Prosper ISD adopts 2026–27 annual budget with $25 million projected deficit; board votes 7–0

The Prosper ISD Board of Trustees on Tuesday approved the district's 2026–27 annual budget as presented by administration, voting 7'0to'00 to adopt a plan that administrators said will start the fiscal year with a projected $25 million deficit.

Ms. Corey, the district's finance presenter, told the board the near-final budget covers three main funds: the general fund (199), debt service (bond fund) and child nutrition. She said the district had adopted a $29 million deficit last August for the prior year but expects to return about $3.8 million to fund balance due to cost savings. For 2026'27 she described an anticipated additional ~$10 million in revenue but recommended adopting a plan that still shows a $25 million deficit as a conservative, "worst-case" projection.

The budget presentation emphasized measures the district has taken to reduce costs, including delaying new school openings, changing staffing models, pausing some capital projects and negotiating partnerships to lower utility expenses. Ms. Corey noted fixed-cost increases ' including property insurance, liability and utilities ' that drove a portion of projected expense growth and said employees received a 3% raise. She also reported a districtwide budget total presented to trustees of roughly $433 million and that personnel will account for an estimated 80% of expenditures.

Trustees asked detailed questions about the fast-growth (NIFA) allotment that helps fund new campuses and whether that funding is ongoing. Ms. Corey said the allotment is recognized through the summary of finance and is tiered by growth relative to other districts; she warned the allotment depends on state legislation and said there is at least a rumor it could be discontinued, a development that would reduce projected revenue.

Board members also pressed on whether the $25 million projection can be reduced. Ms. Corey described the number as a conservative budget scenario "if every position is filled every single day" and said district leadership had already spent substantial time identifying further reductions; she said the goal is to reduce the deficit before the fiscal year begins and that the administration will return with finalized audit numbers in November.

Votes at a glance

- Consent agenda (routine items): approved, motion passed 7'0'0to'''0. - 2026'27 annual budget (as presented): approved, motion passed 7'0to''. - Hiring of contract personnel (post-closed-session action): approved, vote 7'0to''. - Level-three employee grievance (post-closed-session action): board moved to deny the complaint, motion passed 7'0to''. - Resolution authorizing sale of real property (item 13B): tabled until next month.

What trustees and staff said

"We did adopt a $29 million deficit last August," Ms. Corey said, "and due to some fiscal changes and cost savings we anticipate putting $3.8 million back into fund balance this year." She summarized the district's approach: "Delaying new schools is one of our largest cost savings measures ... changing staffing models has also helped ... and we honored our staff with a 3% raise."

Board President Kelly Cavender thanked staff for the budget work and noted the board's expectation that administration will continue seeking reductions: "You'll be hearing more about what we were doing to make sure we stay in good financial standing," a trustee said during the motion discussion.

Why it matters

Prosper ISD is a fast-growth district whose revenue mix depends heavily on local property taxes and state funding formulas. The budget outlook will shape classroom staffing, timing of planned facilities and the district's ability to respond to enrollment fluctuations and recapture rules that send excess tax revenue back to the state. Administrators said they plan additional budget amendments after certified property values and tax-compression effects are finalized.

Next steps

Trustees adopted the budget at the meeting and will hold a tax-rate hearing in August; Ms. Corey said finalized audit numbers will be presented in November and that administration will continue to pursue reductions to minimize the projected deficit.

Sources: presentation and Q&A during the June 16, 2026 Prosper ISD Board of Trustees meeting; board roll-call votes recorded in the meeting minutes.