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Plano ISD projects $44.8 million deficit; officials outline use of fund balance and program adjustments
Summary
CFO Courtney Reeves told the board the district projects a $44.8 million shortfall for 2026–27 driven by declining enrollment and increased recapture; staff said the deficit will be managed using fund balance, attrition, service consolidations and one‑time property sales.
Plano ISD officials told the board on May 5 that the district projects a budget deficit of approximately $44,800,000 for the 2026–27 fiscal year, driven by declining enrollment and a growing recapture obligation to the state.
"The District is projecting a budget deficit of approximately $44,800,000," CFO Courtney Reeves said during a departmental budget presentation that also showed proposed department budgets totaling about $86,700,000. Reeves said revenues net of recapture are projected at about $517,100,000 and that the district reduced preliminary department requests from $92.3 million to the current proposal through 0‑based budgeting and a three‑year trend analysis.
Trustees pressed staff on how the shortfall would be covered. Deputy Superintendent Johnny Hill said the district has an undesignated fund balance that can be used for shortfalls and cash flow: "we have built up over time a fund balance of approximately $276,000,000," he said, adding that the district must maintain reserves for cash flow and policy requirements. Hill and Reeves said management strategies include attrition and careful review of central and auxiliary positions, targeted reductions in nonpayroll areas, right‑sizing facilities and planned one‑time proceeds from surplus property sales to help bridge gaps.
Reeves and staff also detailed programmatic and departmental changes underpinning the proposal — for example, a net $5.15% reduction across the teaching-and-learning division and technology investments offset by custodial contract savings and other realignments. They warned that some budget pressures — notably recapture payments that are projected to rise from about $118.0 million to roughly $132.5 million — are structural and tied to state formulas and property‑tax compression. The board did not take final budget action during the meeting; staff indicated further work and follow-up presentations would come as the district refines revenue estimates and program options.
