Fort Bend ISD administrators propose 1-time property tax rate increase to cull $34.6M shortfall

“We want to make sure that any decisions that we make here as it relates to the budget has minimal impact on students, on learning, on teaching,” Guinn said.

Another bill, House Bill 2, would generate approximately $30.8 million in new revenue for the district in the 2025-26 school year if passed in its current form. This translates to roughly a 3% raise for teachers and 2% for other staff, Guinn said.

However, Guinn said these figures remain preliminary and dependent on final legislative language and FBISD board approval. Additionally, the bill has yet to undergo a Senate vote before arriving at Gov. Greg Abbott’s desk for approval, according to Texas Legislature Online.

“[To] any staff members listening to the thought that we may get raises next year, ... do not take that money to the bank,” Guinn said. “We still are pending the outcome of the legislative session, as well as board action.”

Even with the HB 2 funds and cost reductions, the district would still face a $7.8 million deficit that would require the district to dip into its reserve fund, causing it to fall short of its 90-day operating reserve requirement for the following 2026-27 school year, Guinn said.

Using the seven “disaster pennies” as a one-time tax increase could raise an additional $35.1 million in revenue, Guinn said.

The impact

Future annual staff raises would be funded through HB 2, while retention bonuses would be funded by disaster pennies and wouldn’t carry over to future years, Guinn said.

If all seven disaster pennies are used, a $500 retention supplement would result in a reserve fund balance increase of $21.6 million and 99 reserve days, while a $1,000 supplement would result in a fund balance increase of $16.1 million and 97 reserve days, Guinn said.

Guinn said the extra funds would give the district flexibility to:

• Maintain its AA+ bond rating, meaning the district is considered a safe investment for lenders
• Avoid further cuts and protect existing programs
• Fund one-time staff retention supplements
• Cushion potential student enrollment declines from the state’s private school voucher program, which was signed by Abbott May 3
• Launch or support initiatives like premier programming

Next steps

Trustee Angie Hanan encouraged board members and the community to reach out directly to legislators to voice support for HB 2, especially as the end-of-session deadline nears on June 2.

However, after the end of a regular session, Abbott may call a special session to cover specific topics, according to the legislature website.

FBISD’s next formal budget workshop is scheduled for May 19 before the regular board meeting where trustees will vote on the public hearing date for the tax rate, according to board documents.

The final adoption for the tax rate and budget is slated for June 23, Guinn said.