While property values in Plano continue to rise, revenue is still expected to drop<\/p>\n
Plano ISD officials are preparing for significant financial challenges ahead, with early projections showing a $43.75 million shortfall for the 2026\u201327 fiscal year.<\/p>\n
The district presented the outlook during the board of trustees\u2019 Jan. 20 meeting<\/a>, outlining the gap between expected revenue and rising expenditures.<\/p>\n Declining Enrollment Drives Revenue Loss<\/p>\n Current estimates show the district bringing in about $527.3 million in revenue while facing roughly $571.05 million in expenses. While property values in Plano continue to rise \u2014 boosting local tax collections \u2014 overall revenue is still expected to drop by about $7.23 million compared to the previous year.\u00a0<\/p>\n The primary reason is declining student enrollment<\/a>, which directly impacts state funding.<\/p>\n According to the presentation, Plano ISD enrollment has declined significantly in recent years, dropping from 46,550 students in the 2024\u201325 school year to 43,808 in 2025\u201326, with projections showing a further decrease to about 41,830 students in 2026\u201327. That projected 4.6% drop next year alone could reduce district funding by roughly $20 million.<\/p>\n District officials also noted that a one-time boost from property sales tied to recently closed campuses helped offset finances in the current budget year \u2014 but that revenue will not continue.<\/p>\n School Closures Reflect Long-Term Trends<\/p>\n The enrollment decline has already forced difficult decisions. In June 2024, trustees voted unanimously to close four campuses<\/a>: Foreman Elementary, Armstrong Middle School, Davis Elementary and Carpenter Middle School.<\/p>\n All four schools closed at the end of the 2025 school year. Specialized programs housed at those campuses, including the regional day school program for the Deaf<\/a> at Davis Elementary, were relocated within the district.<\/p>\n Budget Decisions Ahead<\/p>\n District leaders emphasized that the numbers remain preliminary and that key decisions are still ahead.<\/p>\n Plano ISD is expected to adopt its employee compensation plan in March, followed by departmental budgets in April. Trustees will vote on the final 2026\u201327 budget in June, with the district\u2019s tax rate scheduled for adoption in August.<\/p>\n Officials say the coming months will focus on balancing financial stability while continuing to support students amid shifting enrollment trends.<\/p>\n