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District projects $10.5 million budget gap as legislature’s proposals shift teacher pay obligations
Summary
Staff told trustees the district faces a projected $10.5 million deficit for FY25–26 under current-law assumptions; preliminary legislative proposals that mandate teacher pay increases could raise costs by roughly $8 million in salary + benefits and complicate the district’s choices about raises for other employees.
Ector County ISD staff told trustees on May 20 that under current-law revenue assumptions the district faces a projected $10.5 million deficit for FY25–26 and that proposed legislative changes to teacher pay will materially affect budgeting choices.
Staff presented a financial snapshot comparing audited 2023–24 numbers, current-year projections and the proposed FY25–26 outlook. They said the district currently projects 117 days of fund balance — about 27 days above the locally recommended 90-day minimum — but cautioned that the $10.5 million deficit would reduce flexibility. Staff attributed about half of that deficit to technology purchases (E‑Rate-related infrastructure) that the district fronts and is reimbursed for later.
Staff also summarized preliminary legislative language that would increase required teacher pay. Presenters estimated an average 5.5% salary increase for teachers that would cost the district about $8 million (salary plus benefits), and noted that the state-provided revenue tied to the changes would not fully cover the district’s required pension and benefit costs. "If we have to give those raises to the teachers, it's 6,800,000. That's the revenue we would get is 6.8, not 8, which is what it's gonna cost us," staff told trustees.
Trustees discussed options including a district-level 2% increase for non‑teacher employees as a conservative approach, the timing of budget adoption and additional workshops to reconcile legislative outcomes. Staff said a June 10 workshop and a June 24 special meeting are scheduled to finalize the budget and publish the notice of tax rate as required by state timelines.
Why it matters: mandated or expected pay increases passed down by the Legislature can force school districts to choose between using fund balance, cutting programs, or proposing tax adjustments; trustees emphasized the need to continue monitoring final legislative language before making irrevocable budget decisions.
Next steps: staff will continue to refine the budget as legislative action becomes final, prepare materials for the June workshop and present adoption options at the June meetings.
