Prosper ISD gets an early look at 2026–27 budget; district projects $10.3 million shortfall and weighs 2%–3% raises

Prosper ISD trustees on Monday received a preliminary preview of the district’s 2026–27 budget and two staff pay options, with the district projecting a roughly $10.3 million deficit if no raises or retention stipends are approved.

“This is going to be our first look at our budget for next year and some compensation options,” presenter Miss Croix told trustees, calling the presentation a “soft launch” and warning that the figures will change as tax values and enrollment projections are refined.

Miss Croix said House Bill 2 produced about $17.2 million for Prosper ISD, including new teacher retention allotments and increases to basic and ABC allotments. “They gave us some, but it’s still not enough,” she said, adding that rising local and operating costs have largely absorbed the state funding gains.

The presenter told trustees that between the 2024–25 and 2025–26 years the district saw compensation costs increase about 17.4%, fuel costs about 20.6%, insurance about 47.9% and utilities about 52%, which together have created what she called a “state appropriation deficit.” She said the district began the current year with an adopted budget gap of about $29 million but has since identified savings without cutting positions.

Miss Croix laid out specific savings: delaying certain Watkins‑related salary and equipment items (~$10 million), staffing‑model changes (including reconfiguration of some grade‑level instructional assignments and reductions in some aide positions) that she estimated would save roughly $4.9 million, department budget reductions of about $3.2 million and campus underspending of about $400,000. Capital improvement purchases for fine arts and athletics will be paused for a year.

For compensation, trustees were shown two menu options: a 2% across‑the‑board raise for all staff with an estimated cost of about $6.2 million, and a 3% raise costing roughly $8.9 million. Miss Croix said those figures assume flat revenue and do not include a retention stipend. Under her soft‑launch scenario, the district would still face the $10.3 million shortfall if no other revenue or savings materialize.

Board members asked clarifying questions about the expense and revenue slides. One trustee asked Miss Croix to revisit the expense slide and she confirmed that the personnel cost figure reflected both staffing model changes and exclusion of a retention stipend from the projection. A second trustee asked whether peer districts had announced raise levels; Miss Croix said Frisco had indicated a 3% proposal and that Prosper is monitoring neighboring districts to remain competitive.

Miss Croix credited Andrea Hendrickson in HR for recent salary‑leveling work and outlined the board timeline: the district will return in March with a compensation plan for a board vote, present an initial 2026–27 budget review in April, a near‑final review in May and formally adopt the budget in June; she noted the district will likely need an August budget amendment after tax values are certified.

No formal motions or votes occurred during the session. The board adjourned at 07:19.

What’s next: trustees are scheduled to consider a compensation plan in March; the district’s June adoption is expected to be followed by an August amendment when certified tax rolls are available.