Beyond the Bond: A balanced approach to the daily costs of education
We are in the people business. And the truth is, people cost money.
There’s no one more important to your child’s growth and learning than the classroom teacher.
Magnolia ISD recruits to find the best-qualified educators to create the magic that happens when great instruction is delivered in the classroom.
The fact is, however…
our students also need great administrators, counselors, nurses, librarians, cafeteria workers, bus drivers, and office support staff. And there are some students who need special services, too, like gifted and talented, Career & Technology Education (CTE) or special education services. To add to the expense, we also try to ensure your child has a well-rounded learning experience, so we also employ coaches, band directors, theater teachers, academic and club sponsors, and more.
We are in the people business.
Magnolia ISD’s $167.9 million operating budget is predominantly used to cover labor costs for employees. In fact, approximately 86% of the district’s budget is allocated to personnel costs, covering both salaries and benefits. This means when funding falls short, there is little to no capacity to make significant budget cuts without impacting positions and people.
Managing Debt for Growth
Paying down debt early has allowed MISD to save taxpayers on interest and created debt capacity for future growth. Since 2009, MISD has created a debt capacity of $90 million, paying off $53.4 million in principal, which saved $36.6 million in interest.
This approach allowed the May 2026 for $465 million bond to pass without changing the Interest and Sinking (I&S) or the debt side of the tax rate. The growth is funded with no tax rate increase.
Prioritizing Students & Staff
MISD’s focus on fiscal stewardship and maintaining a balanced budget allows us to prioritize the people side of the budget – Maintenance and Operations. Conservative enrollment projections and steady growth has allowed for retention and recruitment efforts.
For the 2026-27 year, the district has committed to the following to support our teachers:
- Pay based on loyalty, experience and closing the teacher pay gap:
- 0-10 years of experience = 3% (AVG $ increase of $1,883)
- 11-20 years of experience = 4% (AVG $ increase of $2,680)
- 21-25 years of experience = 5% (AVG $ increase of $3,649)
- 26+ years of experience = 6% (AVG $ increase of $4,665)
- 401(a) Loyalty Employee Match
- This retirement program aggressively rewards loyalty with MISD. Employees with 10 or more years qualify and are immediately vested.
- 10-15 years 2% match of salary
- 16-20 years 3% match of salary
- 21+ years 5% match of salary
- Increase in employer health contributions from $50 to $100 based on coverage.
- $500 one-time retention payment to all full-time employees