Plano ISD is set to hold a public hearing on its proposed tax rate and budget for the 2025-26 school year June 24, according to an update from district Chief Financial Officer Courtney Reeves.

What you need to know

The district is anticipating a $32 million budget deficit in the 2025-26 school year, Reeves told PISD’s board of trustees during its May 20 meeting.

Projections for the FY 2025-26 budget, as of May 27, include the following:

• $685.08 million in revenue
• $562.25 million in expenditures
• $154.12 million for the district's recapture payment

Recapture redistributes property tax dollars from property-wealthy districts to those the state deems property poor.

PISD was previously projected to see a 4% growth in property values, but is now expecting a 2.8% increase, according to the presentation.

PISD adopted a budget projecting a $35 million deficit for 2024-25, and will actually end the fiscal year with a $10 million shortfall, according to district documents.

Reeves noted that the current budget projections could still be impacted by pending state legislation.

What else

The current proposed tax rate is $1.03965 per $100 of assessed value for FY 2025-26, down from $1.04245 in 2024-25.

While the tax rate is decreasing, the average taxable value of a home in Plano is projected to increase from $450,000 to almost $489,000, Reeves said.

What’s next

The district’s board of trustees is expected to adopt the budget on June 24 at the same meeting as the public hearing. The school board is expected to adopt the tax rate during its Aug. 19 meeting.