Carroll ISD Board Approves Balanced Budget for 2026-27 Fiscal Year

The Carroll ISD Board of Trustees unanimously approved the District's balanced budget for the 2026-27 fiscal year during its regular meeting on June 15, following a presentation by Deputy Superintendent of Business and Finance Chase Park.

The adopted budget reflects the District's continued commitment to fiscal responsibility while prioritizing investments in students, staff, and academic excellence. The balanced budget includes both the General Fund and Debt Service Fund and was approved as presented by the administration.

The total 2026-27 budget includes approximately $160.8 million in both revenues and expenditures, with no planned use of fund balance to support ongoing operations. The General Fund budget totals approximately $124.6 million ($20.5 million budgeted for recapture), while the Debt Service Fund totals approximately $36.2 million.

Staff Compensation Increases Approved

A key component of the budget is the Board-approved staff compensation package, which provides salary increases ranging from 3% to 5% for employees. The compensation plan represents a district investment of approximately $2.4 million and reflects Carroll ISD's ongoing commitment to attracting and retaining exceptional educators and staff members.

The budget was developed amid several financial challenges, including projected enrollment declines, limited growth in local taxable property values, and continued recapture obligations. District administrators also identified approximately $1 million in potential non-payroll budget reductions through a zero-based budgeting process while maintaining support for critical student services.

Tax Rate Will Remain Unchanged

As part of the budget planning process, the District presented a preliminary tax rate of $0.9294 per $100 of assessed valuation, consisting of a Maintenance and Operations (M&O) rate of $0.6853 and an Interest and Sinking (I&S) rate of $0.2441. The proposed rate remains unchanged from the previous year, however, the Board will consider adopting a lower overall tax rate as certified taxable values become available on July 25, 2026.

At present, the total tax rate has been lowered by more than 27% since 2021.

Debt Refunding Generates Savings and Preserves State Funding

In addition to approving the budget, trustees received information regarding a proposed bond refunding transaction designed to maximize state funding and reduce long-term debt. Under recent changes in state law, school districts must maintain an annual debt service payment equal to its debt service tax collections to receive the full amount of available Additional State Aid for Homestead Exemption (ASAHE) for eligible debt. Rather than paying off future debt early through a traditional debt defeasance, Carroll ISD plans to refinance certain outstanding bonds to add a new debt service payment during the 2026-27 fiscal year. This approach allows the District to receive approximately $809,000 in state funding while generating an estimated $4 million in long-term debt service savings.

District officials emphasized that the refinancing strategy is not new debt for taxpayers. Instead, it restructures existing debt obligations in a manner that complies with state requirements to continue reducing outstanding debt obligations and save taxpayer dollars. The proposed refunding transaction is expected to close prior to the adoption of the District's 2026-27 tax rate.

"The adoption of a balanced budget reflects our commitment to being good stewards of taxpayer resources while continuing to invest in the people and programs that make Carroll ISD exceptional," said Board Vice President Andrew Yeager.

Board President Cam Bryan reflected those same sentiments.

"This Board will continue to look for ways to reduce debt and responsibly allocate tax dollars where they matter most - supporting our programs and giving our students the best educational experience available. That will always be this Board's primary goal as we serve the community of Southlake Carroll," said Bryan.

The 2026-27 budget supports the District's strategic goal of optimizing, stewarding, and allocating resources to achieve programmatic objectives while maintaining the high standards of excellence expected by the Carroll ISD community.