On Thursday, the Board of Trustees approved the $1.8 billion 2026–2027 budget, including increases to starting teacher pay and salary raises for campus support and central staff.
These investments are designed to help Dallas ISD continue attracting and retaining employees while supporting students on campuses across the district. Dallas ISD continues to have one of the highest teacher retention rates in the Dallas-Fort Worth area and across Texas.
Under the new budget, the starting teacher pay is set at $68,000 and the district’s minimum hourly wage increased to $17.50. Central staff not on an excellence initiative will receive 2% of the midpoint for support (non-exempt) employees and professional (exempt) employees. In total, the budget includes a $56.4 million compensation package.
At the same time, the budget reflects several financial challenges affecting school districts statewide, including rising recapture payments, reduced state revenue, and declining student enrollment driven in part by demographic trends, including lower birth rates.
“It’s a national thing for public schools that enrollment is down because the birth rate is lower. It’s not because people are abandoning the public schools. It’s because there are fewer kids at those ages.” Trustee Micciche said.
Because state funding is largely tied to student attendance, enrollment declines can have a significant impact on district revenue.
For Dallas ISD, recapture has become a significant budget item because property values have increased substantially over time. As the district’s property wealth grows, the amount owed back to the state can increase.
In 2026, Dallas ISD is projected to send $73 million back to the state through the recapture system, compared to $60 million this year.
Even with those challenges, the majority of the district’s budget continues to directly support employees and campuses. For every dollar spent, approximately 80 cents goes toward payroll, while 12 cents supports contracted services, 6 cents covers supplies and materials, and 2 cents goes toward other costs.
“Our focus is on sustaining what matters most while being responsible stewards of the resources,” said Superintendent Stephanie S. Elizalde, Ed.D.
With the approval of the 2026 Bond, district leaders also continue to emphasize the difference between bond funds and operating funds.
Bond funds can only be used for capital projects such as school construction, campus renovations, safety and security improvements, transportation, and technology.
Operating funds cover day-to-day expenses, including teacher and staff salaries, utilities, custodial services, and other campus operations. By law, bond funds cannot be used for salaries or daily operating expenses. The district continues to see benefits from the Teacher Incentive Allotment, which provides additional funding for high-performing educators. During budget discussions, trustees noted that the district is among the largest recipients of TIA funding in Texas. These funds help support the district’s market-leading teacher compensation strategy, offsetting a portion of the district’s investment in teacher pay while strengthening efforts to recruit and retain top talent.
“Despite the financial challenges we face over the next several years due to limited resources, Dallas ISD is committed to the continued academic success of all our students.” said Eduard Ramos, Deputy Superintendent of Business Services.
As part of its long-term financial planning, Dallas ISD reduced more than 250 central office positions over the past three years and continues reviewing outside contracts and operational expenses to identify additional efficiencies.
“We are responsible for doing what’s best with the resources we have, for the kids we have,” said Trustee Mackey.
District officials said Dallas ISD’s long-term goal is to achieve a balanced budget by the 2028–2029 school year while continuing investments that support students, employees, and school communities.
