Allen ISD officials are nearing the finish line for approving the 2026-27 school year budget with one more factor to consider in May.
What’s happening?
Officials intend to bring a 2% compensation increase for district staff to the Allen ISD board of trustees for consideration at a May 11 workshop meeting, said Kyle Penn, assistant superintendent of business and technology. That will be the last “big determining factor” for the upcoming school year budget, he said.
Penn presented another budget update during an April 27 board meeting. Board Vice President Bill Parker said he would like to see how a 2% increase and a 2.5% increase would affect the budget. He said he would like it if the board came prepared for action at its May 11 workshop.
“It’s important that our teachers, before they go on break, have an idea of what their compensation package for next year is going to look like,” Parker said.
A closer look
Allen ISD officials are currently projecting $221.3 million in revenue and $224.5 million in expenses, according to Penn’s presentation. That picture can change after board members discuss and act on any potential compensation increases in May, however.
“Our expense side right now is sitting at $224.5 million as is with no adjustments to compensation,” Penn said.
Expenses typically increase by $1.5 million for every 1% increase in compensation, according to Penn’s presentation.
The district does have access to supplemental funds that can be transferred into the budget if needed, he said. In previous years, Allen ISD has “historically” underspent on expenses as well.
“We’ll have conservative projected variances on the expense side of savings,” Penn said. “Meaning we don’t ever spend every dollar, every position is not filled all year and we normally save a significant amount on the expense side.”
District officials are currently projecting an $850,000 reduction to the fund balance at the end of the next school year. That could be covered by savings from this current year’s budget, though, Penn said.
“We’re doing as much as we can to help level this thing out,” he said.
Another detail
The district can control expenses a lot easier than revenue, Penn said. Revenue is driven by student enrollment, which is projected to continue declining at Allen ISD over the next six years.
Personnel costs are the district’s largest, and officials are looking at adjusting and absorbing positions, Penn said.
“One of the things I just want to highlight is everyone that is in Allen ISD will continue to have a job even through those restructures,” he said. “We’ve not been in a spot where somebody is out of a role.”
District officials are also considering inflationary pressures for nonpersonnel costs such as fuel and property insurance, Penn said.
Looking ahead
The board is expected to consider compensation increases at a May 11 workshop meeting. District officials then expect to present a finished budget to the board during a May 26 meeting.
A public notice about the budget will be posted in June prior to board consideration and approval, Penn said. Tax rate adoption is expected to come in August after the district receives certified taxable values from the Collin Central Appraisal District.
Parker said he was proud of the job that district officials have done regarding the budget.
“We don’t have a lot of control on the revenues but we do a really good job on the expenses,” he said.
