During a public meeting on Monday, the North East ISD Board of Trustees approved the 2009-2010 general fund budget with two compensation scenarios, one that freezes salaries and another that provides pay increases. The district estimates total revenue to be $487.8 million and total expenditures to be $487.9 million.

"We worked this year to reduce our expenditures and committed to present a break-even budget for 2009-2010," said Richard A. Middleton, superintendent of schools. "Our staff delivered on that promise to our board and taxpayers."

The board approved the district's 2009-2010 compensation plan that freezes salaries, except for the state mandated salary step increase for teachers and librarians. While House Bill 3646 includes a salary increase for teachers, librarians, nurses, counselors and speech pathologist, the state earmarked American Recovery and Reinvestment (ARRA) funds – also known as stimulus funds – to pay for this pay raise. The state must now receive approval from the Department of Education (DOE) to use ARRA funds for this purpose.

Since there is current debate over whether stimulus funds can be used for salary increases, NEISD's board adopted a resolution to provide a pay raise only if the DOE approves the state's plan. A pay increase of $937 plus salary step for teachers and librarians and 2.87 percent on midpoint for professional/administrative and classified staff would be paid retroactively to July 1, 2009.

"The district was conservative in presenting its compensation plan," said Wessley Robinson, chief financial officer and associate superintendent. "Our employees deserve a pay raise, but we don't have local money to provide one. We chose to wait until the DOE approves the state's plan before promising an increase to employees."

On June 15, the board also approved the debt service fund and school nutrition services fund budgets. Under these funds, the district will maintain cafeteria tray prices and does not expect to increase the tax rate.