Plano ISD Faces $43.75 Million Budget Shortfall for Next Fiscal Year
Plano Independent School District (ISD) is facing a significant budget shortfall of $43.75 million for the upcoming fiscal year 2026-27.
Budget Overview
The district’s Chief Financial Officer, Courtney Reeves, provided an early budget forecast during a board meeting on January 20. According to preliminary estimates, Plano ISD is projected to generate approximately $527.3 million in revenue while expenditures are set to reach $571.05 million.
Revenue and Enrollment Trends
Although the district anticipates an increase in local property tax revenue due to rising property values, the net revenue projection still reflects a decline of $7.23 million compared to the previous year. The decrease is primarily attributed to a drop in student enrollment and a one-time property sale from closed campuses that took place in fiscal year 2025-26.
- Peak Enrollment: 55,659 (2011-12 school year)
- Current Enrollment (as of October): 43,838
- Projected Enrollment for Next Year: 41,830
Since reaching its peak in the 2011-12 school year, Plano ISD’s enrollment has consistently declined. This trend raises concerns about future funding and program viability.
Recapture Payments
Plano ISD is also anticipated to face a recapture bill of $124.07 million, an increase of $15.97 million compared to fiscal year 2025-26. The recapture program redistributes property tax revenues from districts identified as property-rich to those deemed property-poor, further impacting the district’s financial situation.
Next Steps for Plano ISD
The district plans to finalize its compensation plan and departmental budgets by March and April, respectively. The board is scheduled to adopt the final budget for fiscal year 2026-27 in June, with the tax rate set to be approved in August.
As Plano ISD navigates this fiscal challenge, careful planning and community engagement will be essential to address the budget shortfall and ensure quality education for students.
