Montgomery ISD Budget Draft Includes 3% Employee Raise
Montgomery ISD's draft 2026-27 budget includes a 3% pay raise for all eligible staff and a $1,000 hike to starting teacher pay ($61K).
MONTGOMERY — Montgomery Independent School District is positioning itself for a period of growth and staff investment, as administrators unveiled a draft budget for the 2026-27 fiscal year during a June 11 workshop that features a proposed 3% across-the-board pay raise for all eligible employees.
The proposed financial roadmap, which is set to take effect July 1, targets a modest $100,000 surplus. Budget planners are projecting $123 million in revenue against $122.9 million in expenditures. A significant portion of that spending is dedicated to the salary increase, an initiative Superintendent Dr. Amy Lacey described as a critical lever for both recruitment and retention.
Under the current proposal, the district’s starting teacher salary would see a $1,000 increase, rising from $60,000 to $61,000. District officials emphasize that keeping pay competitive is essential as the region continues to experience rapid residential development.
Growth remains a defining factor for the district’s long-term planning. MISD expects a 2.2% increase in student enrollment for the upcoming academic year, bringing the total student population to approximately 11,041—an addition of 239 students. This expansion mirrors the rising property values within district boundaries, which saw a 10.6% increase this year.
However, the path to a balanced budget is not without fiscal headwinds. District leaders noted that state funding formulas remain in flux, particularly as the "hold harmless" provision from House Bill 3—which previously shielded districts from certain attendance-based funding losses—nears its expiration. The loss of this safety net adds a layer of complexity to the district's long-term financial forecasting, forcing leaders to balance the need for increased teacher pay against uncertain legislative funding.
The Montgomery ISD Board of Trustees is slated to provide final approval of the budget in August. Discussions regarding the district’s property tax rate, which currently stands at $0.9664 per $100 valuation, are scheduled to be taken up by the board in October.
The district typically makes budget documents available to the public via the MISD website at www.misd.org as they are finalized. Community members interested in the budget process are encouraged to monitor the board’s meeting schedule for upcoming public hearings, where taxpayers can provide input on how the district allocates its resources.
For further information on district developments, residents can visit the district’s transparency portal or follow the Montgomery ISD official communication channels.