McKinney | May 2026

Education

BY MARY KATHERINE SHAPIRO

Slowing property value growth could cause $4M MISD budget shortfall

The context

MISD is projecting $277 million in revenue and $281 million in expenses, resulting in a nearly $4 million shortfall for FY 2026-27. The predicted total tax rate of $1.0528 per $100 valuation is lower than the 2025 tax rate of $1.1043. The rate includes a maintenance and operations, or M&O, tax rate of $0.7328 and an interest and sinking, or I&S, tax rate of $0.32. “We are going to be lowering the debt service tax rate, the I&S rate, from $0.37 to $0.32,” Harbeson said. “It’s due to our prudent and strategic management of our debt.” District ocials are also predicting a $500,000 increase in recapture. Other factors could change the current projections, such as average daily attendance numbers and legislative decisions. Trustees will continue budget discussions at a June 29 meeting.

Fiscal year 2026-27 projections show slowing property tax value growth for McKinney ISD homes, which impacts the district’s funding. The district received certied property tax estimates from the Collin Central Appraisal District in late April, MISD’s Chief Financial Ocer Marlene Harbeson said at a May 18 meeting. Values rose more than 131% in the last nine years to $29.64 billion in total certied taxable value in 2025. Harbeson predicted a 4% increase in property values for scal year 2025- 26, resulting in over $214 million in revenue. However, new projections show only a 2.75% increase, which is the lowest rate MISD has seen in the past 10 years, she said, and will bring in about $211 million in revenue. Lower property values drove the decrease as the average home value fell by more than $7,000 year-over-year.

MISD’s certied taxable value

$30B

$20B

$29.64B certied taxable value

$10B

$12.82B certied taxable value

SOURCE: COLLIN CENTRAL APPRAISAL DISTRICTCOMMUNITY IMPACT

Drive through Mustang Lakes, and it’s clear—this community is special. Winding roads, glistening lakes, and grand oaks create a stunning backdrop for resort-style amenities, a prime “three corners” location, and top-rated Prosper ISD and Celina ISD schools. Come discover why Mustang Lakes is elevated living at its finest. T Classy, not splashy. WITH THE EXCEPTION OF OUR RESORT-STYLE POOL.

1-ACRE+ CUSTOM HOMESITES AVAILABLE | MUSTANGLAKES.COM

COMMUNITYIMPACT.COM