2026-27 Budget Development
Frisco ISD continues to prioritize effective stewardship of public funds, ensuring every dollar is used to maximize student success. Amid shifting enrollment patterns and evolving economic conditions, the District is embarking on a comprehensive budget development process for the 2026-27 school year.
The School Board will hold a series of budget workshops throughout the spring before adopting a final budget in June. This page will be updated regularly to keep the community informed of the District’s financial planning and decision-making process.
Budget Development Updates
May 7, 2026
At the May 7 Budget Workshop, the Frisco ISD Board of Trustees received an updated look at the District’s proposed 2026-27 budget, including financial benchmarking data, a “near final” General Fund budget, compensation recommendations, debt service projections, and Child Nutrition Fund updates.
The workshop began with a financial benchmarking presentation comparing Frisco ISD to nine similar Texas school districts. The comparison focused on revenue, expenditures, staffing, and operational spending. The data showed that Frisco ISD continues to operate relatively lean compared to peer districts, particularly in staffing and administrative costs, while prioritizing classroom instruction and student opportunities.
Trustees also reviewed the District’s overall working budget for 2026-27, which continues to reflect the financial impact of declining enrollment. Current estimates show approximately $651.5 million in revenue available for appropriation, a decrease of about $23.5 million from the prior year’s adopted budget. District administration noted that enrollment initiatives such as Access Frisco and Frisco FLEX are helping slow the loss of students and partially offset declining revenue.
The workshop also revisited budget reduction strategies discussed in previous workshops, including enrollment leveling, campus and department budget reductions, instructional coaching adjustments, and the closure of Staley Middle School, all of which were incorporated to help reduce the projected budget deficit while continuing to prioritize classroom instruction and employee compensation.
Compensation Plan
Despite challenges from declining enrollment, the proposed budget continues to prioritize compensation and classroom support. District administrators presented a proposed compensation package totaling approximately $11.2 million, including:
A 2% pay increase for eligible staff, capped at $2,000 for professionals in central administration
Increases to special education stipends for resource/inclusion and centralized special education classroom teachers
A $0.25/hour increase in pay for special education paraprofessionals on top of the proposed 2% raise
An increase in the base salary for new teachers from $62,000 to $64,000
Additional market adjustments for select positions to compete with non-school markets
Balanced Budget
At this stage in the process, the proposed General Fund budget reflects a projected deficit of approximately $3.6 million. District leaders discussed several budgeting methodologies and emphasized that the budget will continue to be refined prior to adoption, with the expectation of a balanced budget.
Other Budgets
In addition to the General Fund, trustees reviewed the proposed Debt Service Fund budget and Child Nutrition Fund budget.
The Child Nutrition Fund budget reflects continued efforts to manage declining participation while maintaining service levels for students.
The Debt Service Fund proposal maintains the District’s current debt service tax rate while continuing the District’s strategy of refinancing debt to reduce long-term costs and shorten repayment schedules. Since August 2025, the District has refinanced outstanding debt three times, saving FISD taxpayers over $152.2 million in future interest costs.
Next Steps
The proposed budget will be finalized later this month, followed by a public hearing at the June 8th Board meeting. Formal budget adoption is set for mid-June.
Budget workshop #3 presentation slides
Watch the May 7, 2026 Board Workshop
April 2, 2026
The April 2 Budget Workshop focused on two key areas: annual salary benchmarking and updated strategies to close the district’s projected 2026-27 budget deficit.
Salary Benchmarking Overview
The Board reviewed the district’s annual compensation benchmarking using 19 peer districts as the local pay market.
Teacher pay remains the primary focus, and Frisco ISD’s teacher pay scale remains competitive compared to the local market.
New teachers are paid within $300/year of the market median, while more experienced teachers exceed the median around the 10-year mark, consistent with the district’s long-standing approach to retention.
Recent adjustments to the pay scale, including added step increases at key experience milestones, help maintain this structure despite a significant (approximately 6%) shift in the regional teacher pay market driven by state legislation.
Average teacher salaries in Frisco ISD remain closely aligned with neighboring districts, and additional compensation is available through stipends and the Teacher Incentive Allotment (TIA).
For non-teaching positions, the district considers compensation competitive if it falls between 90% and 110% of the market median. This range accounts for differences in structure, job responsibilities, and tenure of existing staff between comparison districts.
Overall, Frisco ISD’s non-teaching positions remain within the competitive range.
Targeted reviews are underway for certain auxiliary roles facing labor market pressure.
The District continues to lead in benefits, with health insurance contributions in the top quartile of peer districts.
Budget Update and Deficit Reduction
Since January, the projected deficit has been reduced from $28.6 million to approximately $2.1 million through a combination of expenditure reductions and proposed revenue strategies.
Key actions to reduce the deficit include:.
$6.4 million in central department efficiencies and budget reductions, including the use of an additional $2.1 million in TIRZ funds to pay for operating costs.
Proposed new revenue options, such as fare-based transportation, facility rental adjustments, and a Chromebook insurance fee.
Staffing efficiencies from enrollment leveling, the retirement of Staley Middle School, and changes to the middle school instructional coaching model, all of which were discussed during the January 20th workshop.
Several variables remain in progress, including payroll projections and enrollment from Access Frisco, both of which could further improve the district’s financial position ahead of final decisions.
The next budget workshop is scheduled for May 7, with budget adoption planned for June.
Budget workshop #2 presentation slides
Watch the April 2026 Board workshop
January 20, 2026
District administration presented a first look at the 2026-27 preliminary budget, outlining the financial impact of declining enrollment and the initial strategies to bridge the projected funding gap.
Chief Finance and Strategy Officer Kimberly Smith shared that revenue is expected to decrease by approximately $36 million next year compared to the 2025-26 adopted budget, driven primarily by enrollment decline and the expiration of the Fast Growth Allotment.
To address a baseline deficit of $28.6 million, the District has identified several major cost-saving measures. These recommendations align directly with the Comprehensive Sustainability Plan, which prioritizes aligning staffing and facilities with shifting enrollment trends to ensure long-term efficiency:
Closing Staley Middle School: Projected savings of $2.8 million in operating costs.
Enrollment Leveling: Adjusting staffing ratios to align with current enrollment would save $12.7 million by reducing 98 elementary, 30 middle school, and 43 high school teaching positions (FTEs) through attrition and reassignment.
Middle School Instructional Coaching: restructuring this model would save $1.4 million.
After applying these identified savings, the preliminary budget stands at a $11.7 million deficit.
A key takeaway from the workshop was that revenue is currently declining at a faster pace than the District can cut costs without impacting student programs. While the District has identified nearly $17 million in savings so far, this covers less than half of the anticipated revenue loss.
The Board reviewed and discussed potential revenue-generating options to close the remaining gap. These options will be further explored and analyzed before a formal recommendation is made.
Budget workshop #1 presentation slides
Watch the January 2026 Board Workshop