With an expected decline in enrollment and increasing property values, Plano ISD officials expect a multimillion revenue shortfall in the 2025-26 school year.

District staff and the board of trustees discussed next year’s school budget during an April 8 meeting. The board previously discussed budget development in January.

By the numbers

Projections for the FY 2025-26 budget, as of April 8, include
  • $681.52 million in revenue
  • $557.90 million in expenditures
  • $144.47 million for the district's recapture payment
  • $27.5 million shortfall
PISD’s student enrollment is expected to decline by 877 students—a 1.9% decrease—which will lower the district’s revenue, Chief Financial Officer Courtney Reeves said during the meeting.
The district’s 2025-26 recapture payment, a funding mechanism intended to balance the needs of school districts across the state, is expected to be $6.65 million higher than FY 2024-25’s payment, Reeves said. The projected recapture payments considers a 4% growth in property values, according to the Collin Appraisal District.

A preliminary tax rate of $1.0333 per $100 of assessed value for FY 2025-26 was also presented to the board.
What else?


District officials are considering a 3% raise for teachers in the 2025-26 school year, Chief of Employee Services Duana Kindle said. The district may also increase the starting salary for news teachers with 0 years of experience to $62,200—a $1,200 increase from last year’s starting salary.

Looking ahead

No action was taken on the budget, tax rate or compensation plans. A public hearing and adoption of the budget is expected in June and trustees are expected to adopt the tax rate in August.