Plano ISD is bracing for a sizable budget deficit, with early estimates pointing to a $43.75 million shortfall for the 2026–27 fiscal year.District administrators shared the financial outlook during the board of trustees meeting on Jan. 20, highlighting a growing gap between projected revenues and increasing operating costs.

Falling Enrollment Impacts Funding

Current projections show the district expecting approximately $527.3 million in revenue while expenses are anticipated to reach about $571.05 million. Although rising property values in Plano have increased local tax collections, overall revenue is still forecast to decline by roughly $7.23 million compared to the prior year. District leaders attribute much of the financial strain to continued enrollment losses, which directly affect state funding allocations.

Enrollment has dropped sharply in recent years. Plano ISD reported 46,550 students during the 2024–25 school year. That number fell to 43,808 in 2025–26 and is projected to decline further to around 41,830 students in 2026–27. The anticipated 4.6% decrease next year alone could result in an estimated $20 million reduction in funding. Officials also noted that proceeds from property sales tied to recently closed campuses provided a one-time financial boost this year. However, that temporary revenue source will not be available moving forward.

Campus Closures Reflect Ongoing Trends

Declining enrollment has already led to significant changes across the district. In June 2024, trustees unanimously approved the closure of four schools: Foreman Elementary, Armstrong Middle School, Davis Elementary and Carpenter Middle School. Those campuses shut down at the end of the 2025 school year. Programs previously housed at the affected schools, including the regional day school program for the Deaf at Davis Elementary, have since been relocated to other district facilities.

Key Budget Decisions Approaching

District officials stressed that the figures remain preliminary and could shift in the coming months. Plano ISD is scheduled to approve its employee compensation plan in March, followed by departmental budget approvals in April. Trustees are expected to vote on the finalized 2026–27 budget in June, with adoption of the district’s tax rate slated for August.

Leaders say the district’s priority will be maintaining financial stability while continuing to meet student needs as enrollment trends evolve.