Cy-Fair ISD salaries could become less competitive without additional state funding

Trustee Julie Hinaman said CFISD used to consistently be one of the highest-paying districts in the region, but “[is] losing ground,” and is now ranked fourth or fifth compared to neighboring districts.

“I think we should do a pay increase even though it will take us further into deficit. But that’s why we have that little bit of extra money in our fund balance. And then we make the hard decisions in [20]26,” he said.

How we got here

State funding is primarily based on average daily student attendance numbers, which Smith said is about 2% less than it was before the COVID-19 pandemic, resulting in a $15 million loss in state funding. Additionally, student enrollment is expected to decline by about 1,123 students for the 2025-26 school year.

When it comes to local property taxes, the state mandates school districts compress their property tax rates when property values increase more than 2.5% from the previous year. Data shows a projected 3.38% increase in the taxable property values for 2025-26.

Also, by offering district homeowners a local optional homestead exemption of 20%, the district lost out on $63 million in property tax revenue in 2024, Smith said.

For FY 2024-25, the CFISD board approved a $1.16 billion budget, which included a projected $77.5 million shortfall. While employees received a 1%-2% raise, several budget cuts were made, and the board approved a property tax rate increase last fall.

What's next

The board will hold a special-called budget workshop May 22, and the budget is expected to be adopted June 23.