Preliminary 2026–27 budget shows multi‑million shortfall; district models several raise scenarios

Miss Davenport and Mister Pate provided an early look at fund balance and the multi‑year general‑fund forecast. They reminded trustees the district typically targets three months of unassigned fund balance and noted a local permanent school fund of about $27.2 million that the board could consider for one‑time stabilization if needed.

Financial staff said the 2025–26 adopted deficit is roughly $27 million and that, absent reductions, the 2026–27 outlook could worsen (staff showed an illustrative worst‑case path approaching a $41 million deficit). Mister Pate summarized known and anticipated expenditure increases (special education staffing, utilities, insurance, UIL fees, added security positions) and placeholders in the forecast, including a $500,000 marketing placeholder.

On compensation, Doctor Goodson and finance staff modeled options: a 1% general‑fund across‑the‑board raise ≈ $3.6M; 2% and 3% scale upward (3% ≈ $10.8M based on current salaries and employer benefits, general‑fund only). Alternative models tested flat dollar increases for classroom teachers (e.g., $1,000 for years 1–10; $2,000 for 11+) plus smaller percentage increases for non‑classroom employees; staff noted that any raise scenario requires recalibrating the starting teacher salary (currently $63,000) to avoid step compression and meet House Bill 2 distinctions between certified and uncertified starting pay.

Trustees asked for detailed step‑by‑step salary schedules showing compression, and for the administration's April reduction proposals that will make budget tradeoffs clearer before any raise decision.