Frisco Independent School District (FISD) is navigating financial adjustments for the upcoming 2026-27 fiscal year, with plans to implement a 2% salary raise for teachers. During a recent board of trustees meeting on May 7, district officials reviewed budget projections that anticipate approximately $752 million in operating revenue, a decrease from the current year’s $771.7 million. This reduction is largely attributed to a decline in student enrollment.

Enrollment Challenges and Revenue Strategies

Kimberly Smith, FISD’s chief finance and strategy officer, highlighted the unexpected drop in enrollment for the 2025-26 year and projected further declines. To mitigate revenue losses, the district’s Access Frisco program has enrolled 870 students from other districts, generating about $8.4 million.

Smith presented three payroll options to the trustees, each involving different strategies for funding raises and vacant positions. The preferred option, Option B, proposes a 2% raise while funding 40% of vacant positions, achieving a balanced budget. Other options included a 2% raise with full funding for vacant positions, resulting in a $3.6 million shortfall, and a 3% raise with no funding for vacancies, leading to a $4.8 million shortfall.

Teacher Compensation and Financial Health

Smith assured that teacher raises would align with or exceed the district’s new hire pay scale, with starting salaries expected to begin at $64,000. She noted that if a teacher’s 2% raise does not match the new hire salary, adjustments will be made to ensure parity.

FISD’s financial health is supported by a robust fund balance, which Smith indicated could cover minor planned deficits. The district’s operating revenue per student has surpassed comparable districts, thanks to redirected tax increment reinvestment zone (TIRZ) revenue. However, Smith cautioned that increasing instructional costs per student might become unsustainable in the long term.

Budget Considerations and Future Plans

In addition to the general fund, the board reviewed budgets for the district’s debt service and child nutrition funds. The debt service fund is projected to have $175.8 million in revenue against $201.2 million in expenditures, while the child nutrition fund anticipates $25.3 million in revenue and $27.4 million in expenditures, consistent with the current year.

The board plans to hold a public hearing and consider adopting the budget in June, ensuring transparency and community involvement in the district’s financial planning.

Original reporting: Community Impact — Frisco — read the source article.