Willis ISD discusses how HB 2 will impact its 2025-26 budget

HB 2 establishes a $3.7 billion teacher retention allotment, which will be used to provide permanent raises for teachers with at least three years of classroom experience. The legislation includes larger raises for teachers in small school districts, as previously reported by Community Impact.

In districts with an enrollment of 5,000 or more, teachers with three to four years of experience will receive a $2,500 annual raise, while those with five years of experience will receive a raise of $5,000, according to the bill, which was signed into law on June 4 by Gov. Greg Abbott.

The outlook

Matej said he was speaking with other school districts in the area to see how the law will be put into effect for the raises. With the financial circumstances the district is in, it will have to look into the following options in line with HB 2 requirements:

• Adjust teacher pay scales in line with HB 2.
• Implement a 3% pay increase for staff and administration.

Funds for raises for teachers with less than three years of experience were not included in HB 2.

Under the projected budget, the district’s revenue is projected to be $96.07 million. The projected expenditures for the district are $96.17 million with the teacher raises, or $96.96 million including the raise and increase for staff. The potential shortfall would be $102,498 or $886,838, respectively, depending on the budget scenario, Matej said.

Officials also discussed the possible tax rate for the district being $0.987 per $100 valuation for the 2025-26 fiscal year, a $0.0479 difference from the previous year’s tax rate of $1.0349 per $100. There was discussion of funding options for the district, including a voter-approval tax rate election.