Minimal pay raises proposed for HISD

Financial outlook still too hazy, officials say

Nearly all Houston Independent School District employees would see minimal or no pay increases under a budget proposal for the 2021-22 school year, a reflection of uncertainty about the district’s financial outlook, Interim Superintendent Grenita Lathan’s administration said Wednesday.

While schools across Texas could receive large infusions of federal stimulus funds in the coming months, HISD officials said it is too early to bank on that money as they craft spending plans for the upcoming school year. HISD is projected to receive more than $1 billion in stimulus through 2024, but state officials could still decide to cut into that chunk or attach strings to the money.

HISD’s enrollment decline, coupled with limitations on adding revenue under the state’s revamped school finance system, leave little money for boosting employee pay, administrators said.

“It is a challenge to try to figure out how many kids we might or might not have, what’s going to happen with the state and so forth,” HISD Chief Financial Officer Glenn Reed said.

The proposal marks the first step toward HISD school board members approving an annual $2 billion budget by the June 30 deadline set out in state law.

Administrators and some board members have battled over Lathan’s budget proposals in recent years, with trustees arguing the district should increase staff compensation and cut spending in other areas. Frustration also has brewed when administrators

initially forecast significant budget deficits, then showed surpluses at the end of the fiscal year.

Under the initial plan, HISD teachers, counselors, nurses and other employees on the same salary schedule would see a “step” increase — which ranges from $50 to $2,365, depending on years of experience — and a $500 one-time bonus under the proposal. All other staff members, with a few exceptions, would get a $500 retention stipend.

The largest raises would go to elementary school principals, who would net a $5,000 increase, and all assistant principals and deans, who would earn an additional $2,500.

“This is the group that has continually been left out, so we feel it’s really time to advocate for (them),” HISD Chief Human Resource Officer Julia Dimmitt said.

All employee also would receive a $750 one-time bonus to honor their work during the pandemic.

For nearly all staff members, the pay bumps would be offset in some measure by a 10 percent increase in employees’ health insurance costs.

HISD also expects to maintain an additional $19 million in spending on special education, which trustees approved in October, and $6 million to finish staffing all campuses with a wraparound resource specialist who addresses students’ nonacademic needs.

HISD trustees asked numerous questions about the proposal Wednesday, with some expressing unease about a potential reduction in the amount of money that campus-based leaders would decide how to spend.

District officials are recommending a 4 percent cut to per-student funding sent to each campus, which principals use to set their budgets for hiring staff members and covering some program expenses, among other costs. The trim would help offset increases in staff pay and special education spending.

Reed said the initial proposal runs a $72 million deficit, though he acknowledged that number could decline by tens of millions of dollars depending on multiple factors. The district’s rainy day fund totals about $650 million, roughly $150 million more than the state-recommended minimum.

“Every year, I’m wanting to see there’s not going to be a budget deficit,” HISD Trustee Holly Maria Flynn Vilaseca said. “Since I’ve been on this board, that has yet to come to fruition. I know things just get harder and harder, year over year.”

The projected deficit could shrink if HISD’s enrollment bounces back after a roughly 10,000-student decline amid the pandemic, bringing more revenue into the district. For budgeting purposes, HISD administrators are planning for the return of 5,000 students, mostly in prekindergarten and early elementary grades.

The proposal did not include plans for delivering more academic support in 2021-22, which likely would be covered by federal stimulus funding. Lathan said she expects to present detailed proposals, which could include money for additional tutoring services and an extended school year for some students, in the next couple of weeks.