HISD Officials Propose Employee Pay Raise, Minimum Wage Increase in $2B Balanced Budget   

HISD’s preliminary budget shows the District plans to bring in roughly $2 billion next year and spend about the same while maintaining an estimated  $730 million fund balance. That amount exceeds the Texas Education Agency’s recommended $518 million reserve needed to maintain normal operations for three months without additional revenue.

“A balanced budget would be huge, especially after overcoming a $520 million deficit in the second year of the intervention,” Superintendent Mike Miles said. 

Ahead of the 2026-27 school year budget approval, HISD administration is recommending a 4% general pay increase (GPI) for eligible central office employees, along with raising the district’s minimum wage from $15 to $17 per hour. The minimum wage increase would impact some Facilities, Maintenance, and Operations staff, nutrition service attendants, bus driver trainees, and student interns. 

Teacher compensation will also increase through the Teacher Excellence System (TES), the pay-for-performance plan that will be used throughout the district. Under TES, certified teachers can earn between $70,000 and $101,000 annually based on classroom performance, raising the average teacher salary from $68,000 in 2023 to $83,000 in 2026. 

Miles said the district has steadily increased the share of funding directed toward classroom instruction and instructional leadership since 2023, from 57% of the total budget to 72% in 2026. 

District officials said the proposed compensation increases reflect an ongoing commitment to addressing rising cost-of-living pressures, supporting employee retention and maintaining strong instruction for students.

“Our budget supports what matters most: strong instruction, better outcomes for students, and responsible use of taxpayer dollars,” Miles said. “We are making deliberate choices to protect classrooms, invest in teachers and principals, and maintain long-term financial stability.”

Health Insurance Changes

HISD is facing the same rise in health insurance costs experienced by 75% of school district leaders nationally, according to a March 2024 EdWeek Research Center survey. Officials have proposed increasing the district’s contributions to HISD employee healthcare by $4 million.

There will be no changes to employee health plan premiums before January 2027. Employees enrolled in the district’s health plans are expected to see premium increases. Additional details regarding plan options and rates will be shared in the coming months and during the open enrollment period, from Oct. 26-Nov. 6. Any increases will begin in January 2027.

The proposed budget, which will finalize staff pay and district spending, will be voted on by the HISD Board of Managers on June 11.