Dr. Penn, a district administrator, presented a preliminary 2025–26 budget Wednesday that projects roughly $431,000,000 in high-level expenses and a $68,000,000 increase from the current year, driven primarily by staffing and the opening of four new campuses.

The presentation matters because Prosper ISD is one of the fastest-growing districts in the state and the budgetary decisions will determine staffing, campus services and tax and debt-service planning ahead of formal adoption in August.

Dr. Penn said the district expects most of the increase in instruction, with about $40,000,000 of the total growth allocated to teachers and classroom resources. "The formula from the state is what drives our revenue, not so much the taxes," he said, describing recent changes in state funding rules and how they affect the district's revenue mix.

The presentation listed several legislative and formula changes staff said are already shaping the budget: an increase to the basic allotment by $55 per student, a new allotment of $106 per enrolled student to cover certain fixed costs, a $1,000 allotment for each initial special-education evaluation beginning next year, and an increase in the school safety allotment from $10 to $20 per student average daily attendance and a per-campus rise from $15,000 to $33,540. Dr. Penn noted those allotments change how the state directs funding and said officials will report back as state calculations are finalized.

State revenue is expected to account for a larger share of predicted revenue increases; the presentation projected about $45,000,000 more state revenue than the current year and said tax revenue growth will be smaller because of tax compression and expanded homestead exemptions. Staff cautioned those numbers could move as appraisal districts finalize certified values; Dr. Penn said certified values were expected later this month and that the Texas Education Agency will complete a certification process afterward.

On the expense side, staff presented an estimate of roughly 550 positions in the budget and cautioned that number could change before adoption. Much of the non-personnel increase is tied to opening new campuses: utilities, grounds and custodial contracts, additional transportation routes and licenses for instructional software. "The bulk of it is personnel, with a few supporting things," Dr. Penn said.

The presentation also addressed debt service tied to the district's recent bond sales and a remarketing to reset interest rates; staff said final closing numbers were pending and could modestly lower the projected expense side.

Dr. Penn and the finance team asked the board to review the materials and noted the district will return with updated figures and a proposed tax rate for adoption in August. "We'll know more, heading into August for that," he said.

Ending: The board received the preliminary budget as an informational presentation; staff will bring updated revenue and tax-rate figures, plus the formal budget for adoption, at subsequent meetings before the start of the school year.