the forecast as the Texas Education Agency (TEA) releases further guidance.
Trustees and staff discussed expenditure pressures including rising utilities and maintenance costs, and health‑insurance premium increases for employees. The district reported it currently contributes $399 per employee toward health insurance and that premiums for the coming year would rise by about $63 per staff member.
Staff noted that reimbursement programs such as Medicaid SHARS remain uncertain and district leaders said many Texas districts are preparing deficit budgets because state funding increases do not fully cover inflation and rising costs since 2019.
No formal budget adoption action was taken June 16; staff said additional refinement and board review will occur before final budget adoption.
