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

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