Allen ISD faces a $5.3 million general fund shortfall in the 2026-27 school year, Acting Superintendent Kim McLaughlin told local business leaders at a State of Education event Wednesday, Sept. 23.
McLaughlin outlined the district's budget pressures and legislative priorities during a panel hosted by the Allen Chamber of Commerce, first reported by Community Impact. Collin College President Neil Matkin and Lovejoy ISD Superintendent Katie Kordel joined her on the panel.
The shortfall stems from a $4.5 million drop in projected revenue compared to the 2025-26 budget, driven in part by declining student enrollment along with rising fuel and maintenance costs.
The district's 2026-27 budget, adopted by the board of trustees June 15, projects more than $226 million in expenditures against nearly $221 million in revenues. It also accounts for a 2% pay increase for all staff, approved unanimously by the board May 11.
Enrollment keeps falling. The district counted 20,140 students in fall 2025, down from 21,580 in 2020. Demographic researcher Brent Alexander told the board at a Feb. 23 meeting that enrollment could drop to between 18,000 and 19,000 over the next four to five years if trends continue.
The gap between graduating seniors and incoming kindergarteners illustrates the problem: the district reports about 1,700 seniors and roughly 1,150 kindergarteners.
McLaughlin pointed to the Allen Advantage open-enrollment program as one response. The program allows out-of-district students to attend Allen ISD schools at no tuition cost. It soft-launched in November 2025 with 20 students. About 250 out-of-district students are now enrolled through the program, McLaughlin said.
"We are watching our enrollment decline as well … [We're] trying to come up with strategies in order to get people to stay here and get students to come into our district," she said.
Allen ISD Chief Communications Officer David Hicks attributed the enrollment decline to high home prices limiting younger families and longtime residents "aging in place" after their last child graduates, in a January 2026 Community Impact article.
McLaughlin also previewed the district's priorities for the 2027 state legislative session, calling for "sufficient and sustainable funding" to meet state mandates and keep teacher pay competitive. Retention and recruitment of teachers and staff will be a central focus, she said.
The district earned an overall "A" accountability rating from the Texas Education Agency (TEA) on Aug. 14, placing it among 17% of Texas districts at that level. Fourteen campuses received an A rating, and the district collected 38 Distinction Designations across 15 campuses.
McLaughlin urged business leaders to advocate for the district during the upcoming legislative session and expand mentorship partnerships with Allen ISD schools.
