Magnolia ISD’s Chief Financial Officer Erich Morris recommended a proposed balanced general fund budget of $157.4 million for MISD’s 2025-26 school year at an Aug. 6 workshop meeting. Teacher pay increases are included in the proposed budget with the help of state funding from House Bill 2.

The MISD school board also approved a proposed total tax rate of $0.9583 per $100 valuation for fiscal year 2025-26 at its Aug. 11 regular board meeting.

Breaking it down

In the proposed budget, MISD would have $157.41 million in both revenue and expenses, which is about a $14 million increase compared to FY 2024-25, according to previous Community Impact reporting.
“Some of the headlines of the HB 2 school funding bill that will dictate our funding for the next two years—the largest item was the teacher pay increase for teachers with three or more years of experience,” Morris said at the workshop meeting.

MISD approved its 2025-26 compensation plan June 10, and it includes pay raises for all district employees with the help of funds from HB 2. The district said it would use local funds to fill any gaps in pay increases for all staff pay raises not included in HB 2.


Also of note

The proposed total tax rate of $0.9583 per $100 valuation for FY 2025-26 is $0.0312 lower than the FY 2024-25 tax rate, which was $0.9895 per $100 valuation, according to MISD’s finances website.
What’s next

The hearing on the proposed budget and tax rate will be held at 6:30 p.m. Aug. 25 at the Magnolia Event Center, 11659 FM 1488, Magnolia.