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Katy ISD’s fiscal year 2026-27 budget includes a $25.7 million shortfall.
The approved budget includes a competitive compensation plan, health care program improvements and items aimed at prioritizing student and staff safety.
What you need to know
At an Aug. 24 meeting, Katy ISD board of trustees voted unanimously to approve the FY 2026-27 budget with a $25.7 million shortfall, a 63.69% increase to what was initially predicted in June at $15.7 million as previously by Community Impact.
Katy ISD Chief Financial Officer Chris Smith said this is the fifth year in a row the district enters the fiscal year with an unbalanced budget, although the deficit is anticipated to decrease or be erased over the course of the school year based on strategic cost savings and underspending.
Smith said 83% of the budget is being spent on instruction, classroom operations and student support.
The budget also represents “a very slight decline in enrollment,” no new campuses opening and a 1.5% tax base growth.
The breakdown
Katy ISD’s total budget for 2026-27 is $1.48 billion with general fund revenues budgeted at $1.14 billion and expenditures at $1.17 billion, according to an Aug. 24 news release.
The expenditure budget will fund districtwide salaries and staff benefits, alongside separate 1% lump-sum payments to be given in August and December.
Meanwhile, the proposed food service budget revenues are at $53.2 million and expenditures at $60.7 million. Additionally, the fund is expected to use $7.6 million of fund balance.
The proposed debt service budget revenues are budgeted at $259.9 million and expenditures of $257.3 million. The fund is scheduled to show an increase to the fund balance of $2.6 million.
Smith said $34.2 million of the debt service fund revenue comes from increases in homestead exemptions which were approved by voters and the state replenishes the lost tax dollars.
Keep in mind
The district’s proposed tax rate—$1.1171 per $100 valuation—is slated to stay the same since the 2023-24 school year.
On the horizon
Katy ISD board of trustees is scheduled to adopt the tax rate at a Sept. 21 meeting.
