Liberty Hill ISD scores ‘Superior’ on TEA’s FIRST report; board approves $2.1M in Prop A pay commitments

Liberty Hill ISD officials told the board Monday night that the district earned a “Superior” 92 out of 100 on the Texas Education Agency’s Financial Integrity Rating System of Texas (FIRST) for the 2023–24 year and outlined how recently approved Prop A tax revenue will be allocated.

Interim superintendent Travis Motall and district finance staff reviewed the 21 FIRST indicators used by TEA — including audit opinion, cash and investments, fund balance and debt management — and said the district passed most measures. The district lost partial points on indicator 7 (general‑fund cash and investments) and scored 4 of 10 points on indicator 12, which compares future debt obligations with assessed property value; staff said rapid growth and bond sales make that ratio challenging for a fast‑growth district.

“Liberty Hill ISD has scored, achieved an A, a superior rating of score of 92 out of a 100,” a district financial presenter said during the hearing.

The board also received a multi‑stage update on Prop A implementation. Officials said the community‑approved tax ratification election will generate an estimated $10.7 million in additional revenue, but that the money arrives over time as taxpayers are billed and pay (collections generally come between December and February). Administrators reiterated that state recalculations based on PEIMS enrollment snapshots and comptroller property values will determine updated state funding in March 2026.

District staff outlined the administration’s planned allocations for the Prop A revenue: $7.2 million for student programs, $1.3 million to cover safety and security cost shortfalls relative to state funding, and $2.2 million for teacher and staff retention. The finance presentation noted that the state currently funds about $584,000 for safety and security while the district’s actual safety costs are approximately $1.9 million, leaving a gap Prop A money is intended to fill.

Human resources presented two immediate compensation recommendations to be funded from Prop A: a tiered retention stipend ($500 for employees with under one year of service; $1,000 for 1–5 years; $1,500 for more than five years) and a 1% at‑midpoint pay adjustment for all pay groups. HR estimated the stipend program and associated FICA at roughly $1.322 million and the 1% midpoint increase plus benefits at roughly $800,000, for a combined impact of about $2.1 million.

“Both of these are gonna tie directly into our Prop A recruitment and retention,” HR lead Miss Owen said, noting the stipend is not Teacher Retirement System (TRS) eligible and that the midpoint change will be retroactive and begin appearing in paychecks by February.

After discussion, the board voted to approve the retention stipend and the 1% midpoint increase. The board then approved a general fund budget amendment that reduces the district’s recapture projection (to about $1 million) and adds the $2.1 million in compensation costs to the functions tied to the positions to be funded.

The board and presenters emphasized transparency and said they will post detailed Prop A tracking information to a district website section called “Prop A in action.” Motall said TEA formulas and PEIMS snapshots mean final computations will continue to be refined and that the district will update the public when the comptroller and TEA finalize values in early 2026.

What happens next: the district will implement the approved stipend and midpoint adjustments, post the Prop A transparency information online, and continue the PEIMS and comptroller data submissions that will determine exact state funding levels in spring 2026.