Magnolia ISD's focus on fiscal stewardship and maintaining a balanced budget allows the district to prioritize the 'people' side of our budget--Maintenance and Operations. Thanks to steady student growth and conservative enrollment projections, MISD can allocate $4.5 million specifically for staff compensation and benefits—a move made possible by our operational health, independent of bond funding.

2026-27 Employee Pay Raises Approved

The Board approved a minimum pay raise of 3% for all employees. With the strategy of continuing to honor loyalty, experience, and closing the teacher pay gap, the teacher pay raises are as follows:

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)

Additionally, all full-time employees will receive a one-time retention payment of $500 on the September 15 payroll.

Also, the Board approved a $2/hour increase for custodial to close the pay gap. This is made possible by a new campus-tiered model that eliminates night crews and a third-party cleaning service, and closes up to 23 unfilled jobs.

401(a) Loyal Employee Matching Program

During the budget workshop last week, the Board reviewed a 401(a) retirement program that aggressively rewards loyalty with Magnolia ISD. Employees with 10 or more years with MISD qualify for the program and are immediately vested.

Employees who qualify will be able to start in September 2026. A few of the plan contributions include:

• Compensation is defined as base salary, excluding stipends or other forms of compensation.
• 10 years is determined on September 1 of each year.
• Years do not have to be consecutive--if an employee leaves and returns to MISD, service years from prior employment periods will be combined.
• The plan requires that the employee be employed on August 31 each year to receive or keep that year's district contribution.
• Contributions will be made semi-annually (February and August).

The contribution formulas are indicated in the chart (starting at 2% and up to 5% matching). More information about the program will be available, including presentations at this year's Employee Benefits Fair. Save the date for July 17.

MISD Years of Service	MISD Employer Match (up to)	$25K Annual Salary	$50K Annual Salary	$100K Annual Salary
10-15 years	2%	$500	$1,000	$2,000
16-20 years	3%	$750	$1,500	$3,000
21+ years	5%	$1,250	$2,500	$5,000

2026-27 Increase in Employer Health Contributions

As part of the budget workshop, administration presented a tiered employer contribution approach for the 2026-27 year. The district currently contributes $350 towards employees who opt in for the district health insurance.

The Board approved a tiered approach that increases the MISD employer health insurance contribution from $50 to $100 a month, based on coverage type.

Coverage Type	New District Contribution	Monthly Increase
Employee Only	$400	+$100
Employee/Spouse	$450	+$100
Employee/Child	$425	+$75
Family	$450	+$100