Even with new state funding, staff layoffs possible
HUTTO — The Hutto Independent School District faces a $3.5 million deficit for the second year in a row, but officials are hoping extra state-mandated funds will soon create a brighter financial outlook.
However, if the deficit cannot be reduced enough, Superintendent Jenni Neatherlin warned more belt-tightening including personnel cuts may be an option.
“Our goal is to make sure we do not impact student instruction,” she told trustees during the June 26 meeting.
School board members also approved teacher pay hikes. Hutto ISD determined its budget before Gov. Greg Abbott on June 4 signed House Bill 2, a sweeping school finance measure that pumps $8.5 billion into educational coffers including raises for teachers.
Still, trustees sounded a word of caution following a presentation on the 2025-26 budget by Chief Financial Officer Caleb Steed.
“We can’t keep passing a $3 million deficit budget,” said board President Billie Logiudice.
Instead of reworking the budget to adopt the new changes, Steed asked trustees to approve the current version, adding it will be amended in August or September when extra funding from HB2 kicks in.
The bill goes into effect Sept. 1.
“We say House Bill 2, but it’s more than that,” Steed said.
He noted several different bills and other legislation, including homestead exemptions, will have an effect on the district’s revenues.
In addition, Hutto ISD will not see all of its debt eradicated, leaving Logiudice to ask what plans Steed and his team had for balancing the budget.
“Once we make sure we understand what the new law holds … we have to look at the personnel piece,” Steed said.
Under HB 2, teachers with three to four years in districts with 5,000 or fewer students receive a $4,000 raise; those with five years and upwards stand to earn $8,000.
Teachers with three to four years classroom experience in districts with student enrollment greater than 5,000 will see a hike of $2,500; educators with five years or more pull down an extra $5,000.
The system, dubbed the Teacher Retention Allotment, does not include first- and second-year teachers, though some districts including neighboring Taylor Independent School District are also giving those educators a raise.
In addition to approving teacher pay hikes for veteran educators June 26, Hutto also voted to give a general 1 percent pay increase for teachers with less than three years’ experience and other school employees.
Trustee Amy English questioned whether a 1 percent salary bump for non-teaching staff was competitive with surrounding schools, but Neatherlin confirmed it was a comparable pay rate and mentioned the Georgetown Independent School District was paying its employees in a similar fashion.
Thrall Independent School District, however, provided a 3 percent raise for its staff.
With a 10,000-student enrollment, Hutto ISD doesn’t qualify for the extra funds that rural schools with 5,000 students or less received, but Hutto teachers still earned an extra $2,500 to $5,000 increase depending on their years of experience.
Hutto ISD employee salaries make up 86% of the district’s budget.
In the last two years, Steed and his team trimmed 20% of the budget, excluding payrolls, but when compounded with 19% inflation, “We are operating on the non-payroll side as tight as we can,” he said.
To avoid layoffs, Neatherlin said the goal will be to put money back in the fund balance, determine where costs can be cut and keep moving forward Regular board meetings are held 6 p.m. the fourth Thursday of the month in the Hutto ISD Administration Building at 200 College St.
Meetings can also be viewed live at hipponation. org/ board-oftrustees/ watch-boardmeetings- live.
“
Once we make sure we understand what the new law holds … we have to look at the personnel piece.”
— Caleb Steed, Hutto ISD chief financial officer
