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Homeowners in Hays CISD may see a decrease in their tax bill, according to documents presented at a June 29 meeting.
The HCISD board of trustees approved the fiscal year 2026-27 budget at the meeting.
The overview
The general fund budget includes $275.42 million in expenditures and $287.68 million in revenues, resulting in a surplus budget.
The largest expenditure by function is instruction, at $159.59 million. This is a $5.33 million decrease from last year.
"Payroll is the largest part of our expenditures at 85%," Chief Financial Officer Deborah Ottmers said.
The general operating budget also includes:
The projections
The proposed tax rate for FY 2026-27 is $1.1546 per $100 of valuation, which is unchanged from the previous rate. This includes a maintenance and operations rate of $0.6669 and an interest and sinking rate of $0.4877.
Although the district is not proposing to change the tax rate, homeowners may pay less in school district taxes due to decreased home values. A homeowner of a property with a median taxable value of $182,110 could expect to pay roughly $2,103 in taxes. This is about an $80 decrease from FY 2025-26, when the median taxable homestead value was $189,550.
The background
HCISD asked voters to approve a higher tax rate last November to support district operations following several years of dwindling fund balance. Voters rejected the increase, and the district announced over $12 million in budget cuts in March. The cuts include the loss of 125 positions and the suspension of 970 stipends, directly affecting more than 1,000 employees.
The district will add the $12.25 million to the fund balance each year for the next five years. A district’s fund balance should be able to cover up to three months of operational costs, according to HCISD officials. For HCISD, this number is approximately $65 million, according to Community Impact reporting. By 2031, the district anticipates rebuilding the fund balance to $90.14 million, according to a previous district presentation.
The HCISD board will approve the tax rate in August after receiving the maximum compressed rate from the Texas Education Agency.
