District staff outline legislative effects on educator pay, health care and TRS rates; board adopts proposed 2025–26 budget

Arlington ISD staff told trustees on June 17 that recent state legislation will reshape how the district structures pay scales and manages health benefits, and that the district’s 2025–26 proposed budget reflects preliminary values and significant uncertainty.

Holly Stambaugh (staff member) briefed the board on the changes enacted in House Bill 2 and related measures. She said the law includes a teacher retention allotment that will provide a $2,500 increase to teachers with three to four years’ experience and a $5,000 increase to teachers with five or more years’ experience; the allotment is added to the teacher base and will require the district to design a teacher-specific pay scale for eligible employees. Stambaugh also described a support-staff allotment — roughly $45 per ADA — intended for non-classroom positions and noted that some roles historically placed on the teacher pay scale (for example, librarians, counselors and certain instructional positions) may need to be moved to a different pay scale because they are not eligible for the teacher retention allotment.

Health-care and TRS impacts

Stambaugh told trustees the district’s most‑used TRS ActiveCare plans face rate increases (Region 11 expected approximately a 10% rise). She said an ActiveCare primary employee-only plan would rise by about $49 per month under a 10% increase and that moving toward a more competitive contribution level (top-15 market position) would require roughly a $33 per‑month increase per employee compared with current contributions.

Budget adoption and public hearing

Norberto Rivas, the district’s budget staff, reviewed the proposed 2025–26 budget on preliminary property values, noting the district must adopt a budget before July 1 even though certified values and the final MCR (maximum compressed rate) will not be available until late July and August. Rivas said the district is projecting a modest drop in enrollment for next year (about 2.5%) and is budgeting vacant positions conservatively; he estimated total general-fund revenue increases tied to the legislative changes but also built in enrollment declines and vacancies.

After a district staff public hearing (no speakers registered), the board voted to adopt the proposed budget for the general fund, debt service, capital projects and child nutrition. Trustee Justin Wilbanks moved to adopt the proposed budget; Trustee Kristen Fowler seconded. All seven trustees voted yes and the motion carried unanimously.

Why it matters: the new allotments represent a multi-pronged change in how state dollars flow to districts. While teacher pay allotments are significant, staff warned the new buckets of funding come with strings that limit local flexibility and leave unanswered questions about future funding beyond the current biennium.

Trustee discussion

Trustees asked about the longevity and sustainability of state funding and raised concerns about a potential mismatch between state-designated funding buckets and district priorities. Several trustees said they want to prioritize additional district contributions to employee health care to make plans more affordable for staff, noting TRS ActiveCare premium increases and the number of employees enrolled in those plans.

The board approved the proposed budget as presented; staff will return with final figures after certified property values are posted and as legislative guidance is finalized. Trustees and staff emphasized the need for careful, follow-up decisions as further details about allotments, MCR and TRS rates arrive.