McKinney ISD officials have projected a budget deficit of approximately $5.8 million for the 2026-27 academic year. The district’s board of trustees unanimously approved the financial plan during a meeting on June 29. McKinney is located about 7 miles west of Princeton.
The shortfall stems from a gap between projected revenues and expenditures within the district’s general fund. The budget outlines roughly $276 million in incoming revenue against nearly $282 million in expenses. To cover this gap, the district expects to draw down its fund balance, which is estimated at $91.5 million at the start of the school year, resulting in an ending balance of $85.6 million.
Chief Financial Officer Marlene Harbeson cited several factors contributing to the financial outlook. These include tax rate compression, slowing growth in property values, and a projected student enrollment of 24,000. The budget also incorporates approved 3.5% midpoint salary increases for staff and a recapture payment increase of more than 6%, totaling nearly $8 million.
The approved budget divides finances into three distinct categories. The general fund manages local tax revenues for daily operations. The student nutrition fund, which covers meal programs, projects $14.4 million in revenue against $13.8 million in costs, adding approximately $600,000 to its balance. The debt service fund anticipates $99.8 million in both revenue and expenses to cover bond obligations.
Superintendent Shawn Pratt noted that while the district has implemented cost-cutting measures such as eliminating vacant positions and reorganizing central office roles, some current spending limits are not sustainable long-term. District officials are proposing a decrease in the property tax rate for the upcoming year. The 2026-27 rate is projected at $1.0528 per $100 of assessed value, down from $1.1043 in the previous year.
