The Montgomery ISD Board of Trustees approved a balanced operating budget for the 2026-27 school year during its regular meeting on June 23, 2026.
The adopted operating budget totals approximately $108.9 M and reflects the district’s continued commitment to responsible financial stewardship while strategically investing in students and staff.
Key highlights of the 2026-27 budget include:
- A balanced operating budget for the upcoming fiscal year
- A $2.4 million ongoing investment in employee compensation
- Approximately $220,000 in market-based stipend and salary adjustments for hard-to-staff special education positions
- Nearly $1 million allocated for new positions supporting special education, classroom instruction and employee recruitment and retention efforts
The budget includes the following new positions to address identified needs in the Special Education and Teaching and Learning Departments:
- Additional assistant principals at Montgomery Junior High and Montgomery and Creekside elementary schools
- Four special education teachers and eight special education paraprofessionals
- A K-12 science coordinator
- A speech language pathologist
A major investment included in the budget is the compensation plan approved by the Board in April. The compensation plan for 2026-27 includes a $2,100 increase for teachers and employees on the teacher hiring schedule, as well as a 3% salary increase for all other eligible employees based on the midpoint of their pay grade.
The 2026-27 budget also reflects the significant progress Montgomery ISD has made in strengthening its financial position over the past two years. Prior to the 2024-25 school year, the district was facing a projected $4.3 million budget deficit. Through strong financial management and the community’s support of Proposition A in November 2024, Montgomery ISD has not only maintained balanced budgets but has also delivered on the commitments made to voters during the Prop A process.
Since the passage of Prop A, the district has invested more than $5 million in ongoing employee compensation increases, resulting in salary increases ranging from 7% to 12%. In addition, full-time employees have received a combined $2,500 in one-time stipends. The district has also expanded support in critical need areas, including special education, school safety, and student services, while continuing to maintain strong financial stability.
Superintendent Dr. Mark Ruffin said the adopted budget reflects the district’s continued commitment to supporting the people who make the biggest difference for students every day.
“Our people are a huge part of what makes Montgomery ISD special, and this budget reflects our commitment to continuing to invest in them,” Dr. Ruffin said. “Every day, our teachers, paraprofessionals, bus drivers, custodians, counselors, cafeteria teams, and support staff show up for kids in meaningful ways. We want our employees to feel valued and supported because when we take care of our people, our students benefit. This budget allows us to continue strengthening student support systems, investing in key academic areas, and making sure Montgomery ISD remains a place where families want to be and great educators want to work.”
Board President Eddie Winn said the Board remained focused throughout the budget process on balancing strategic investments with responsible financial stewardship.
“Our Board understands the importance of maintaining the trust our taxpayers place in us,” Winn said. “We take seriously the responsibility of managing district finances in a way that is thoughtful, transparent, and focused on what’s best for students. This budget allows us to invest in our employees and address important needs across the district while also maintaining strong financial stability. At the end of the day, we want every dollar invested to have a positive impact on students and help continue moving Montgomery ISD forward as a premier school district our community can be proud of.”
Montgomery ISD continues to operate on a July 1 through June 30 fiscal year calendar.
The district’s ability to honor its commitments to voters, invest in employees, expand student support services, and maintain balanced budgets demonstrates Montgomery ISD’s commitment to responsible stewardship of taxpayer resources and its continued pursuit of being a premier school district for students, staff, and the community.
Employee Healthcare Benefits Update
The Board also received an update from Higginbotham, the district’s third-party health insurance benefits broker, regarding the district’s healthcare benefits package for the upcoming 2026-27 school year. Representatives from Higginbotham shared that the district’s health insurance premiums will increase beginning next year, reflecting continued cost pressures impacting employer-sponsored healthcare plans across Texas and the nation.
Each year, Montgomery ISD works diligently to provide employees with comprehensive healthcare benefits while minimizing the financial impact of rising healthcare costs. District leaders routinely evaluate available options and collaborate with benefits consultants to balance quality coverage with affordability for employees and their families.
Last year, the Montgomery ISD Board of Trustees approved an increase in the district’s monthly contribution toward employee healthcare premiums from $370 to $400 per month, representing an annual district contribution of $4,800 per employee. The increased contribution was designed to help offset rising healthcare costs and provide additional support for employees and their families.
“Rising healthcare costs continue to be a serious challenge facing public education,” Dr. Ruffin said. “School districts across Texas are experiencing substantial increases in insurance costs, which places additional pressure on already strained budgets. As we look ahead to the 2027 legislative session, I look forward to working with our state legislators and education leaders to explore solutions that help make healthcare coverage more affordable and sustainable for school employees. Our teachers and staff deserve access to quality healthcare benefits, and this is an issue that requires continued attention at the state level.”
District administrators will continue working with Higginbotham and the district’s insurance providers to communicate plan details, available coverage options, and enrollment information to employees prior to the start of the new plan year.
Student Recognitions
Trustees celebrated the Lake Creek Softball team that secured the UIL Class 5A Division II state championship in May. The team finished the year with an impressive 40-1 record. This is the fourth state championship in program history, having earned the title in 2022, 2023 and 2025. Since the school began varsity play in 2019, the Lions are 268-23 and a fixture at the state tournament in Austin.
“This state championship is a testament to the character, resilience, and composure of this incredible team,” Board Vice President Paul Cameron said. “After facing an early deficit, they never lost confidence, never panicked, and stayed committed to their game plan. They trusted one another, and executed when it mattered most. That kind of determination and poise under pressure is what champions are made of. We are incredibly proud of these athletes and coaches for representing Lake Creek High School and Montgomery ISD with excellence on the biggest stage.”
Trustees also recognized the Lake Creek Baseball team, runners-up in the UIL Class 5A Division I State Championship earlier this month. Facing off against defending champions Aledo, the Lions endured nearly three hours of weather delays during the championship. Lake Creek (26-18) was making the program’s first appearance in a state title game after winning four elimination games in the previous two rounds.
“Congratulations to the Lions on an outstanding baseball season and an impressive postseason run,” Trustee Shawn Denison said. “Reaching the state finals for the first time in program history is a remarkable accomplishment and reflects the determination and character of this group. From overcoming a challenging start to the season to battling through the playoffs and earning a spot in the championship game, these student-athletes made Lake Creek High School and our Montgomery ISD community proud. We congratulate the student-athletes and coaching staff for an outstanding season.”
Finally, trustees acknowledged the Lake Creek Clay Target Team, recently named the USA High School Clay Target League Texas High School State Champions. The group finished first place in the conference for the 2026 season, with several students claiming individual awards in the sporting clay, trap, skeet and 5-stand divisions.
“The success of the Lake Creek Clay Target Team is a wonderful example of what can happen when students are given opportunities to pursue their passions and develop their talents,” Trustee Nate Robb said. “ In just a few short years, this program has grown from a small group of dedicated students into a nationally recognized team that competes with some of the best programs in the country. We are proud of the way these students represent Lake Creek High School through their hard work, sportsmanship, and commitment to excellence. We congratulate the student-athletes, sponsors and the Lake Creek families who have helped make this program such a success.”
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