The Magnolia ISD school board approved a $112.4 million balanced budget Aug. 18 for the 2014-15 school year that includes a reduced property tax rate, pay raises and additional staff.
MISD Chief Financial Officer Erich Morris said the $112.4 million operating budget is an increase of 3.4 percent over last year. The budget accounts for an increase in the starting teacher salary to $46,000 and a salary raise of 4 percent for all employees.
The school board also approved a 25 to 30 percent increase in the daily substitute teacher pay scale to $75 for those without a degree, $85 for those with a degree and $100 for those with a certification, Morris said.
"After assessing our [substitute teacher] pay versus our surrounding districts, we determined we were a little bit behind," Morris said. "The board was adamant that we needed to make our substitute pay scale a little more attractive."
MISD Superintendent Todd Stephens said MISD will add about 22 new employees, which includes 12 teachers and other professional staff.
The district will also benefit from a boost in the state funding allotment per student to $5,408—an increase of $90 over the 2013-14 school year, Morris said.
"The state increased an allotment per student in each of the two years of this funding cycle," Morris said. "I think it's important to note that although it is an increase in the amount per student, it doesn't fully recoup the amount decreased four years ago [in state funding cuts]."
One of the district's main revenue drivers is its overall appraised value, which is expected to rise 8 percent over last year based on certified tax rolls from the Montgomery County Appraisal District. The rise in the district's overall appraised value can be attributed to new housing and businesses on the east side of the district, Morris said.
"Eight percent growth—that's very healthy, and I think [the district's overall appraised value is] going to continue to grow," Stephens said.
For the first time since the 2009-10 school year, MISD announced a decrease in the property tax rate of 1 cent from $1.39 per $100 valuation to $1.38 per $100 valuation, Morris said. At the average home valuation of $212,817, taxpayers will pay $2,957 in annual property taxes—a savings of about $22, he said.
"[The school board members] feel comfortable they can meet the needs of the district with an actual reduction in tax rate, which is a great position to be in," Morris said.
