Prosper ISD trustees have signed off on a new district spending plan that comes with a looming problem: a projected $42.2 million shortfall. The board voted unanimously to approve the budget on June 16, even as Chief Financial Officer Keri Croy told trustees she is still hunting for one-time savings and operational cuts while keeping a 3% pay bump for current employees in place.
Croy described the document as a "near-final budget" in her presentation to the board and said the goal is to keep whittling down the gap, according to Community Impact. District officials say they plan to lean on reserve balances held in each fund, rather than taking on new debt, to cover whatever shortfall remains.
Budget Breakdown
The district’s adopted budget shows a $25.1 million shortfall in the general fund and a $17.1 million shortfall in the debt service fund, for a combined $42.2 million gap, according to the posted board packet. The child nutrition fund is listed as balanced, and the district notes it will tap reserves to cover any expenditures that outpace revenue.
Personnel costs account for more than three-quarters of general fund spending, and the budget already bakes in a 3% raise for current staff, the district said in its Prosper ISD board recap.
Growth, Recapture and the State
Prosper’s money squeeze is not just about spending. District leaders say enrollment growth is slowing at the same time property wealth per student remains high. That combo trims the district’s fast-growth aid and ramps up what it must send back to the state through recapture.
Croy warned that Prosper is "almost to the point ... where all of our extra revenue goes back to Austin in recapture," according to Community Impact. The state’s rules for fast-growth allotments and the New Instructional Facility Allotment are laid out by the Texas Education Agency.
What Comes Next
District leaders say they will keep looking for cuts and one-time savings through the summer, then revisit the numbers once county appraisal values are certified. The June board materials included a public hearing on the proposed budget and a schedule of upcoming meetings that will offer additional chances for residents to weigh in, according to Prosper ISD.
Residents can watch future board meetings or submit public comments through the district’s posted agenda materials. Officials also stress that the $42.2 million figure is still a projection and that adjustments are expected as revenue data is finalized.
The board is scheduled to meet again on July 20, according to Prosper ISD, and trustees could revisit budget questions at that meeting if needed.
