Budget Development

The classroom is our first priority when developing a budget to ensure we maintain the academic and operational excellence that Frisco ISD is known for. Unfortunately, FISD is not immune to the economic challenges facing the rest of the state and nation. Inflation has put a strain on both the district and our staff as the cost of living and doing business has become increasingly expensive over the last five years, the last time funding for schools was increased.

The Instructional Support Team prioritizes giving staff a raise while identifying as much savings as possible without impacting student learning, reducing or eliminating student opportunities or compromising what makes Frisco ISD unique.

Latest Budget Update

The 2024-25 budget was approved unanimously by the Board of Trustees on May 15. Read the recap.

Previous Budget Updates

May 8, 2024

A budget workshop was held to review the “near final” budgets for the General Fund, Child Nutrition Fund and Debt Service Fund and wrap up final recommendations.

Teachers and principals talked with the Trustees about why they joined Frisco ISD and why they continue to stay. The trustees asked questions and Dr. Todd Fouche followed up with commentary that reflected that retaining and supporting teachers is rooted in maintaining the vitality of the learning organization as a whole.

District leadership presented how individual departments have identified savings and efficiency opportunities, including:

  • Teaching & Learning, Special Education, Student Services, Technology and Human Resources      

The proposed budget includes a 3% staff raise and a $30.8 million deficit for the 2024-25 school year.

April 18, 2024
Chief Finance and Strategy Officer Kimberly Smith recapped the last several budget workshops, provided benchmarking comparisons with other districts and updated the board on recommendations for the 2024-25 working budget.  

Frisco ISD compares itself to other ISDs with 50,000 to 100,000 students, a TEA rating of B or higher and a School FIRST rating of A. When compared: 

  • Peer districts have larger low-socioeconomic populations, which qualifies them for more grant funding.

  • Peer districts spent on average $1,373 more per student in the 2023 fiscal year than FISD did, and 84% of that additional spending came from special revenue grant funds.

  • FISD spent an average of $143 more per student on direct instruction than peer districts in 2023.

  • FISD ranks highest in extracurricular spending because of our student opportunity model.

  • FISD spends significantly less on operations than our peers because our buildings are newer and more energy efficient.

  • FISD spends about the same per student (3% of the budget) on general administrative costs as peer districts.

  • FISD has the highest ratio of teachers to total staff among our peer group. 

    • 57% of employees are teachers, compared to 49% of our peers.

  • FISD has an average number of central administration staff compared to peer districts.

Smith reviewed the benefits teachers receive that are not included in their compensation, but acknowledged that a VATRE for teacher raises is understandably not popular, although it is fiscally conservative.

  • It is feasible with the current rainy day fund balance to include a raise not contingent on a VATRE; however, cuts may be necessary if the VATRE does not pass. 

Smith provided a set of revenue-generating options and budget-reduction options. The deficit reduction strategies presented were informational only and are not currently being proposed. They will only be considered when deemed absolutely necessary by Trustees.

April 2, 2024
Chief Finance and Strategy Officer Kimberly Smith explained that FISD is projected to use $7 million of its rainy day fund for the 2023-24 school year. She also presented the Trustees with a proposed compensation plan for the 2024-25 budget year.

FISD pay is currently competitive, but not ahead of the market.

  • FISD compares its salary offerings with 19 local school districts.

  • FISD is proposing a 3% raise to employees and a minimum wage of $15/hour.

  • Each 1% raise costs the District $5 million.

  • The 2024-25 proposed raise will cost the District $15 million.

FISD cannot responsibly fund a 3% raise or $15 minimum wage from the rainy day fund.

  • Funding would need to come from voters in a VATRE, a voter-approval tax rate election.

  • A VATRE will keep FISD competitive, but not pull the District ahead of the market.

  • If a VATRE is approved by voters, it would raise $12 million of the $15 million needed for the raise. 

Budget workshop #3 presentation slides

February 29. 2024
Chief Finance and Strategy Officer Kimberly Smith recapped the Jan. 25 workshop, emphasizing that the District wants to make smart decisions without prematurely altering the fabric of Frisco ISD. 

Smith made three key recommendations:

  • Identify as much savings as possible without impacting instruction or how FISD operates.

  • Adopt a manageable deficit with the understanding that options for balancing the budget must continue to be explored and will be implemented if the legislature does not provide adequate funding in 2025.

  • Consider raising the Maintenance & Operation tax rate by $0.03165 to pay for a raise. This would take a voter-approval tax rate election, VATRE

Smith also shared the budget adoption timeline, which included more budget workshops this spring in addition to a public hearing and vote on the budget in May.

January 25, 2024
Chief Finance and Strategy Officer Kimberly Smith presented three key topics before discussing the 2024-25 preliminary budget with the Trustees. Topics included the school funding formula, critical factors influencing the budget, and the budget process. 

The critical factors for the 2024-25 budget include 

  • Enrollment: Flattened enrollment and a lower attendance rate.

  • The economy: Inflation, employment competition, and other economic factors like utility rate hikes and rising insurance premiums

  • The Texas Legislature: The state has the funding to help, but the $4 billion appropriated for schools was not spent.

During the discussion, Trustees expressed an interest in additional workshops in the spring of 2024 to ensure all Board members have the tools needed to approve the 2024-25 budget.

October 24, 2023 
Director of Government Affairs & Strategic Engagement Megan DeWolfe presented a workshop to the Trustees recapping the 2023 legislative sessions, directly impacting Frisco ISD's funding. Topics covered in the legislative workshop include: