The Bentonville School District Board of Education approved a 3.5% salary increase for all teachers and staff starting in the 2025-26 school year. Most staff will also receive a regularly scheduled step increase of about 1.3%, so many educators will see an approximately 4.8% increase in pay next school year.

The district’s long-term budget had included the step raises for staff, but Deputy Superintendent Janet Schwanhausser said that is not sufficient to keep up with the rising cost of living. Bentonville home prices are up 16.3% over 2024 and the USDA predicts grocery prices will increase by 3.4% in 2025, she told the Board.

“Those same real estate values that cause greater cost to our employees also bring the district greater revenue,” she said.

The increase in property values is expected to bring an $8.9 million increase in tax revenue, Schwanhausser said. The 3.5% salary raise amounts to 74% of the tax revenue increase, which is the typical percent of operating funds that go toward salary and benefits. 

Increased Utility Costs

The district chose to allocate 74% of the increased revenue for raises instead of using 100% due to uncertainties around rising utility costs and potential changes in state legislation that could increase operating expenses, Schwanhausser said. 

She told the Board that the City of Bentonville’s water rate increases mean the district will spend around $220,000 more on water for a full school year. While the City has not determined rate increases on sewer and electricity yet, those rates are also predicted to go up.

“My biggest concern is what’s going to happen with electricity,” she said.

Potential rate increases discussed on electricity are around 4–8%. At 8%, the district would see around a $737,000 increase in its electricity bill, Schwanhausser said. 

Board Rejects Offer to Sell Property

The Board rejected an offer from Skylight Homes to purchase district-owned property on Bright Road. The offer was to purchase 40 acres at $120,000 per acre for a total of $4.8 million, or 80 acres at $100,000 per acre for a total of $8 million.

The district purchased approximately 239 acres of land in the area in 2008. Since the property is financed with tax-exempt debt, the district would need to declare that it no longer requires the property for future growth. The district has considered this property as a potential site for a third high school, according to Schwanhausser. 

Junior High Grading Policy to Change Next School Year

The district’s junior high grading policy will be changed to align with the high school’s grading policy starting next year.

The current junior high grading policy is “confusing and sometimes very inconsistent across classrooms within one building or from building to building within the district,” said Kelly Boortz, executive director of middle-level education.

Current educational research supports the change, and it will provide better alignment for high school credit courses that are offered in junior high, which are expected to increase, Boortz said.

Boortz told the Board that 93% of teachers surveyed were in support of the change. 

The discussion began in February, when a committee of administrators, teachers and parents was formed to review the proposal. Professional development will be conducted in April to train staff on the new junior high grading policy.