Correction: A previous version of the story said the pay raises and contributions to medical premiums totaled $15.6 million. The total is $17.1 million.
Frisco ISD's 2019-20 budget includes increased pay for teachers, a reduced tax rate and a smaller projected recapture payment, thanks in part to a new school finance law.
The FISD board of trustees approved the $564.6 million operating budget June 12, the day after Texas Gov. Greg Abbott signed House Bill 3, which overhauls the state's school finance system.
Under HB 3, FISD will receive about $90 million total from the state, up 18.6 million from current law. Some of increased funding from HB 3 is required to go toward increased compensation for non-administrative employees. The district is also projecting to pay $41 million less in recapture with the new law.
FISD taxpayers will also see a 7% decrease in the district's tax rate, another requirement under HB 3.
"House Bill 3 is very positive for us and for our district," said Chad Rudy, who was selected as FISD board president June 10. "... That's giving us more money, and we're able to do what our priority has been all along, which is to try to get more teachers, reduce our class sizes and get our compensation at competitive rates."
FISD is giving all employees on the teacher pay scale a $2,000 pay increase. Teacher with five or more years of teaching experience will also receive an additional $500. The district is also increasing the starting teacher salary from $53,000 to $54,500.
Other employees will receive a 3% of midpoint raise as well as market or individual adjustments as applicable.
The pay raises along with the district's decision to contribute $25 more per month toward employee medical premiums total $17.1 million.
Under the budget, FISD will also hire more teachers, which will help reduce class sizes. In the 2019-20 school year, FISD plans to add 120 secondary teachers and more than 30 elementary teachers.
HB 3 goes in effect Sept. 1, and FISD plans to adopt its tax rate in August.