McKinney ISD trustees unanimously approved the district’s 2026-27 budget during a June 29 meeting, a decision that acknowledges a projected deficit of approximately $5.8 million within the general fund. McKinney is located about 11 miles south of Anna.
Chief Financial Officer Marlene Harbeson presented figures showing that while the district anticipates revenues exceeding $276 million, expenditures are expected to reach nearly $282 million. To cover this gap, the district plans to draw from its fund balance, which is estimated at $91.5 million at the start of the school year. This drawdown would result in an ending fund balance of roughly $85.6 million.
Harbeson cited several factors contributing to the financial outlook, including tax rate compression and slower growth in property values. The budget also incorporates a projected enrollment of 24,000 students, approved 3.5% midpoint salary increases for staff, and a recapture payment increase of more than 6%, totaling nearly $8 million.
The approved budget is divided among three primary funds. The general fund handles daily operational revenues and costs. The student nutrition fund projects $14.4 million in revenue against $13.8 million in expenses, adding approximately $600,000 to its balance. The debt service fund anticipates matching revenues and expenses of about $99.8 million to cover bond obligations.
Superintendent Shawn Pratt noted that while the district has implemented cost-saving measures such as eliminating vacant positions and reorganizing central office roles, some current spending limits are not sustainable long-term. Assistant Superintendent of Business Operations Dennis Womack stated that the district expects its tax rates to remain among the lowest in Collin County, alongside neighboring Frisco and Plano ISDs.
