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Prosper ISD administrators present near‑final 2026–27 budget showing $18.7M preliminary deficit
Summary
Administrators told trustees the district is looking at a near‑final $18.7 million deficit for 2026–27, noted a one‑time $3.8 million improvement tied to fiscal‑year transition and warned of state recapture ("Robin Hood") that could require sending roughly $1.57 million this year and an estimated $3 million next year back to Austin.
Prosper ISD administrators on May 18 presented a near‑final view of the district’s 2026–27 budget and laid out multi‑year risks tied to state funding rules and local property‑value growth.
The budget presenter summarized that the district expects to send roughly $1,570,000 in excess local revenue back to the state for the current year and anticipates sending about $3,000,000 for 2026–27, a function of property‑value growth and state recapture rules. The administration characterized the current 2026–27 numbers as "near final" and said they will change when the district receives certified property values and finalized enrollment counts.
The presentation noted a one‑time accounting benefit from transitioning the fiscal year that produced an estimated $3,800,000 improvement; even with that one‑time gain, the administration said the near‑final summary shows a projected $18,700,000 deficit. Personnel costs remain the largest budget driver at roughly 84% of expenditures, and the district plans a 3% compensation increase that will raise personnel costs by about $6.2 million compared with the current year.
Administrators identified several mitigation steps already taken, including delaying the opening of Watkins Middle School (saving roughly $10 million in staffing costs) and cutting $3.2 million from department budgets. They warned that certain state allotments the district has relied on, including fast‑growth and facility allotments, are likely to decline and urged trustees to advocate at the state level for continued support.
Trustees discussed funding mechanics — the difference between enrollment‑based funding and Texas’ average‑daily‑attendance system — and urged community advocacy for continued fast‑growth allotment funding. Administration said the numbers will be refined at the June and August meetings when certified values and final enrollment are available.
The budget presentation did not include a final adopted tax rate or final amended numbers; board members asked for continued updates and expressed concern about multi‑year implications.
