RISD projects multi‑million shortfall and models pay options; 3% raise could cost about $10.8M

Financial leaders briefed trustees on the district’s general fund outlook and then presented multiple compensation models to inform board decisions for the 2026–27 budget.

Miss Davenport and David Pate reviewed fund balance basics and explained the district’s projections, noting a June 30 fund‑balance focus and the “permanent local school fund” set aside in prior years. Pate said the permanent local school fund currently holds $27,200,000 and that it could be used to smooth a one‑time shortfall if the board chose to do so. Trustee questions followed about revenue uncertainties tied to tax collection timing and state aid calculations.

On compensation, Dr. Goodson presented several modeling options: a 1% general‑fund only raise was estimated at about $3.6M; a 3% flat raise across general fund employees would cost about $10.8M. Alternative models included dollar‑step increases for classroom teachers (for example $1,000 for teachers with 1–10 years and $2,000 for 11+ years, with additional percentage adjustments for other employee groups), and stratified percentage bands tied to years of service. Staff noted that any chosen raise option interacts with required adjustments to entry pay to avoid renewed salary compression and asked trustees whether they preferred a dollar‑step approach, stratified percentages, or a different menu to be modeled more precisely.

Financial staff also outlined expected non‑discretionary cost increases (special education needs, insurance, utilities and UIL fees) and said the board will see proposed expenditure reductions in April aimed at identifying $20M–$24M in savings to stabilize the multi‑year forecast. Trustees asked for concrete salary‑schedule models showing how each option would affect compression and starting pay; staff agreed to return with those models and the expected budget impact.