During the August 24 special board meeting, the Board approved the district tax rate and adopted the 2026-27 balanced budget, with a strategy to continue closing the teacher pay gap and reward loyalty to Magnolia ISD.

Lowest Tax Rate in Montgomery County

The Board approved a 2.6-cent decrease in the ISD tax rate to $0.9325. This is the lowest tax rate in over 20 years and the lowest ISD tax in Montgomery County. 

Employee Compensation

Assistant Superintendent Dr. Erich Morris also presented a balanced 2026-2027 school year budget. The balanced budget includes a minimum 3% raise for all employees, along with the continued strategy of honoring loyalty and 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)

Additionally, all full-time employees will receive a one-time retention payment of $500 on the September 15 payroll. The Board also approved a $2-per-hour increase for custodial staff to close the pay gap.

This year, the district increased the employer health insurance contribution from $50 to $100 per month (based on coverage). 

Part of the compensation also includes a 401(a) employer-sponsored retirement plan.  Employees who have been in the district more than 10 years qualify for an employer match. 

• 10-15 years 2% match of annual salary
• 16-20 years 3% match of annual salary
• 21+ years 5% match of annual salary

As a reminder, voters approved a $465 million bond to address growth in Magnolia ISD in May 2026, without increasing the tax rate.