Magnolia ISD leaders propose targeted raises, health‑benefit increases and one‑time retention payout ahead of board vote

Dr. Morris opened Magnolia Independent School District’s budget workshop by telling the board the district is “in a good position” after adopting a balanced 2025–26 budget and that administrators are recommending a conservative plan for 2026–27.

Administration said roughly $4.5 million in recurring funds is available for compensation and benefits, separate from a one‑time property‑audit payment the district expects of about $3.44 million. “We adopted a balanced budget,” Dr. Morris said, noting earlier raises passed this year and district efforts to close veteran teacher pay gaps.

The senior leadership team recommended a compensation package to be considered by the board next Tuesday that would include a minimum 3% raise for all employees and stepped increases for veteran teachers: 4% for employees with 11–20 years of experience, up to 5% for 21–25 years and up to 6% for 26 years and above. Administration said the stepped increases are intended to narrow long‑standing pay disparities for more experienced teachers.

To address rising insurance costs from TRS ActiveCare, administrators proposed tiered increases to the district’s employer contribution: an additional $50/month for employee‑only coverage, $75/month for employee‑plus‑child, and $100/month for employee‑plus‑spouse and family plans. The package would be the first employer contribution increase since 2021; administration said about 1,300 of roughly 2,200 employees (about 60%) participate in the plan offered through the state.

The presentation also proposed a $500 one‑time retention payment to all employees employed on the requisite September payroll date, at an estimated cost of about $1.2 million. Administrators said that payment would be funded from the expected $3.44 million one‑time receipt and that the remaining one‑time funds would remain in fund balance.

Officials told the board custodial pay remains a recruitment and retention pressure point: the district has about 25 open custodial positions of roughly 125, and custodial pay was described as more than $3/hour behind local market rates. Administration recommended targeted increases for hourly staff partly funded by reduced contract‑service spending.

Board members asked clarifying questions about whether the one‑time $3.44 million was included in recurring calculations (administration: it was not), what the cost impact would be if enrollment outpaced conservative projections, and whether the district could phase or adjust specific elements after implementation. Administration said they used a conservative 450‑student enrollment increase for budget planning even though the demographer projects 587.

The administration framed the package as a balanced response to a tight labor market and rising benefit costs and asked the board for direction before a likely vote next week.

What’s next: administration will present ordinance/resolution language to the board at its next meeting for possible approval and will provide detailed cost breakdowns by component on request.