With the 89th session of the Texas Legislature at its end, Willis ISD discussed the budget, teacher compensation and options for the 2025-26 fiscal year budget that has a potential projected shortfall of up to $900,000 on June 9.

WISD Chief Financial Officer Garrett Matej discussed the budget along with the impact of the opening of Calfee Middle School and House Bill 2, which will provide permanent raises for educators and support staff; overhaul how the state funds special education; and set aside money for schools to spend on fixed costs, such as utilities and insurance.

“All of the figures presented are strictly projections off of current understanding of the new legislation and different budget options. I do anticipate those numbers shifting as we get more clarity on House Bill 2 and [they are] not representative of what the final adopted budget will be,” Matej said in a statement to Community Impact.

How we got here

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.

“I think my goal in Willis and my team’s goal would be to try to do something for those teachers with zero to two years [of] experience, especially those that were zero last year and returning,” Matej said.

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.