Cy-Fair ISD’s estimated shortfall for the general operating budget for fiscal year 2025-26 sits at $31.7 million, Chief Financial Officer Karen Smith said during the May 7 board work session.
With the end of the current fiscal year approaching, CFISD’s board of trustees will further plan the FY 2026-27 proposed budget May 21 at a special-called meeting.
Current situation
Since the previous budget update in April, the FY 2025-26 projected shortfall has decreased by $2 million. Attributing the change to moving expenditures from the general fund to grant funds with the capacity, Smith said this was offset by the decrease in enrollment and the expected payment by the teacher incentive allotment.
The district discussed holding a voter-approval tax rate election, VATRE, to raise the maintenance and operations, M&O, tax rate above the state threshold maximum compressed tax rate determined by the Texas Education Agency.
The plan
Texas school districts have the ability to raise a portion of their tax rate by 17 cents over the state threshold. District officials confirmed during the work session that the board was allowed to raise the M&O tax rate by five cents without requiring voter approval. However, an election is required to access the additional pennies.
Through a VATRE, the district could choose to increase by up to 12 pennies.
The districts would have to follow the following timeline in order to hold the VATRE in the November general election:
- Select an auditor by July 3 to perform an efficiency audit
- Call the election by Aug. 17
It would take at least seven pennies before the district is anywhere close to neutralizing the district's current situation, Superintendent Doug Killain said. However, Killain said staff is still going to try to zero-base the budget next year.
Looking forward
The special-called meeting will be held May 21 at 5 p.m. in the Mark Henry Administrative Building boardroom.
