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District officials project tax rate decrease for 2025-26
positions, while also pursuing revenue-generating opportunities like the open enrollment program Choose McKinney. “There’s not a program that we offer that we want to cut or reduce ... however when you have rising expenditures and stagnant revenue, you are forced to have to make a decision and any decision you make to reduce a program is a bad decision overall,” Womack said. Looking ahead A breakdown of the preliminary budget for FY 2025-26 includes: • $258.9 million in estimated revenue • $265.8 million in expenditures • $6.9 million projected shortfall The proposed 2025-26 property tax rate is $1.0780 per $100 of assessed value, a nearly 5-cent decrease from the prior year’s tax rate of $1.1252. The tax rate is composed of two parts including: • The maintenance and oper- ations rate, which is set at $0.7080. This portion of the tax rate is determined by state law, Womack said. • The interest and sinking rate, or debt service rate, which is set at $0.37. This portion of the tax rate is determined by district officials. The proposed tax rate is created using projected property values from the Collin Central Appraisal District. The average single-family home in McKinney has increased about $6,000 from the prior year to around $581,600 in 2025, according to the meeting presentation. Harbeson said the owner of an average single-family home can expect their tax bill to decrease by $162.
As the 2024-25 school year concludes, McKinney ISD officials say the outlook for the next year’s budget includes a reduced property tax rate and a nearly $7 million shortfall. An update on the district’s projected budget and tax rate for fiscal year 2025-26 was presented by Chief Financial Officer Marlene Harbeson during a May 12 board of trustees meeting. Current situation According to a presentation at the meeting, the 2024-25 budget included: • $256.3 million in revenue • $273.4 million in expenditures • $17.1 million deficit The district’s fund balance compensated for the deficit, and stands at roughly $86.8 million at the end of FY 2024-25, district
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documents state. Assistant Superintendent of Business
Operations Dennis Womack said investments in pay increases for teachers, growing demand for special education services and the state mandate to have an armed security officer at each campus contributed to increased expendi- tures in recent years. Other contributing factors include state funding formulas, changes in program-specific federal funding, inflation and stagnant student enrollment, the presentation states. Womack said a deficit budget is not the result of financial mismanagement, but rather due to an increase in operating expenses without new funding to compensate. The district has implemented a number of cost reduction strat- egies, Womack said, including eliminating vacant positions and reorganizing central office
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