McKinney ISD board approves 2026-27 budget with projected $6M shortfall

As a result, the district’s fund balance, which will sit at about $91.5 million at the beginning of the school year, is expected to see almost $6 million drawn out for an estimated ending fund balance of $85.6 million, according to Harbeson’s presentation.

Budget explained

The budget is broken down into three separate funds:

• General fund: accounts for local tax revenues and expenditures related to daily operations within the district
• Student nutrition fund: accounts for providing lunch and breakfast to students
• Debt service fund: accounts for principal and interest payments on the district’s general obligation bonds

The context

The district has seen budget shortfalls in recent years and has taken action to reduce expenses, including eliminating vacant positions, reorganizing central office positions, reducing central office budgets and other operational adjustments. The district has also pursued revenue-generating opportunities.

However, Superintendent Shawn Pratt said there are some policies in place to limit spending in areas such as travel, but said they’re “not sustainable policies.”

While board consideration is expected to come in August, district officials are currently proposing to decrease last year’s property tax rate, according to a staff presentation.

The 2025-26 rate totalled $1.1043 per $100 of assessed value, and officials are projecting the 2026-27 rate to be $1.0528 per $100 of assessed value, more than 5 cents lower.

“Historically, [McKinney], Frisco and Plano [ISDs] have typically been the lower three in Collin County; we surmise that we’re going to stay in that area,” said Dennis Womack, the district’s assistant superintendent of business operations, of the projected tax rate.

• Maintenance and operations rate: $0.7328
  • Used to fund daily operations and maintenance
• Interest and sinking rate: $0.3200
  • Used to fund debt obligations

“We have steadily been bringing the rate down since 2015, and we continue to do so,” Harbeson said of the interest and sinking rate.

Final action on the tax rate is expected in August after the district receives certified values from the Collin County Central Appraisal District and the maximum compressed tax rate set by the Texas Education Agency.