Katy ISD officials predict $24.9M budget shortfall ahead of upcoming budget adoption

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

Assistant 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.