McKinney ISD adopts 2025–26 budget, approves districtwide pay plan under state law

The McKinney Independent School District Board of Trustees on June 23 adopted the district's 2025'26 general operating and debt service budgets and approved a compensation plan that applies teacher pay increases tied to House Bill 2 alongside district-funded supplements for other staff.

District leaders told the board the adopted budget is based on pre'HB2 figures and that the district will bring an amended budget in August after the Texas Education Agency issues final guidance. The board also approved a compensation package labeled Option C that combines HB2 pass'through amounts for experienced teachers with across'the'board raises for other employees.

Administrators said the budget adoption is intended to preserve fiscal stability while giving the district time to incorporate HB2'related revenues and rules. Dennis Womack, assistant superintendent for business operations, walked trustees through projected property values, estimated recapture and a $266 million estimated expense budget for the coming year. He and CFO Marlene Harbison said the adopted budget assumes 23,500 students and estimates a mid'year draw on fund balance that the district expects to lower when state compensation and other HB2 details are finalized.

Womack said the district currently projects a roughly $7.5 million reduction to fund balance based on pre'HB2 estimates; administrators expect that figure to shrink after the August budget amendment. He also said the district's estimated recapture (the payment commonly referred to as purchasing attendance credits) is about $8.8 million, but the final recapture will be calculated after the year ends.

On compensation, the board considered three options. All three apply HB2'mandated pass'through amounts for teachers with three to four years of experience ($2,500) and five or more years ($5,000). Option C, which the board approved, added a 3% raise for most staff groups and a 4% midpoint increase for paraprofessionals and auxiliary/maintenance staff; administrators said the package would be funded partly by HB2 allocations and partly from district reserves. Administration recommended Option C as the most competitive approach to retain teachers, counselors, nurses and support staff.

Trustees debated the fiscal tradeoffs before voting. Several trustees said they preferred the broader coverage of Option C to avoid leaving librarians, counselors and paraprofessionals behind. Board President Amy Dankel said cuts adopted earlier were difficult but that the district could revisit restored positions in future budget amendments. The motion to adopt the 2025'26 operating, debt and food service budgets and to approve Option C for compensation passed without an on'record roll call tally in the minutes.

Administrators repeatedly cautioned trustees that some HB2 provisions remain dependent on TEA rules and that certain allotments and reimbursements will not take effect until later years. Womack highlighted the new allotment for basic cost (ABC) tied to average daily attendance and changes to special education funding that begin in 2026'27.

The board approved the budgets and compensation plan in a single set of motions so the district can proceed with payroll and summer hiring while staff prepare the August amendment that will incorporate final HB2 numbers.

Ending: District leaders said they will return with detailed amendments and an updated financial package once TEA publishes final guidance and PEIMS submissions are reconciled. Trustees scheduled additional budget discussion as part of the August meeting cycle.