Overview
House Bill 2, which was signed into law by Gov. Greg Abbott in June, mandated pay raises for educators and support staff to bolster teacher and employee retention. It also created new funding allotments for fixed costs and other expenses.
Chief Financial Officer Jennifer Land said at a July board meeting that the district expects to receive an estimated $16.8 million in state funding related to HB 2. Per the state mandate, PfISD board trustees approved a $2,500 pay raise for qualified classroom teachers with three to four years of experience; and a $5,000 raise for teachers with five years of experience.
While not required by HB 2, the board also approved raising the starting salary for teachers by $600 to $58,300, and signed off on $800 pay increases for teachers with one to two years of experience. A 1% increase of the pay range midpoint for all other employees, including teacher related positions that didn’t qualify for the teacher retention allotment funding, was also passed.
What it means
In June, the board of trustees approved the district’s FY 2025-26 budget with a $10.3 million shortfall.
However, Land said the Texas Legislature allocated money for districts in the form of “allotment of basic cost,” which can be used to fund or help support the benefits associated with the teacher retention funding. It can be used to support increased costs due to inflation, such as property insurance and fuel costs, she said.
A $55 increase to the district’s basic allotment and additional school safety dollars, among other funding sources, helped PfISD reduce its $10 million deficit.
“We are looking at a revised budget deficit of $4.3 million,” Land said. “That is a $6 million decrease in the deficit that we presented [in June]. I know this is not where we want to be in terms of a balanced budget, but it is a significant improvement from where we were last month.”
