Prosper ISD may be facing a multimillion-dollar shortfall in the fiscal year 2025-26 budget, according to preliminary budget totals.

Historically, about $10 million of projected expenses are not spent by the district, said Kyle Penn, PISD’s deputy superintendent of district and employee services, during a June 13 board meeting. While estimated revenue and expense totals show a $45 million difference, district officials are projecting the shortfall in the 2025-26 school year to be approximately $39 million.

“We know there’s some challenges with that and we’ve taken steps already ... to begin working on [the shortfall],” Penn said.

The overview

Here is a breakdown of the preliminary budget:
  • $390.94 million in revenue
  • $436.73 million in expenditures
The majority of PISD’s budget goes toward payroll. Payroll is 81% of the total budget at $351.72 million—a $57.7 million increase from the 2024-25 school year. Board members approved various teacher and staff pay raises during the June meeting.


Nonpayroll budget expenses, which account for 19% of the budget, have increased by $16.3 million from last year.

PISD officials are anticipating a growth of 2,500 students in the 2025-26 school year. Due to the district’s fast growth, PISD is expected to receive an allotment of $34 million to cover rising costs, Penn said.

An additional 566 positions were added to the district since the 2024-25 school year budget was adopted, Penn said. Approximately $50 million has gone toward new employees and staff raises. PISD is opening four new campuses in the 2025-26 school year, including:
  • Jana Thomson Elementary School, PISD’s 19th elementary campus
  • Virgie Smothermon Elementary School, PISD’s 20th elementary campus
  • Pete Moseley Middle School, PISD’s sixth middle school
  • Richland High School, PISD’s fourth high school
Non-personnel expenses that are higher due to the new schools include technology, fine arts and athletics programming, utilities and landscaping, property insurance and purchasing and setting up portables, among other costs.

One more thing


District officials expect the FY 2025-26 tax rate to be $1.2376 per $100 of assessed property value.

This is split between $0.7376 for maintenance and operations, which covers daily costs such as payroll, and $0.50 that will go toward paying off the district’s debt and interests.
Looking ahead

District officials expect to adopt the FY 2025-26 budget and tax rate in August.