April 5, 2022 — Special Meeting
Conroe ISD Board Meeting — 2022-04-05
Special Meeting — Unofficial Notes
Based on auto-generated transcript. Not an official record.
Generated 2026-03-28 14:25 UTC
Unofficial Meeting Notes
Conroe Independent School District Board of Trustees
April 5, 2022 — Special Meeting (Workshop at 2:00 PM & Called Board Meeting at 4:30 PM)
These are unofficial notes based on an auto-generated transcript and may contain errors or omissions.
PART 1: BOARD WORKSHOP (2:00 PM)
Public Comment
- No citizens signed up to address the board.
ESSER Funding Update
Presented by Dr. Hines and Dr. Pam Zoda (Director of Federal Programs)
ESSER I:
- Bulk of funds went to funding attendance during the last nine weeks of 2020.
- Small amounts used for private nonprofits and some equipment purchases.
ESSER II (~$28–29 million):
- ~$10 million taken off the top by the state for attendance offsets in 2020–21.
- Funded supplemental campus formula staff (teachers beyond 22:1 ratio), Chromebooks ($5 million), reading libraries ($2 million), a programmer, and the fall semester virtual academy.
- For 2022–23: ~$3 million budgeted for campus formula staff (released early for aggressive hiring), district support staff, indirect costs, and additional non-personnel items (Wi-Fi improvements, Chromebooks).
- ESSER II funds must be spent by end of 2022–23 school year.
ESSER III (~$65 million):
- Required to spend at least 20% on learning recovery; district is approaching ~50%.
- Key allocations include:
- Expanded summer school (free tuition, increased teacher pay to attract staff)
- Campus formula staff supplements
- ~$9.2 million distributed to campuses for learning recovery (software, hardware, interventionists, counselors) over a two-year planning period
- District support staff (positions in HR, payroll, elementary/secondary education)
- Health services department expansion ($8 million)
- Equipment purchases ($1.6 million)
- Virtual Academy: District plans to apply for a campus ID number to offer limited virtual school for grades 5–8, to be brought to the board at the next meeting
- Employee retention stipends: $5 million placeholder
- Attendance hold harmless: $4.5 million placeholder
- Math support: Targeted funding for math learning recovery
- T-Class pipeline program: Full-year student teacher residencies funded partly with ESSER
- Additional assistant principals for campuses with heavy Teacher Incentive Allotment (TIA) workloads
- For 2023–24: $4 million placeholder for stepping off the ESSER funding cliff, $2.2 million in indirect costs, summer school funds, and virtual academy support.
- ESSER III funds must be spent by end of calendar year 2024.
Key Discussion Points:
- Board member asked whether ESSER-funded staff positions are short-term or long-term. Dr. Hines confirmed they are long-term positions the district will need to absorb into the general budget, though turnover and growth provide capacity to do so.
- Dr. Null emphasized that aggressive early hiring helps teacher satisfaction and retention — teachers value being supported with adequate staffing.
- The district is working to identify alternative funding sources (Title funds, IMA, Medicaid) to transition positions off ESSER before the funding cliff.
- Board members confirmed that funds can be reallocated between line items if needs change, providing significant flexibility.
Preliminary Budget Overview (2022–2023)
Presented by Darren Rice, Chief Financial Officer
Legislative Update
- May ballot item: Voters will decide on an additional $15,000 homestead exemption (increasing from $25,000 to $40,000). Districts will be held harmless for the loss in value.
- TEA attendance hold harmless: Approved for the 2021–22 school year (1st through 4th six-week periods), generating approximately $10 million for the district — essentially a break-even given attendance at ~92% vs. budgeted 94%.
Budget Objectives
- Meet needs for 2022–23, including opening Gordon Reed Elementary
- Provide competitive compensation
- Aggressive staffing allocations
- Safe and productive learning environment
Enrollment & ADA
- Projected enrollment: 69,515 students (increase of 1,750 — more aggressive than the typical ~1,500 growth assumption)
- ADA rate used: 94% (some risk acknowledged given COVID-era 92% rate)
- ESSER includes a $4.5 million attendance relief cushion (~1% buffer)
- Dr. Null stated that moving from ADA-based to enrollment-based funding is his #1 legislative priority — most states no longer fund based on ADA
- Current enrollment (as of meeting date): 68,500
Property Values & Tax Rates
- Initial property value estimate from appraisal district: ~29% growth
- District is using a conservative 15% growth estimate, bringing certified values to ~$49.6 billion (increase of ~$6.4 billion)
- Some districts in the Dallas/Austin area have seen 50%+ increases
Tax Rate Compression — Key Discussion:
- Under state law, increased property tax revenue is offset dollar-for-dollar by decreased state funding — the district receives no net new funding from property value growth on the M&O side
- Whether property values increase 2% or 30%, the district's total funding remains the same
- The state is the sole beneficiary of property tax increases as its liability decreases
- State share of CISD's budget: 41% in 1997 → projected 26% in FY2023
- Board members expressed concern that taxpayers will see higher school tax bills and assume the district is receiving more money, when in fact the state is keeping the savings
- Dr. Null noted the state will be "flush with cash" heading into the next legislative session
- If property values were to increase enough that locally generated revenue exceeded the district's entitlement, the district could enter recapture (sending money back to the state)
Projected Tax Rate: $1.1146 (down 6.14 cents), with M&O at $0.8546 (at the compression floor) and I&S at $0.26
- Total decrease of 16.54 cents since 2018–19
- CISD has the 3rd lowest tax rate in the greater Houston area
Debt Service Considerations:
- Property value growth does help on the debt service side
- Mr. Rice is working with financial adviser Mr. Robuck on potentially:
- Selling the last tranche of bonds while interest rates remain relatively low
- Performing a cash defeasance of some existing debt
- A recommendation may come to the board at the next meeting
Revenue Estimates (2022–23)
| Source | Amount |
|--------|--------|
| Local revenue (compressed tax rate) | +$28.8 million |
| State funding decrease (Robin Hood/HB3) | -$28.8 million |
| State funding increase (1,750 new students) | +$26.2 million |
| Teacher Incentive Allotment (first year) | +$2.2 million |
| TRS in-kind (accounting entry) | +$1.75 million |
| Interest income increase | +$2.5 million |
| Total estimated new revenue | $32.65 million |
TASA/TASB Pay Plan Study
Presented by Jennifer Barton, TASB HR Services
- TASB conducts annual comprehensive salary surveys comparing CISD to its local market of peer districts
- Board member Mr. Hubert served as the board's liaison to the pay study process this year (unable to attend meeting)
Teacher Pay:
- At every surveyed experience point (0, 5, 10, 15, 20 years), CISD is above the market median — leading but not the highest in the market
- Smallest margin at 10-year mark ($500/1% above)
- Market typically shifts ~2% per year
Exempt Positions (Administrative/Professional):
- Administrative Business: 1% below market (structure), 3% below market (employee pay)
- Administrative Education: 3% above market (structure), 4% above (employee pay)
Non-Exempt/Hourly Positions:
- All groups at or above market for employee pay, midpoints, and starting pay
- TASB anticipates a dramatic market shift for hourly positions next year beyond the typical 2%
Police Compensation:
- Four benchmark jobs surveyed (officer, dispatcher, sergeant, lieutenant)
- Compared using both school district and non-school market data for the Houston metro area
TASB Recommendations:
1. Adopt proposed pay plans with adjustments (strong starting salaries, midpoints aligned with market, increased starting rates for hourly groups)
2. General pay increase model: $1,500 for teachers, 2% for non-teachers, $13/hour floor for all hourly groups
3. Additional adjustments to teacher pay structure years 1–6 to support $60,000 starting salary without compression
4. Additional individual pay adjustments (bring employees to at least minimum of range, educator career pathway premium of 2% above teacher daily rate, placement scales for nurses, special ed related services, hourly groups)
5. Continue annual review of compensation plan
Significant Board Discussion on Compensation:
- A board member questioned why retention stipends are not included in the market comparison data, noting that TASB only looks at base/TRS salary, not total compensation
- Concern expressed that without understanding total compensation (including stipends, insurance contributions, sick days), it's difficult to make fully informed competitive decisions
- Dr. Null acknowledged the concern and committed to compiling a total compensation comparison
- Other "hidden compensation" factors noted: monthly insurance contributions, number of sick/local days
- District added 3 additional local days this year (total of 5), with options to use, bank, or be paid for them
Retention Stipends (Proposed):
- $500 on October 1
- $1,000 on February 15
- Total cost: ~$10 million (funded through ESSER, not general fund)
- Can be adjusted based on budget and ADA performance
Reading Academy Stipend:
- Under consideration for teachers completing the state-mandated reading academy (~60 hours of uncompensated time outside school day)
- Would be a one-time stipend for completion in CISD
- To be brought to the board at the April 19 meeting
Staffing Allocation Changes
- PreK ratio: Changed from 22:1 to 19:1 (~$1 million cost)
- Grades 5–6 ratio: Changed from 26:1 to 25:1 (~$600,000 cost)
- 156 new teachers for Gordon Reed Elementary and enrollment growth ($10.9 million)
- 36 additional campus staff ($1.26 million)
- 10 new special education district support positions ($785,000)
- 1 police administrator
- 2 paraprofessionals
- Some auxiliary position reconciliation (reduced some over-allocated positions)
- Net new positions: 186 at a cost of $12.845 million
Expenditure Summary
| Item | Amount |
|------|--------|
| General pay increase | $13.3 million |
| Additional personnel | $12.85 million |
| Substitute pay increase | $300,000 |
| Teacher Incentive Allotment | $1.89 million |
| Retention stipend moved to ESSER | -$10 million |
| Utilities increase | $1.85 million |
| Other expenses (insurance, supplies, TIA) | $710,000 |
| TRS in-kind | $1.75 million |
| Total expenditure increase | $22.65 million |
Balanced Budget
- Estimated total revenue: $618.77 million
- Estimated total expenditures: $618.77 million
- Balanced budget
Fund Balance
- Projected unassigned fund balance: $180.6 million
- 25% target: $154.7 million
- $25.9 million available above target
2023–24 Pro Forma
- Shows a potential $11.8 million deficit — no current mechanism in the state funding formula provides funding for raises beyond the current formula
- Dr. Null has communicated to legislators that the funding structure now places the responsibility for future teacher raises on the legislature
Vacancy Concerns
- 60+ vacancies in child nutrition
- 60+ vacancies in custodial
- 63 teacher vacancies currently unfilled
- Board discussion on whether $13/hour minimum is sufficient; running the floor at $14 would cost an additional ~$3 million
- District noted it adjusted custodial pay mid-year in the past and could do so again if $13 proves insufficient
Health Plan / Benefits Update
Presented by Darren Rice
Current Plan Performance (2021–22)
- Total revenues: $31.4 million
- Total expenses: $33.7 million
- Revenues under expenses: ~$2.2 million
- Projected total plan year shortfall: ~$3.5 million
- High volume of high-dollar claims (over $50,000 each), driven by deferred elective surgeries
- Three claimants exceeded the $550,000 stop-loss threshold
Wellness Center
- Averaging only 347 visits/month
- Recommendation likely coming to close the wellness center (~$600,000/year cost; frees up 6 classrooms for instructional space)
- Virtual health options available at no cost to employees
Fund Balance
- Started 2020–21 at $6.78 million
- Projected end of year: $3.28 million
Blue Cross Blue Shield vs. United Healthcare
- United Healthcare renewal: 9.6% increase (~$5.2 million)
- Blue Cross Blue Shield (new): 5.3% calculated rate decrease (~$2.8 million savings)
- Difference: ~$8.2 million in cost avoidance (noted as equivalent to ~115 teacher positions)
BCBS Network Structure
| BCBS Plan | Comparable UHC Plan | Primary Hospital(s) |
|-----------|-------------------|---------------------|
| Blue Premiere (HMO) | Nexus | Memorial Hermann |
| Blue Essentials | Charter/Kelsey | Memorial Hermann, MD Anderson, Texas Children's, St. Luke's, Methodist |
| Blue Choice (PPO) | High Deductible | Wide open network |
Proposed Premium Changes (Employee Benefits Committee Approved)
Blue Premiere (replacing Nexus):
- Employee only: -$50/month
- Employee & spouse: -$68/month
- Employee & children: -$144/month
- Employee & family: -$156/month
Blue Essentials (replacing Charter):
- Employee only: -$4/month
- Employee & spouse: -$6/month
- Employee & children: -$4/month
- Employee & family: -$20/month
Blue Choice (High Deductible): No change
- Disruption estimated at ~1.4% (~200 employees may need to find new providers)
- Benefit plan design and premiums to be brought for board approval at the April 19 meeting
- District compares favorably with peer districts on both employee premiums and district contributions
Budget Timeline
| Date | Action |
|------|--------|
| April 5 (today) | Pay plan approval |
| April 19 | Benefit plan design approval; stipend approvals |
| June 7 | Board workshop (if necessary) |
| July 13 | Budget presentation to District Level Planning & Decision-Making Committee |
| July 19 | First public hearing |
| August 2 | First public hearing |
| August 16 | Second public hearing; budget and tax rate adoption |
PART 2: SPECIALLY CALLED BOARD MEETING (4:30 PM)
Invocation: Mr. Sanders
Pledges of Allegiance: Mr. Inman
Citizen Participation
- No citizens signed up to address the board.
Consent Agenda
- Item 3A — Approval of Minutes: Approved as presented.
- Vote: Passed unanimously (voice vote, no opposition noted)
Action Items
Item 4A — Consider Approval of 2022–2023 Teacher Hiring Schedule and Employee Pay Plan
- Mr. Rice presented the recommendation:
- $1,500 pay increase for all teachers
- 2% general pay increase (on midpoint) for all non-teacher staff
- Minimum starting hourly wage of $13/hour
- Starting teacher salary: $60,000
- Total teacher salary increase: ~$6.187 million
- Total non-teacher salary increase: ~$7.116 million
- Total cost: ~$13.3 million
- Motion made and seconded.
- Vote: Passed unanimously (show of hands, no opposition)
- Dr. Null thanked staff and noted this will be shared at the job fair on Saturday.
Item 5 & 6 — Executive Session: Not entered; items removed.
Item 7A — Non-Renewal Hearing for Teacher Sonia Trevino:
- Tabled — Mr. Trevino unable to attend; to be rescheduled pending notification.
Item 7B — Settlement Agreement (TEA Docket #230-SE):
- Motion to approve settlement and authorize superintendent to finalize negotiations and execute documents.
- Vote: Passed unanimously (show of hands, no opposition)
Adjournment
- Meeting adjourned at 4:35 PM.
Key Takeaways
1. Pay plan approved with $60,000 starting teacher salary, $1,500 across-the-board teacher raise, 2% for non-teachers, and $13/hour minimum — total cost ~$13.3 million
2. ESSER funds are being strategically deployed to avoid a funding cliff, with ~$65 million in ESSER III being spent through 2024
3. Property value increases (~15–29%) do not generate additional revenue for the district due to state funding compression — the state is the primary beneficiary
4. Switch to Blue Cross Blue Shield resulted in ~$8.2 million in cost avoidance compared to staying with United Healthcare, with employees seeing premium decreases
5. Significant hiring challenges persist, particularly for hourly positions (60+ custodial vacancies, 60+ child nutrition vacancies) and teachers (63 current vacancies)
6. Non-renewal hearing for Sonia Trevino tabled to a later date
7. District is exploring a limited virtual academy for grades 5–8 and plans to bring the proposal to the next board meeting
8. Board members requested more total compensation comparison data (including retention stipends, insurance contributions, leave days) for future decision-making