McKinney ISD trustees unanimously approved the district’s 2026-27 budget during a June 29 meeting, a plan that anticipates a roughly $5.8 million deficit in the general fund. McKinney is located approximately 12 miles east of Frisco.
Chief Financial Officer Marlene Harbeson presented figures showing projected revenues of more than $276 million against expenditures nearing $282 million. To cover the gap, the district expects to draw from its fund balance, which stands at about $91.5 million at the start of the academic year. This drawdown would result in an estimated ending fund balance of $85.6 million.
Harbeson linked the financial pressure to 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 divides finances into three categories. The general fund handles daily operational 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 $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. The district has also sought new revenue opportunities in recent years to address similar shortfalls.
