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SAN ANGELO ISD board weighs raises, bonuses as district projects a $4 million deficit
Summary
District finance staff presented employee compensation options amid enrollment declines and state funding shifts: a 2% pay increase and a $1,000 insurance supplement were modeled, with staff warning decisions depend on tighter deficit projections due in July/August.
At a June 8 pre-agenda meeting, SAN ANGELO ISD budget staff told trustees the district faces an estimated $4 million deficit for the coming school year and outlined trade-offs for employee pay increases.
Dr. Brandon, presenting the budget update, said staff modeled a 2% across-the-board pay increase and a $1,000 insurance supplement as two options. He said the 2% option is a permanent salary increase with ongoing annual cost, while a $1,000 supplement could be a one-time or conditional payment timed for December, and would offset a projected 7% rise in employee health insurance — about $37 per month per employee. “So we've talked about the reduction in staffing trying to mimic the curve with student enrollment,” Dr. Brandon said, noting roughly 89 positions (about 4.8% of payroll) have already been identified for reduction through attrition to align staffing to lower membership.
Board members pressed for more precise deficit and cash-flow numbers before committing to a plan. A trustee asked for a firmer projection of the district's shortfall and when the board would need to decide on compensation; Dr. Brandon said staff will provide tightened monthly and 13-month reports and projected scenarios in July so the board can consider adoption in August. Trustees also discussed the timing of bonus payments (one $1,000 payment in December versus two $500 installments) and whether a supplemental payment could be rescinded if enrollment and revenues decline further.
Enrollment trends and state funding were central to the discussion. Dr. Brandon outlined how state foundation funding tiers tied to membership can fluctuate as enrollment declines, and how property-value changes and homestead exemptions affect local revenue assumptions. He said some capital costs (for example, pending bus deliveries) could shift the timing of expenditures and alter the fiscal picture by up to $1 million depending on delivery timing.
What's next: staff will return with more detailed fiscal scenarios in July and a fuller budget picture in early August when the board will consider formal adoption and any compensation action.
