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The Beaumont ISD Board of Trustees voted unanimously to approve raises and stipends during the June 25 Regular Session Meeting.
Although the approved 2% increase and $1,000 stipend for all employees is not contingent on the voter’s approval in November, a proposed additional 3% raise is up in the air.
According to BISD CFO Cheryl Hernandez, the 2% increase will come at a cost of $2,009,279, and the stipend approximately $2.2 million for all employees, totaling $4,209,279 that is not contingent on a tax election the district reported would decide whether or not they are in a $3 million deficit the upcoming school year.
A VATRE, or Voter-Approval Tax Rate Election, is a special type of election in Texas where school districts ask voters to approve an increase in the property tax rate beyond a certain threshold. This election is required by state law if the proposed tax rate exceeds the voter-approval tax rate, which is a limit set by legislation. The purpose of a VATRE is typically to raise additional funds for various needs within the school district, such as teacher salaries, educational programs, facility improvements and other operational costs.
According to Hernandez, the district is proposing that taxpayers support a 9-cent raise in the Maintenance and Operations tax, balanced by a corresponding decrease in the Interest and Sinking Fund tax. This adjustment maintains the district’s total tax rate at $0.98410, leveraging the state’s “penny” system for school districts. Should it not pass, the tax rate would be lowered by 9 cents.
According to the district, the additional 3% pay increase for all employees is contingent on passage of the VATRE and employees would see wage adjustments in December to align with the total 5% increase. The additional 3% increase, should the VATRE pass, would come at a cost of $3,506,389.
BISD employs an estimated 2200 people, excluding Third Future Schools, and educates more than 16,000 students at 26 campuses.
The approved $460 per month insurance contribution, totaling $5,520 per employee per year, is the same as the previous budget. The board also approved a $10,000 life insurance policy paid for each employee at the cost of $16.08 each, which will come at the cost of $35,376 to the budget.
According to the district, if the VATRE does not pass, employees will retain the 2% raise, rather than the 5% raise, and it would restrict the district’s ability to recruit and retain high-quality teachers and staff. While the fund balance would cover the costs for the 2024-25 school year either way, the district reported that the failure of the VATRE would result in a budget deficit of nearly $3 million and that the school district would need to eliminate positions and programs for the 2025-26 school year budget.