Katy ISD board of trustees reviewed two annual interlocal agreements totaling over $4 million for the 2025-26 school year with the Harris County Department of Education to serve students with specialized therapeutic needs at the May 5 work study meeting.

One of the contracts requires a roughly $400,000 increase from the 2024-25 school year, signaling the growth in students enrolled in special education services at KISD, said Gwen Coffey, assistant superintendent for special education.

What’s in the contract

Coffey said the first contract support services is for six students at the Academic Behavior School West, which is an off-campus instructional site that offers behavioral and emotional needs interventions that cannot be offered on a traditional campus.

The annual cost for this agreement is approximately $144,000, matching the 2024-25 contract total, Coffey said.


The second agreement was for occupational, physical and music therapists who work with students at KISD campuses who require the services per their individualized learning program, Coffey said.

The contract total for these therapy services increased from $3.2 million in the 2024-25 school year to approximately $3.6 million for the 2025-26, Coffey said. The increase accounts for the addition of one occupational therapist and assistant, and expanded service hours, Coffey said.

Coffey said that mental health services are not part of this contract, as those are provided internally by the district.

Who would benefit?


Coffey said that services outlined in the contracts are only added to a student’s IEP after an evaluation and team consensus during an Admission, Review, and Dismissal, or ARD, committee meeting when determining the student’s educational needs.

Legislative approach

Trustee Lance Redmon raised the possibility of 89th Texas Legislature’s move toward allocating special education funding based on the level and complexity of services, known as intensity-based funding, under Senate Bill 568, rather than the current flat rate per student.

Coffey confirmed that higher tiers of service—including the therapies outlined under the agreement—could lead to increased funding weights if the bill passes a House vote and receives Gov. Greg Abbott’s approval to become law, according to the Legislature website.


Coffey said that while the district does not currently bill private insurance for school-based therapy services, Medicaid reimbursement was a possibility, though she did not say how much the district may receive.

Next steps

The board will vote on the approval of both interlocal agreements at the May 12 board meeting, according to district documents.