The employees of all Texas public schools will receive raises, thanks to funds provided to the states by the President's stimulus package. The Texas legislature was confronted by a projected deficit as they began the legislative session in January. Fortunately, the Federal government approved a major stimulus package to assist cash strapped states to balance their budgets.
HEB ISD will receive $2.9 million new dollars from the school funding plan that the state legislature approved in May. These additional funds will allow the HEB ISD Board of Trustees to grant a 2 percent salary increase to all district employees. Welcome news for everyone - - a raise for thousands of district workers, but no local property tax increase for the recession racked patrons.
However, Texas is not out of the woods economically. The state faces major budget deficits in the near future.
In 2011, Texas will face the cold hard reality of recent property tax cuts. The mandated one-third reduction in school district property taxes was supposed to be offset by the now, expanded business tax. This has not happened, leaving the state government facing an estimated $11 billion deficit in 2011.
HEB ISD administration is preparing the school district for the possibility that there will be no additional funds from the state until 2013. Fortunately, the school district is operating in the black and has four months operating expenses in reserve. Of course, one would expect this of a school district that has received the highest rating as the top school district in the state from Education Resource Group for the past three years.