Katy ISD’s fiscal year 2026-27 budget is now expected to see a $24.9 million shortfall, up from the $15.7 million figure provided in June.
The overview
At the July 20 work study meeting, Katy ISD Chief Financial Officer Chris Smith described the budget as “very manageable” in spite of the deficit.
Smith said the revenues shared during the presentation were conservative due to several components such as value estimates, interest rates, special education funding, property value audits and average daily attendance currently being unknown.
Negative factors contributing to the budget include flat enrollment, Katy ISD operating under a fixed income and inflationary impacts.
Smith said outlooks for the general fund, food service fund and the debt service fund as of Sept. 1 include a:
- $374.4 million fund balance with total expenditures equaling $1.16 billion and total revenues reaching $1.14 billion
- $9.2 million food service fund balance with total expenditures equaling $60.7 million and total revenues reaching $53.2 million
- $65.9 million debt service fund balance with total expenditures equaling $255.8 million and total revenues reaching $261.5 million
On the horizonAssistant Superintendent of Finance Jamey Hynds said staff recommends a budget adoption timeline where an official notice for the budget and tax rate public hearing will be posted on the district's website on August 13.
The public hearing and adoption of the budget is scheduled for August 24, while the tax rate is expected to be adopted on September 28.
The board of trustees will make a final decision on the timeline at its July 27 meeting.
