The McKinney ISD board of trustees unanimously approved a nearly $245.3 million operating budget for the 2020-21 school year during its June 23 meeting.

Factors for the newly approved budget include rising property values. The district is expecting the average property value in McKinney to increase by 4%, an indication of a strong economy, Chief Financial Officer Jason Bird said.

In addition, the district is preparing to close the books on the 2019-20 school year budget and is expecting to end the year with a surplus, Bird said.

“This puts us in an excellent position for the 2020-21 year,” he said.

For the upcoming school year, the district is expecting enrollment to decrease by 125 students, Bird said. The district is also taking into consideration school funding laws approved during the 2019 legislative session in House Bill 3.

The overall budget is composed of three parts the board must adopt annually: the general operating budget, the food service budget and the debt service budget.

In the district’s general operating budget, 80.5% of expenditures go to the district’s payroll, according to meeting documents. That includes a 5% pay raise for eligible employees and a 3% pay raise for other employees while also providing a midyear stipend of $500. Compensation for a starting teacher would be $57,350, Bird said.

The general operating budget of $245.3 million was built on an estimated maintenance and operations tax rate of $1.0547 per $100 property valuation. The official tax rate is expected to be approved in August after the board receives certified property values, Bird said.

The food service budget was approved for $11.9 million. The debt service budget was approved for $72.3 million with an estimated tax rate of $0.42 per $100 property valuation. This budget includes a debt service fund balance, which is necessary to pay an August bond interest payment.