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Midway ISD proposes up to $2 million for staff pay increases; recommends 2% across-the-board midpoint raise
Summary
District leaders proposed a compensation plan that would give a 2% midpoint increase for all employees, capped so the district does not exceed $2 million in new compensation costs; administrators also highlighted teacher incentive allotment results and ongoing teacher-pay gaps driven by state allotment rules.
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Midway ISD administrators presented a compensation update and recommended the board approve a compensation plan that would provide a 2% general pay increase (GPI) applied to pay midpoints for all employee groups, with targeted adjustments where market misalignment exists and an overall budget cap of $2 million as a worst-case scenario.
"The one that we are strongly considering and recommending is a 2% increase on the midpoint for all employees," Dr. Ashley Kudson told trustees, adding the district proposed a cap of no more than $2 million to cover midyear costs, TRS and benefit contribution changes.
Kudson said the district and its consultant compared Midway to nearby peer districts and found the largest gaps for teachers with 5 to 20 years of experience; the gap is driven in part by differences in the Teacher Retention Allotment (TRA) available to districts of various sizes. Administrators said the district had narrowed earlier gaps through prior adjustments but state allotment rules continue to create differences in market competitiveness.
Administrators also highlighted Teacher Incentive Allotment (TIA) payouts: roughly 65% of eligible teachers in Midway qualified for TIA this year, and district staff said payout ranges in their submission varied by designation level (district remarks referenced ranges such as roughly $3,000—$13,000 depending on designation level, with higher levels paid more). The district described TIA as a performance-driven supplement that has become a meaningful recruitment and retention tool.
Other proposed elements included no increase to employee health insurance contributions this cycle (after a large increase last year) and a reduction in the non-insurance flex spending card from $300 to $150 as a modest cost-saving measure. Administrators said they plan to present a 2026-27 budget next month that incorporates these compensation recommendations while holding worst-case deficits to about $2.5 million.
Trustees discussed the plan's trade-offs, the role of state funding formula differences, and the practical impact of TIA as a recruitment argument.

