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Cy-Fair ISD’s projected shortfall for fiscal year 2026-27 is $67.4 million, Chief Financial Officer Karen Smith said at the May 21 special-called budget workshop.
The estimated shortfall for the fiscal year 2025-26 has not changed since the last budget update on May 7, Smith said.
Current situation
The issues the district is seeing regarding the fund balance is a revenue issue, not overspending, Superintendent Doug Killian said.
Killian said with a voter-approved tax rate election, or VATRE, the district could raise the maintenance and operations, or M&O, tax rate by up to 12 cents. Killian originally discussed a VATRE at the May 7 work session, as previously reported by Community Impact.
Without any changes to their revenue, Killian said the district would have to look at cutting programs and people, since personnel is a large part of their budget.
The conditions
The average funding per student from M&O taxes revenue in Houston area school districts with over 10,000 students is $11,165 for FY 2025-26, CFISD works with $9,798 per student, Smith said.
With increasing inflation and fuel costs still an issue, Smith said schools don’t have the ability to raise prices to offset those costs like business owners do.
The approach
The board’s FY 2026-27 budget priorities includes:
“What the board put as their priorities would be things that we would love to do, and we think it's important,” Killian said. “[We] just don't have any money to do it.”
The decision
The board reached majority decision over the following prioritiy options to be added to the FY 2026-27 budget proposal:
“I care about our teachers, I care about our staff, this is a tough decision,” LeCompte said. “I think this is the best option for us right now.”
Looking ahead
Trustee Justin Ray said the goal for the FY 2026-27 budget is flexibility in light of future unknowns, such as future legislative decisions and any potential VATRE election decisions. Preserving as much fund balance as possible could make any potential cuts less egregious, Ray said.
The FY 2026-27 budget proposal will be presented to the board in June. The next scheduled board work session will be held in the Mark Henry Administrative Building Board Room at 6 p.m. on June 18.
