Sheldon ISD trustees approve amended pay package and retention stipends while wrestling with $8.6M deficit

The Sheldon ISD Board of Trustees approved an amended compensation package and retention stipends after extended discussion about district finances and enrollment-driven revenue pressure.

Administration presented two compensation options. Trustees ultimately reached a consensus to adopt a modified version of Proposal A that increases pay for auxiliary and paraprofessional staff to $0.45 per hour and includes retention stipends (the motion as recorded included a total estimated cost of about $2,976,000). The motion to approve the amended package was moved by Miss Martinez and seconded by Miss Brando; the chair called the motion passed.

Finance staff briefed trustees that the district’s adjusted 2025–26 projections showed an $8.6 million gap driven in part by enrollment declines. The presenter said projected year‑end fund balance is roughly $31.3 million, down from $36.3 million after the prior-year audit. "So based on today's numbers, the projected fund balance is going to be $31.3 million," the finance presenter said, while outlining $3.3 million of current-year reductions already identified.

Trustees debated trade-offs between recurring salary increases and one-time retention payments. Board members noted that a larger percentage raise would produce a greater recurring budget pressure (the minutes record a roughly $315,000 annual difference between a 2% and a 2.5% raise example presented), while a retention stipend is a nonrecurring lump-sum payment that provides short-term morale support during holiday pay periods. Several trustees said they preferred balancing modest recurring raises with retention stipends to retain hourly employees and bus drivers in a tight labor market.

The administration noted those actions will draw on fund balance in the short term and reiterated that continued enrollment growth or improved state funding would alter future budget decisions. The finance presenter said administration will continue to identify savings and present updates; the board did not adopt a change to the adopted budget beyond approving the compensation package at this meeting.

Votes at a glance:
- Action: Adopt amended compensation package (modified Proposal A: auxiliary/paraprofessionals $0.45/hr; retention stipends included). Outcome: approved. Transcript evidence: motion recorded and chair stated "Motion pass." (see discussion around SEG 1163–1177).
- Action: Approve sale of approximately 10-acre surplus district tract and authorize superintendent/designee to negotiate/execute documents. Outcome: approved. Transcript evidence: board approved motion and authorized execution (see SEG 1208–1216).

Next steps: Administration will implement the approved compensation adjustments and continue efforts to reduce the structural deficit; trustees asked for continued monthly budget updates and for staff to return with requested analyses (for example, a review of the child nutrition fund if the board requests it).