At its meeting on August 25, 2025, the Prosper Independent School District Board of Trustees adopted the 2025-2026 budget, demonstrating a significant investment in its dedicated employees. This budget reaffirms the district's unwavering commitment to developing its staff to lead and inspire growth by prioritizing fair compensation and support for all employees.
Reduced tax rate
In addition to prioritizing its workforce, Prosper ISD also demonstrates its commitment to the community through a reduced tax rate. For the 2025-2026 fiscal year, the proposed total tax rate is $1.2141, which is lower than the 2024-2025 adopted rate of $1.2552. This reduction reflects the district's commitment to fostering meaningful connections within its expanding community, while responsibly managing finances and maintaining an exceptional educational experience. Furthermore, legislative changes include an increase in the general homestead exemption from $100,000 to $140,000 and an increase in the exemption for seniors and the disabled from $10,000 to $60,000, which will be decided by voters on November 4, 2025.
Commitment to recruiting and retaining the best staff
The adoption of this budget underscores Prosper ISD's core mission to unite students, families, teachers, staff, and the broader community in the relentless pursuit of excellence. Recognizing that educational excellence requires a collective effort, the district has proactively utilized both state and local funds to provide equitable compensation adjustments for all employees, especially for those staff members whose compensation was not fully addressed by state funding. This strategic approach reflects the district's long-standing dedication to implementing annual pay increases, a practice that has consistently helped Prosper ISD retain top educators in Texas. The Board of Trustees unanimously approved specific compensation adjustments on June 13, 2025.
"Every Prosper employee makes a meaningful impact on our students and their families, and the Board of Trustees recognizes this," stated Dr. Holly Ferguson, Superintendent. "I'm grateful they've approved this competitive compensation plan that acknowledges our staff's dedication. Our team's commitment to excellence sets our district apart as they work tirelessly for our students."
The 2025-2026 compensation plan includes several key adjustments designed to attract and retain high-quality talent:
Teachers (of record) with 1-2 years of completed experience will receive a $2,500 increase. This investment is funded entirely by Prosper ISD's local funds.
Teachers (of record) with 3-4 years of completed experience will receive a $2,500 increase, supported by funding from House Bill 2.
Teachers (of record) with 5 or more years of completed experience will receive a $5,000 increase, also bolstered by House Bill 2 funding.
The starting teacher salary for Prosper ISD has been set at $62,250.
The new hire teacher salary scale has been extended from 25 to 30 years, providing enhanced long-term compensation opportunities for educators.
All other 2025/2026 returning staff, including vital roles such as Counselors, Nurses, Librarians, Non-Teaching Professionals, Paraprofessionals, and Auxiliary staff, will receive a 4% salary increase. Prosper ISD is utilizing local funds to ensure these essential team members are adequately compensated in areas where state funding did not fully meet the need.
Budget Specifics, Including Deficit Budget
The 2025-2026 proposed budget outlines total expenditures of $427,215,623. While the projected revenue for the same period is $397,780,654, this results in an anticipated operational deficit of approximately $29.4 million for the fiscal year. The district's existing fund balance will cover this deficit.
This deficit stems from two primary factors: our commitment to employee raises and the continuous increase in student enrollment. Unlike districts with stable enrollment that can hire all staff at the beginning of the year, Prosper ISD must account for ongoing growth, projecting over 2,000 additional students by year-end. This rapid expansion necessitates reserving funds for additional staff and general district operations throughout the year, as we continuously adjust staffing based on demographic data. The district acknowledges that while the budget grows by approximately $40 million annually, the fund balance ideally grows by $10-20 million to maintain its relationship to the budget.
How are we managing the deficit budget?
To proactively manage this deficit moving forward, the district is focused on money-wise spending throughout the year. Central office department budgets have already been reduced, and open positions at Central Office are individually evaluated. Additionally, the Superintendent Staff Advisory Council will begin to address ideas for strategic, money-wise spending practices.
A significant portion of the overall budget is dedicated to personnel, with personnel expenses accounting for 80.2% of the total budget, totaling $342,759,056. This substantial allocation includes approximately $46 million earmarked for new employees, staff raises, benefit contribution increases, and additional hourly staffing needs.
Prosper ISD remains steadfast in its dedication to supporting the comprehensive well-being and professional growth of every employee, ensuring they are empowered to lead and inspire growth. The newly adopted budget exemplifies the district's "people first" philosophy, fostering a strong and thriving workforce committed to providing exceptional educational experiences for all students in Prosper ISD.
