Round Rock ISD trustees on Tuesday night approved a compensation plan for the 2025–26 school year. With the Texas Legislature in session this year, school districts had to wait to finalize compensation plans and annual budgets as lawmakers worked on a public school funding bill. 

House Bill 2 (HB2), after significant amendments and changes by the Senate, was passed by both branches on May 29 and includes compensation allocations focused on teachers. Touted as a “historic” infusion of funding into public education, the legislation restricts districts’ ability to compensate non-teaching support staff.

“We’re glad our teachers are getting an increase in compensation—they deserve all of this and more,” said Superintendent Hafedh Azaiez. “Unfortunately, HB2 does not reflect or value the complexities of a public school system, especially the critical roles played by our campus support staff, principals, other administrators, and our non-campus staff.”

For staff not included in the funding bill, he said, Round Rock ISD will use local funds to provide a 1% pay increase based on the midpoint of their pay grade.

Pay increases that are included in HB2:

  • Classroom teachers with 3–4 years of experience receive a $2,500 increase to their base salary.
  • Classroom teachers with 5 or more years of experience receive a $5,000 increase to their base salary.
    • This is a permanent increase to the base salaries, not a stipend. No additional funding increases are included for 2026–27.
  • A new support staff allotment of $45 per Average Daily Attendance is meant to fund pay increases for 
    • Teachers with 0–2 years of experience
    • Librarians
    • Nurses
    • Counselors 
    • Other support positions and hourly staff – payroll specialists, maintenance staff, custodial staff, bus drivers, educational assistants

Maintenance & Operations Budget

HB2 also raised the basic allotment by $55 per student—from $6,160 to $6,215—far less than the roughly $1,300 per student needed for districts to keep up with inflation. Districts use the basic allotment to pay for district maintenance and operations—dozens of items such as salaries, insurance, classroom materials, security and food services.

“This is not new funding,” said Dennis Covington, chief financial officer and chief operations officer. “It supplants funding districts would have received from the golden penny yield—funding not subject to recapture—and moves the money to the basic allotment, making it subject to recapture. This legislative change lost the district approximately $1.1 million.” 

Round Rock ISD will receive about $27.6 million from new legislation, with about $17.6 million already earmarked by lawmakers. That leaves about $10 million for the district to cover compensation increases not included in HB2 and to address an $11 million deficit for 2025–26. 

“HB2 is keeping most districts in a deficit,” Azaiez said. “We’ll continue working to strategically and surgically reduce that deficit to get to a balanced budget.”

Pay increases

The support staff allotment in HB2 does not provide enough to fully fund even a 1% pay increase for those staff. The legislature did not include about 6% of Round Rock ISD employees in any compensation allocation. 

Those not included were:

  • Administrators – coordinators, assistant directors, directors, managers, programmers/analysts, executive directors, area superintendents, assistant superintendents, chiefs
  • Principals
  • Assistant principals

Trustees approved a 1% pay increase for those employees not included in HB2 allocations and the creation of a new pay schedule.

  • Teachers with 1–2 years of experience 
    • Adopt a $610 general pay increase
    • Adjust the teacher starting salary to $56,750
  • Librarians – move to a new salary schedule
    • Adopt a $655 general pay increase
  • All other eligible support staff (non-administrators)
    • Freeze the 2024–25 pay ranges within the salary structures
    • Receive an increase equal to 1% of the midpoint of their pay grade
    • Includes counselors, nurses, educational assistants, and other support staff
  • Campus and district administrators
    • Freeze the 2024–25 pay ranges within the salary structures
    • Receive an increase equal to 1% of the midpoint of their pay grade
    • Includes principals, assistant principals, coordinators, assistant directors, directors, managers, programmers/analysts, executive directors, etc.

The board will review and adopt the district’s 2025–26 Proposed Budget at the June 17 regular board meeting.