Montgomery ISD board of trustees approved a $104.9 million balanced budget for the 2025-26 fiscal year at its meeting on June 24. As part of the budget, board members approved MISD’s employee compensation plan, which will give salary raises to all district employees.

“We as a board are thankful for what happened in Austin and locally with our community that stood up and supported [Proposition A],” board President Eddie Winn said at the meeting. “We were in a difficult spot last year and we were faced with having to make some difficult decisions and this board was tasked with having to go out for a VATRE and we didn't take that lightly. We knew that it was in the best interest for our students and our staff and our community and we just want to thank the community for rising up and supporting our district.”

How it works

The approved budget comes soon after Gov. Greg Abbott signed House Bill 2 into law June 4, giving nearly 9,000 public schools in Texas an $8.5 billion funding boost over the next two years.

In the board meeting, MISD said the salary raises are made possible with a combination of HB 2 and local funds. According to a June 24 news release, for employees on the teacher, nurse and librarian hiring schedule, the pay raises are as follows:
  • 0–2 years of experience: $2,600-$2,895 raise (locally funded)
  • 3–4 years of experience: $2,900 raise (includes $2,500 from HB 2 and local funds)
  • 5+ years of experience: $5,250 raise (includes $5,000 from HB 2 and local funds)
“Thanks to the support of our community through Proposition A, and the increased funding through House Bill 2, we are able to provide all staff members with meaningful compensation increases and increase teacher pay beyond the state-funded amounts for teacher raises included in the new Teacher Retention Allotment,” MISD Superintendent Mark Ruffin said via news release.


Breaking down the budget

The bulk of the general fund budget is allocated to instruction, which—according to a budget presentation from MISD’s Chief Financial Officer Ben Davidson at the board meeting—includes added positions, payroll increases, residential special education and software expenses.
What else?

The district said it will give all employees a one-time $500 retention stipend in December, according to the news release. Along with the stipend, other district employee pay raises include:
  • 6% raise for employees on auxiliary/support, clerical/paraprofessional, safety and security, child nutrition and transportation pay schedules
  • 4% raise for employees on the administrative/professional staff hiring schedule
  • $5 per day increase in the substitute teacher daily rate
MISD’s budget also makes room for new positions on multiple campuses, which the district said was made possible with the help of the $5.5 million voter-approval tax rate election in November 2024.

New positions for 2025-26 include:
  • Four teacher positions for growth and class size reduction
  • Third assistant principal at Oak Hills Junior High
  • Four campus-based instructional coaches
  • 28 special education positions districtwide
  • Budget for increased staffing in other areas like transportation