Plano ISD faces $44 million deficit in upcoming budget season

Plano ISD’s $44 million deficit is heading straight toward classrooms, not just spreadsheets. District leaders said May 6 that fiscal year 2026-27 is expected to bring about $561.9 million in spending against $517.1 million in net revenue, a gap wide enough to force hard choices on staffing, program offerings and school-based services if it is not closed.

The pressure is building in a district that serves about 44,000 students across 69 schools and programs. Officials said revenue is expected to fall by more than $14.5 million, with declining enrollment and recapture driving much of the loss. Recapture is the state system that takes a share of local property tax revenue from wealthier districts and sends it to districts with less property wealth, and Plano ISD said that bill is climbing, from $156 million in 2024-25 to $167 million in 2025-26.

That matters because fewer students can mean fewer teachers, fewer sections of popular classes and more pressure on remaining staff. A January 2026 demographer report showed enrollment in 2025-26 was down by 2,712 students from the year before, pushing the district below 44,000 students and forcing leaders to align staffing and facilities to a smaller student population. Plano ISD has already been discussing long-range facility planning and operational changes in response to the decline.

Deputy Superintendent Johnny Hill said the district has operated in deficit territory for years, but the current numbers suggest a more structural problem is emerging. That shift is important for families because a recurring deficit can sometimes be patched with reserves or one-time savings, while a structural deficit usually means the district must change how it staffs campuses, funds programs and plans for the next several years.

The board already approved the 2026-27 compensation plan on April 7, setting a starting certified teacher salary of $64,000, or $66,000 for teachers with a master’s degree, along with a minimum 2% raise for eligible employees and a $330 monthly healthcare contribution. District staff estimated those pay changes at about $7.43 million for the raises, $500,000 for market-rate adjustments and $1.5 million for staffing changes tied to program needs, partly offset by about $7 million in payroll efficiencies through attrition and zero-based staffing.

Plano ISD first projected a $26.5 million deficit for 2025-26 in January 2025. By January 2026, that had widened to $43.75 million for 2026-27, and the May 6 update pushed it to $44 million. Trustees are expected to adopt the final budget in June, leaving families in Plano and across Collin County with a clear stakes test: whether the district can protect classrooms, keep compensation competitive and avoid deeper cuts as enrollment keeps falling.