Murphy homeowners in the Plano ISD will pay an estimated $54 more in school taxes next year, even as the district proposes cutting its tax rate by less than a penny and draws down reserves to cover a $44.8 million budget deficit.

The Plano ISD Board of Trustees adopted a $691.6 million general operating budget for 2026-27 at its June 23, 2026 work session, according to the Murphy Monitor. Board President Dr. Lauren Tyra presided over the session, which included a public hearing before the vote. The spending plan projects $634.6 million in revenue against $691.6 million in expenditures. The district will tap its existing fund balance to bridge the gap.

The shortfall reflects a squeeze familiar to Murphy families: enrollment is projected to fall to about 41,830 students, continuing a multiyear slide driven by lower birth rates, rising housing costs, and growing competition from charter schools, private schools, and homeschooling. Because Texas state aid is tied to average daily attendance, fewer students mean less money coming in.

Tax rate drops, but bills rise

District officials are proposing to lower the total tax rate from $1.03955 to $1.03275 per $100 of taxable value. The reduction of $0.0068 keeps the rate at the voter-approved ceiling; going higher would trigger a voter-approval election under Texas law.

Still, rising property values push the bill in the other direction. Based on a mean taxable home value of $368,605, the average Murphy homeowner's annual Plano ISD tax bill would climb from $3,753 to $3,807.

The proposed rate breaks down as $0.79540 for maintenance and operations (down from $0.80220) and $0.23735 for debt service. The debt-service rate stays flat.

Where the money goes

Instruction remains the district's largest line item at about $340.8 million, followed by maintenance and operations at $55.6 million, school leadership at $32 million, and guidance and counseling at $27.2 million.

The budget includes a 2% salary increase for eligible employees, plus market-rate pay adjustments and continued health-care contributions aimed at retaining staff. District officials identified rising recapture payments, utilities, insurance, and transportation costs as major spending pressures. To offset those, Plano ISD plans to rely on staff attrition tied to declining enrollment, payroll efficiencies, and zero-based budgeting.

Chief Financial Officer Courtney Reeves presented the budget framework to trustees at the board's Tuesday, May 5 meeting. According to the district's budget presentation, state funding formulas have not kept pace with rising costs, and additional money from House Bill 2 does not fully offset enrollment losses, inflation, and growing maintenance needs for aging facilities.

How Murphy parents can weigh in

The board will meet Tuesday, August 4 for its regular monthly meeting and Tuesday, August 18 for a work session to formally set the tax rate. Under board policy BED(LOCAL), parents can sign up to speak at either meeting; online registration opens at 8 a.m. and closes one hour before the session begins.

Both meetings are held at the Administration Building Board Room, 2700 W. 15th St. in Plano. Property tax details are available at Texas.gov/PropertyTaxes.