After moving to restructure several programs and introduce new revenue, Frisco ISD has proposed a balanced budget for the 2025-26 school year.
Since 2016, FISD has used a Priorities-Based Budget mindset, with a goal to reduce or eliminate spending in areas that do not align with identified priorities, while maintaining a focus on student learning, support and opportunities.
Through the budget process so far, district leaders have identified:
$15 million saved through staff restructuring
$800,000 saved through extracurricular program changes
$1.5 million saved in non-instructional expenses
Kimberly Smith, Frisco ISD’s chief finance and strategy officer, said further restructuring and programmatic changes will get the District to a fully balanced budget before an expected Board of Trustees vote in June. After three consecutive years of deficit budgets, Trustees tasked FISD staff to balance the 2025-26 budget to ensure the District’s long-term financial health.
While staff continue to work on the proposed budget, several crucial factors are yet to be determined, including final 2025-26 enrollment numbers, economic factors like inflation, and state funding formulas determined in the current state legislative session.
Restructuring staff and programs
Frisco ISD has a fundamental responsibility to act as a responsible steward of public funds, ensuring that taxpayer dollars are used effectively to support student success.
After years of sustaining District programming and staff through deficit budgets, Frisco ISD has had to make difficult but necessary decisions to restructure in response to inflationary and budget constraints and declining enrollment.
Most savings related to staff positions will be reached through attrition, with a priority of not affecting the classroom experience. In cases where positions are restructured, affected staff have been informed. Student program changes will be communicated with Frisco ISD families throughout the spring.
While such changes can be difficult for students, families and staff, the District’s focus remains on maintaining a high-quality education while operating within financial realities.
New revenue and reductions
As they passed a deficit budget for 2024-25, Trustees urged FISD staff to cut costs and find new sources of revenue to balance the 2025-26 budget.
One of those new revenue sources is Access Frisco, an open transfer program beginning in 2025-26 to welcome students from outside District boundaries to enjoy the unique student opportunities and programs available in FISD.
Over 330 students who have applied to Access Frisco have been offered and accepted a seat on available campuses, for an additional $3 million in state funding.
New revenue from the Access Frisco program will help the district make up for more than $17 million in projected losses due to declining enrollment.
2024-25 Budget Update
In addition to proposing a balanced budget for next year, District officials are proud to announce that this year’s budget has been balanced.
Trustees passed an estimated $30 million deficit budget in June 2024, which included $15 million for a 3% across-the-board staff raise. By using funds from the Tax Increment Reinvestment Zone for the M&O budget and receiving $8 million from the state via a one-time property value audit, the deficit has fallen from $30 million to $3 million for 2024-25.
Learn more about TIRZ funds and how they have benefited Frisco ISD.
A $3 million deficit is considered balanced given historical FISD spending trends and the likelihood it will fall further before the year is through.
Next Steps
As the final 2025-26 budget is developed, Frisco ISD will evaluate savings from staff turnover, additional cost reductions from central office positions on hold, staffing needs related to HB3 mandates, pay raises and other departmental budget changes.
The budget process will continue through this spring, and the public is invited to budget workshops to get a better understanding of the behind-the-scenes work being done.
April - The District conducts benchmarking and salary review. Preliminary Child Nutrition Fund and Debt Service Fund budgets are discussed. FISD receives preliminary certified property values.
May - Final budget recommendations are made, including a compensation plan.
June - A public budget meeting is conducted. The budget is adopted, and the budget book is published.
While FISD faces financial challenges, strategic planning and efficiency measures are helping to mitigate the impact. The District remains committed to maintaining financial stability while ensuring that students continue to receive high-quality education and support services.