Prosper ISD adopts 2025–26 budget and a 1.2141 tax rate; board cites growth, recapture and personnel costs

The Prosper Independent School District board of trustees on Aug. 25 approved the 202526 annual budget and set the district2025property tax rate at 1.2141, a motion the board characterized as effectively a 2.66% rate increase under state reporting rules.

The vote to approve the annual budget passed unanimously with six trustees voting in favor. "I move that the board approve the 2025 2026 Prosper ISD annual budget as presented by administration," Trustee Kelly Cavender said when making the motion; Trustee Tommy Van Wolf seconded. The tax-rate motion was made by Board President Bill Beavers and seconded by Trustee Dina Dixon; the board again voted 66.

Why it matters: trustees and administrators said the budget reflects fast enrollment growth and rising personnel costs and must account for state recapture (sometimes called "Robin Hood") that returns local tax revenue to the state. Mrs. Croix, a business-office presenter for the district, told trustees the district sent $1,400,000 in recapture this year and expects to send about $1,600,000 next year. She also described that roughly 80% of the general fund is allocated to personnel.

In her presentation, Mrs. Croix summarized how state and local funding interact and why the published tax-rate language can appear confusing. "No new revenue is a district's tax rate that keeps the money per student the same as the previous year," she said. She explained the district's adopted tax rate shows locally as 1.2141 while the previously adopted 202425 rate was 1.2552.

The administration told the board it expects revenue increases tied to state funding that flows for teacher pay raises this year, while some local revenue categories have declined (facility rentals, miscellaneous receipts). Mrs. Croix also said the district plans to set aside roughly $12,000,000 into reserves this year, down from the $15,500,000 deficit the district adopted at the same point last year.

Trustees emphasized the continued focus on staffing and safety. Superintendent Dr. Ferguson told trustees new schools and the opening of four campuses drove significant staffing increases: "When you add four schools, you're putting four more principals out there, you're putting more assistant principals out there. You're adding counselors," she said during budget discussion.

Formal outcome: the board approved the 202526 annual budget (motion: Kelly Cavender; second: Tommy Van Wolf) and adopted the property tax rate of 1.2141 (motion: Bill Beavers; second: Dina Dixon). Both measures passed unanimously.

What's next: administrators said the budget will continue to be monitored and adjusted during the year. Several trustees and staff reiterated that the adopted figures are a point-in-time decision and that the district will pursue cost savings and monitor average daily attendance, which affects state funding.