The board of trustees voted 5-2 to postpone voting on its 2025-26 compensation plan until August, with trustees Kelly Marwill and Catherine Walker dissenting.
Some context
According to Chief Financial Officer Chris Scot, implementing a 2% raise—which was the initial recommendation for the board—would increase EISD's projected budget shortfall of about $6.5 million to $7.8 million, based on current law.
EISD gave a 2% raise last year, and a 5% raise in the two years prior to that.
Per the board, the substitute motion to postpone voting on the compensation plan will allow the trustees to "make an informed decision" on salaries once the legislature convenes and amend the plan after the start of the fiscal year, which begins July 1.
EISD's health benefit contributions remain at $473 per month for individual employees.
The discussion
Trustee John Troy ultimately voiced concerns with voting on a 2% increase now as it would be funded from EISD's fund balance, or money reserved for certain uses once all expenses are paid.
Per state guidelines, a district's fund balance should be above 25% of the district's operating expenses each year. Based on current law and before a 2% raise, EISD's fund balance would be 19.6% next year.
Marwill and Walker cited concerns with teacher recruitment and retention if no raises are given, and Chief Human Resources Officer Laurie Lee said potential teachers tend to "shop around" for salaries and stipends.
Waiting to approve the plan could impact EISD's competition in the market, she said.
"I also think that our staff, when they go away for the summer, they do kind of like to know the plan," Lee said. "We can always let them know that that would not be decided until August, but I do think that it does affect morale for our staff."
Stay tuned
The 89th Texas Legislature will conclude June 2, and EISD is expected to adopt its 2025-26 budget at the June 24 board meeting.
The board will then adopt the compensation plan at its first meeting in August.
