Round Rock ISD administrators shared an update on financial planning for the upcoming budget year in May, highlighting a potential small surplus of a couple hundred thousand dollars.
However, if trustees choose to implement a compensation plan that includes a pay raise for employees not included under last year's school funding bill, they may have to ask voters for a 5-cent increase to the district's tax rate.
What you need to know
Chief Financial Officer Dennis Covington presented a budget projection for the 2026-27 financial year in a May 19 board meeting showing a planned $485.9 million in expenses against $486.2 million in revenue, resulting in a surplus of $291,000.
The May update includes the reduction of about 53 staffing positions, as well as 21 teaching and learning positions through unfilled vacancies and lapses salaries, Covington said.
Alongside the budget update, Human Resources Chief Eddie Curran presented a compensation plan showing that the district cannot provide raises to teachers not included under House Bill 2 in the 2026-27 financial year without significant additional funds.
Curran said a 5-cent increase to the district's maintenance and operations tax rate of $0.7054 per $100 of valuation could generate the roughly $10 million in additional property tax revenue needed to provide a 2% general pay raise, increase starting teacher pay to $58,000 and address pay compression throughout the district.
"There will be no additional funding from the state this year to support districtwide pay increases," Curran said. "Whatever was baked into the 89th legislative session through House Bill 2 is what we get this year. I want to make sure that's abundantly clear. That's the situation we're facing with as we come up with some scenarios."
Offering input
Several members of Education Round Rock, the district's teacher union addressed the board of trustees asking for a $20 minimum wage, a $2 raise for hourly employees and a $1,000 retention bonus, stating that 1% raises amounted to "mere cents per hour" and do not address the rising cost of living.
Parents also asked that positions related to gifted programming not be cut.
In an email to Community Impact, Anne Drabicky, RRISD chief of public affairs and community relations, confirmed the district plans to reallocate TAG teacher staffing at the campus level based on enrollment levels. This will not interfere with district programming, which includes 80 minutes per day for accelerated math and 30-60 minutes of talent development provided to students. Per the district's human resources department, the norm for educators who will no longer serve as TAG teachers would be to fill another open teaching position at that campus based on their certifications and campus needs, she said.
Remember this?
The district last sought a tax rate election in 2023. That election, which voters approved, also sought additional tax revenue to increase compensation.
What's next?
While trustees did not vote on any action related to a tax rate election, district administrators said decisions would need to be made in the next few months, as it would coincide with the district's November board election.
