Hutto ISD pioneering administrative incentive program, working to balance FY 2026-27 budget

Some Hutto ISD employees may qualify for a future pilot program to incentivize administrators, as district staff works to plan the district's financial future ahead of the 2026-27 budget year.

In a nutshell

In an April budget update, HISD Chief Financial Officer Caleb Steed said the district expects to meet its financial goal of a balanced budget for the 2026-27 financial year, following district-wide budget reductions and amid higher property values.

While home values have decreased on average, Steed said commercial and multifamily property values have grown, increasing expected revenues by about $5 million. He said his department is also planning compensation increases for certain positions, as well as a first-time program to incentivize campus performance by rewarding administrators.

Because the district originally planned for a flat budget, where expenses and revenues were the same as the year before, the additional funding will turn a projected $3.5 million shortfall into a balanced budget, where revenues and expenses are equal.

The details

Steed said the district reduced projected expenses by around $770,000 by locking in contract pricing for fuel costs, eliminating dual-credit course fees through Temple College and through department-level budget decreases.

With this freed-up funding and increased revenue, he said the district is planning personnel additions, including those for Hutto High School No. 2; pay grade adjustments and alignments; and a new administrator incentive allotment.

How it works

The incentive allotment, similar to the state-funded Teacher Incentive Allotment, would reward campus principals, assistant principals and counselors based on campus performance and successful execution of district initiatives.

Steed said metrics could include a campus's letter grade in the state accountability rating system, progress in special programs such as special education or emergent bilingual programs, as well as campus improvement plans.

The program would be self-funded, he said, with the intention to seek state funding should a similar program be created at that level.

What they're saying

"If we can continue to be good stewards and make great decisions, we are looking at even more opportunities for adding revenue," Steed said.

What's next?

Budget discussions will continue over the next two months in Hutto. The district has a July 1 start to its financial year and must pass an operating budget by June 30.