The board of trustees received a budget update and compensation plan recommendations for a 1-3% staff raise during its May 1 meeting.
Breaking it down
Last month, Chief Financial Officer Jennifer Land projected a FY 2025-26 budget shortfall of $13 million. That number has since increased slightly to $13.3 million due to "normal changes in the budget," she said.
Revenues are projected at $296.3 million while expenditures are projected at $310 million. Both figures are up slightly from last month, and are $5.9 million and $12.3 million more than FY 2024-25's revenues and expenditures, respectively.
The projected revenue increases are primarily due to property value increases, Land said. Last month's projections assumed a -7% property value growth, but based on new estimates received in April, the district is showing a preliminary 2.2% growth.
The projected expenditure increases include $4.9 million built in for raises, a $1 million increase in recapture payments, a $2 million increase to address district growth and a $5 million increase for fluctuating fixed costs such as utilities and insurance.
"I want to point out that these expenditure increases are not just haphazard because we are adding things [or] because we are not being careful with the budget," Land said.
Also on the agenda
The board of trustees are also required to adopt a compensation plan each year.
In 2024-25, PfISD took the lead in 0-year and 5-year salaries compared to Austin, Georgetown, Leander and Round Rock ISDs, said Texas Association of School Boards consultant Nicolle Gee-Guzman.
PfISD was even with RRISD at the 10-year salary mark and was only slightly below the district at the 15-year and 20-year mark.
The board approved a 2% general pay increase last year and also raised its minimum wage to $17 and hour.
TASB provided three recommendations to the board which include adopting a general pay increase of 1%, 2% or 3% to maintain and improve PfISD's position in the market.
According to Land:
- A 1% raise would cost $3.6 million, resulting in an $11.9 million shortfall
- A 2% raise would cost $5.3 million, resulting in a $13.7 million shortfall
- A 3% raise would cost $7.2 million, resulting in a $15.6 million shortfall
Stay tuned
PfISD is changing its fiscal year from Sept. 1-Aug. 31 to July 1-June 30. As such, the 2025-26 budget must be adopted by June 30, Land said.
The 89th Texas Legislature will also conclude June 2, and further budget updates will be provided based on any new bills passed.
