The Dallas ISD Board of Trustees has approved a $1.8 billion budget for the 2026-2027 school year that raises starting teacher pay and lifts wages for campus support and central office staff.
The spending plan, approved Thursday, sets starting teacher pay at $68,000 and raises the district’s minimum hourly wage to $17.50, the district announced. Central staff not tied to an excellence initiative will receive 2% of the midpoint for both support and professional employees. Altogether, the compensation package totals $56.4 million.
District officials said the investments are aimed at helping Dallas ISD retain and recruit employees. The district reports one of the highest teacher retention rates in the Dallas-Fort Worth region and statewide.
The budget also reflects financial pressures facing public school systems across Texas, including growing recapture payments, lower state revenue, and shrinking student enrollment linked in part to falling 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 much of the state’s school funding is tied to attendance, drops in enrollment can sharply reduce district revenue. Recapture has also grown into a major line item as property values in the district have climbed. Dallas ISD is projected to send $73 million back to the state through recapture in 2026, up from $60 million this year.
Roughly 80 cents of every dollar the district spends goes to payroll, with 12 cents for contracted services, 6 cents for supplies and materials, and 2 cents for other costs.
“Our focus is on sustaining what matters most while being responsible stewards of the resources,” said Superintendent Stephanie S. Elizalde.
District leaders also reiterated the legal distinction between bond and operating funds following approval of the 2026 Bond. Bond money is restricted to capital projects such as construction, renovations, safety and security upgrades, transportation, and technology. Operating funds cover salaries, utilities, custodial services, and daily campus needs. Bond dollars cannot be used for salaries or operating expenses.
Trustees noted during budget discussions that Dallas ISD is among the largest recipients of Teacher Incentive Allotment funding in Texas. That money helps offset part of the district’s investment in teacher pay.
“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.
Over the past three years, the district has eliminated more than 250 central office positions and continues to review outside contracts and operating costs to identify additional savings.
“We are responsible for doing what’s best with the resources we have, for the kids we have,” said Trustee Mackey.
Officials said Dallas ISD aims to reach a balanced budget by the 2028-2029 school year while maintaining investments in students, staff, and campuses.