Without the “disaster pennies,” FBISD would be facing a $26.2 million shortfall for the 2025-26 school year, Guinn said at the June 9 agenda review meeting.
What’s happening
FBISD officials approved the district’s 2025-26 budget at a June 23 board meeting with $901.6 million in projected expenditures and $906.6 million in revenue, which is about an 8.6% increase from FY 2024-25, Chief Financial Officer Bryan Guinn said. An additional $2.5 million will add to revenue from the district’s tuition-based extended learning program, Guinn said.
The increase is driven largely by increased state revenues and a one-time district compensation package, he said.
What’s changing
Instructional services, including teacher salaries, continue to be the largest spending item for FBISD, making up 60% of the total expenditures, Guinn said.
Much of the district’s budget planning has been influenced by House Bill 2, recently signed into law, Guinn said. This legislation allocates $21.5 million to FBISD for mandatory raises, referred to as Teacher Retention Allotment, or TRA, and Staff Retention Allotment, or SRA.
The budget includes the state’s mandated raises for experienced teachers approved in HB 2, which includes:
- $2,500 for classroom teachers with three to years of experience
- $5,000 for classroom teachers with five or more years of experience
- $515 for eligible employees such as librarians, counselors, instructional coaches, nurses and paraprofessionals
“While the state may not see them, we do,” said Kathleen Brown, deputy superintendent of operations. "We know that everyone that works in [FBISD] is a part of the mission, and they're all contributing to student success.”
The $30.7 million package includes bumping the starting salary for teachers from $62,000 to $63,000 and adding two wellness days for all full-time employees, according to Brown.
Additional package items, include:
- A $5,000 signing bonuses for employees hired by Dec. 19 for hard-to-fill positions such as bilingual, math and science teachers
- A $250 bonus each semester for bus drivers with perfect attendance
- A $500 district supplement for employees not eligible for the state’s allotment through 2027
The financials
FBISD will propose a tax rate of $1.0531 per $100 valuation, up from the FY 2024-25 rate of $0.99, officials said. The proposed tax rate is the first time since FY 2017-18 that the tax rate will be raised.
Although the tax rate is expected to increase, Guinn said the average homeowner in the district will see a decrease in their annual property tax, with a home valued at $424,900 seeing a $194 decrease. The decrease is due to the homestead exemptions approved by the Legislature to increase the exemption from $100,000 to $140,000, Community Impact reported. Voters will determine this amendment in the November election.
Zooming out
If the disaster pensions are adopted in September, both FBISD and Lamar CISD will both have a surplus at the end of the 2025-26 school year.
While Katy ISD officials project a $26.7 million shortfall for the 2025-26 school year, Chief Financial Officer Chris Smith said June 16 that it will likely not be the case by the end of the year due to underspending and property value refunds that have historically yielded millions of dollars.
What they’re saying
Board President Kristin Tassin said she was frustrated with the state’s limited role in funding salary increases. She emphasized that the board’s top priority is attracting and retaining high-quality teachers—a goal that, amid growing competition from neighboring districts and alternative school options, will require a temporary tax increase to support competitive pay.
“I don’t like to raise taxes,” she said. “But I want my kid to have the best teacher."
Moving ahead
In September, the board will vote on a proposed tax rate that includes the temporary disaster pennies, Guinn said. The tax hike, if approved, would be in place solely for the 2025-26 fiscal year, he said.
