Karen Smith, Cy-Fair ISD's chief financial officer, proposed a 2% pay increase for all CFISD staff in a preliminary fiscal year 2022-23 budget presentation at the May 9 board meeting. The board of trustees indicated a desire for a 4% salary increase at the expense of taking a month’s worth of the district’s reserves to foot the bill over a timeframe not to exceed five years.
The district is planning for a $1.1 billion budget, 89.6% of which is dedicated to payroll costs. However, with just over $1.06 billion in revenue expected, the current outlook leaves CFISD with a $77 million shortfall. Smith said she anticipates federal pandemic relief funds known as the Elementary and Secondary School Emergency Relief Fund to cover that deficit.
Under the recommended 2% pay increase plan, starting teacher salaries would be raised from $58,500 to $60,000, for a total cost to the district of $16.9 million.
Pay increases would also extend to substitute teachers, increasing daily pay from $92 to $110. Pay increases were also included for custodial staff, raising their pay to $12 an hour. Custodial pay was a point of concern among senior board members, who recalled past pay rates of $8 per hour, reflecting systemic minimal increases in pay for custodial staff.
Another benefit CFISD staff will see is a decrease in insurance premiums, showing a change in what is typically seen by staff members, officials said.
Board President Tom Jackson proposed updating the pay increase to 4% and using a month of the backup funding that is stored to alleviate the deficit that would ensue. Jackson also referred to reinstating keeping full-time substitute teachers on campuses to alleviate teacher burdens for peer absences.
Trustee Julie Hinaman recommended taking on a tiered approach in distributing pay raises. This idea was corroborated by Trustee Natalie Blasingame, who said she wants to see more funds applied to paraprofessionals and to support disciplinary efforts.
Teacher compensation data from neighboring districts revealed CFISD pays more than most, competing mostly with Spring Branch ISD. While CFISD has higher pay for retained teachers, SBISD had a higher starting salary of $59,000 for FY 2021-22.
Staff vacancies sit at 400-450, excluding bus drivers and custodial staff, and the district is aiming to fill these positions.
Funding the budget
Smith said developing the budget is often a balancing act between local property taxes and state aid. This is reflected when property values increase, as they have this year, leading to less funding. State aid is allotted based on enrollment, average daily attendance, special populations and property wealth.
Data from the Harris County Appraisal District showed the upcoming fiscal year will see a 13% increase in taxable property values. The increases do not provide additional funding to the school but to the state, officials said.
Based on anticipated revenue for fiscal year 2022-23, the state is contributing about 38% of funding compared to 53% in local property taxes.
According to Smith, the state funding formula pays out a flat $6,160 per student without an adjustment for inflation. While that allotment remains the same, according to Smith and Hinaman the cost of educating a CFISD student is $9,356 per student, a $3,196 difference.
To review the full presentation, follow this link. The board is expected to approve the 2022-23 budget in June.
