McKinney ISD trustees unanimously approved the district’s budget for the 2026-27 school year during a meeting on June 29. The adopted plan anticipates a deficit of approximately $5.8 million within the general fund, which covers daily operational costs.
Chief Financial Officer Marlene Harbeson stated that the budget projects total revenues of more than $276 million against expenditures nearing $282 million. To cover this gap, the district expects to draw from its fund balance, which is set to start the year at roughly $91.5 million. This drawdown would result in an estimated ending fund balance of $85.6 million.
Harbeson linked the financial pressure to tax rate compression and slower growth in property values. The budget also incorporates a projected enrollment of 24,000 students, approved 3.5 percent midpoint salary increases for staff, and a recapture payment increase of more than 6 percent, totaling nearly $8 million.
The overall budget is divided into three distinct funds. The student nutrition fund projects revenues of $14.4 million against expenses of $13.8 million, adding about $600,000 to its balance. The debt service fund anticipates revenues and expenses of approximately $99.8 million each.
Superintendent Shawn Pratt noted that while the district has implemented policies to limit spending in areas like travel, he described these measures as not sustainable. In recent years, the district has reduced expenses by eliminating vacant positions, reorganizing central office roles, and cutting central office budgets.
District officials are proposing a decrease in the property tax rate for the upcoming year. The 2025-26 rate was $1.1043 per $100 of assessed value. The proposed 2026-27 rate is $1.0528 per $100, which is more than 5 cents lower. This total includes a maintenance and operations rate of $0.7328 and an interest and sinking rate of $0.3200.
