The district’s board of trustees also unanimously approved the budget for the upcoming school year at the meeting, but district officials said they expect to return with an amended budget before the end of the summer.
What you need to know
The state mandated pay increases come from House Bill 2 that passed the Texas Legislature earlier this year. The pay increase is only for teachers with three or more years of experience. Those mandated pay increases include:
- $2,500 increase for teachers with 3-4 years experience
- $5,000 increase for teachers with 5+ years experience
Board members considered various options to set aside local funds that would increase the pay for other teachers and staff members outside the state requirements. Compensation increases approved will include:
- A new starting salary of $63,500 for first-year teachers entering McKinney ISD, representing a $1,400 increase from the prior year
- A 4% pay increase based on the midpoint of pay grades for paraprofessional, auxiliary and maintenance employees
- A 3% pay increase based on the midpoint of pay grades of all non-hourly professional staff, which includes administrators and other salaried employees
“All of our teachers deserve raises, absolutely. To me, they are our heroes, but it’s more than just our teachers, it is our paraprofessionals,” Ussery said. “What would we do without our counselors and our paraprofessionals? They pour into our kids as well, so all of our district employees deserve to have a boost.”
The option chosen is estimated to cost the district about $9.9 million in the upcoming school year, including drawing nearly $6 million of those funds from the district’s fund balance, according to a presentation at the meeting.
“This is not a balanced budget, but we want to reward our teachers,” trustee Stephanie O’Dell said.
The compensation plan is expected to be adopted as part of a budget amendment planned for August, district documents state.
Quote of note
“McKinney ISD is committed to remaining competitive in today’s challenging job market, and that begins with investing in the incredible people who serve our students every day,” Superintendent Shawn Pratt said in a news release. “We value the dedication and impact of our teachers and staff, and this compensation plan reflects that appreciation.”
Diving in deeper
A breakdown of the general operating budget for FY 2025-26 includes:
- $258.9 million in estimated revenue
- $266.4 million in expenditures
- $7.5 million projected shortfall
The budget was determined based on guidance from the Texas Education Agency that directed school districts that have to adopt the annual budget by June 30 to formalize the budget using data from prior to the passage of HB 2. The guidance also directed district officials to anticipate amending the budget at a later date to reflect the additional funding and information from the bill when it is available, Harbeson said.
Harbeson said that during the budget amendment, changes to various elements of the district’s revenue will affect the budget and projected shortfall. The district’s recapture, currently projected to be $8.8 million, will also change, she said.
Looking ahead
The proposed 2025-26 property tax rate is $1.0780, a nearly 5-cent decrease from the prior year’s tax rate of $1.1252. The tax rate is composed of two parts including:
- The maintenance and operations rate, which is set at $0.7080. This portion of the tax rate is determined by state law, Womack said at a May 12 meeting.
- The interest and sinking rate, or debt service rate, which is set at $0.37. This portion of the tax rate is determined by district officials.
The average single-family home in McKinney has increased about $6,000 from the prior year to around $581,600 in 2025, according to a presentation at the May meeting. Harbeson said the owner of an average single-family home can expect their tax bill to decrease by $162. The school board is expected to adopt the tax rate during its Aug. 19 meeting.
