Plano ISD adopts 2026–27 budgets with $44.8 million projected deficit; approves 2% pay increase

Plano Independent School District trustees voted unanimously on June 23 to adopt the district’s 2026–27 general fund, debt service and food and nutritional services budgets and a compensation plan that includes a 2% across‑the‑board pay increase and a higher starting teacher salary.

Chief Financial Officer Courtney Reeves told the board the proposed budget shows total revenues of $634,600,000 against expenditures (with recapture) of $691,600,000, producing a projected deficit of approximately $44,800,000. “Our general operating fund is projected to have a a deficit of approximately $44,800,000 for 26–27,” Reeves said during the public hearing and presentation. Reeves outlined drivers including continued inflationary pressure, rising operating costs, and underfunded state mandates that require local funding for special education, transportation, safety and other programs.

Trustees and administrators repeatedly pointed to the state finance system and recapture as structural contributors to the gap. Reeves said the district’s recapture payment is projected at about $132,500,000 for 2026–27, an increase of roughly $16,100,000 from the prior year’s estimate, largely because enrollment is declining while property wealth remains high.

The compensation plan included a new starting teacher salary of $64,000 (or $66,000 for teachers with a master’s degree), a 2% pay increase for eligible employees, continued monthly health contributions, and targeted market adjustments. President Lauren Tyra acknowledged the limitation while voicing discomfort with the raise size: “I don’t feel good about 2%. I would much rather our staff receive closer to market pay,” she said, noting the district’s people‑heavy budget and rising household costs.

Trustee Tara Lance moved to approve the budgets and compensation plan; Trustee Alisa (Lisa) Klein seconded. The motion passed by a voice/hand vote with all seven trustees in favor. Board materials and the budget book will be posted online as required; administration said it will continue searching for efficiencies and use fund balance strategically while returning to the board if material changes are needed.

Why it matters: Plano ISD officials said they face a structural funding problem — rising costs and mandates versus constrained revenue — and that the adopted package balances fiscal stewardship with a modest investment in employees. The board will review certified property values once received from the appraisal district to finalize tax rate calculations later this summer.