Katy ISD families will see 83 cents of every operating dollar go toward student instruction, classroom operations and student support next school year after the Board of Trustees approved a $1.48 billion total budget on Monday, Aug. 24.
The spending plan, which covers the district's approximately 96,000 students across 79 campuses, projects a $25.7 million deficit in the $1.17 billion General Operating Fund. That gap will be covered by drawing down reserves, though district officials say they expect the shortfall to shrink before the fiscal year ends.
Chief Financial Officer Christopher Smith has said the district rarely spends its entire adopted budget because of cost savings and underspending, according to My Neighborhood News. In each of the past three audited fiscal years, Katy ISD adopted a deficit budget but finished with a balanced ledger while adding to its fund balance. Officials expect a fourth consecutive year of that pattern when the current fiscal year closes Aug. 31.
Board President Lance Redmon said the district remains committed to responsible spending while maintaining the quality of education families expect and supporting teachers and staff.
What teachers and staff get
The budget funds a 1% midpoint pay increase that becomes part of base salary for all employees. On top of that, staff will receive two separate one-time 1% lump-sum payments in August and December. Starting teacher salary rises to $66,550, according to The Katy News.
The raises are real money. When the board unanimously approved the compensation plan in June, Redmon called it an investment in "attracting, rewarding and retaining the talented professionals" who serve Katy ISD students.
Tax rate unchanged, but bills may vary
The proposed total tax rate holds at $1.1171 per $100 of taxable value, split between a $0.7271 maintenance-and-operations rate and a $0.3900 debt-service rate. The board did not formally adopt the rate Monday; that vote is expected at a September meeting.
Even with a flat rate, individual tax bills can shift based on changes in a home's taxable value or exemptions. The district's overall taxable property value grew just 1.5% this year, limiting new revenue that could offset rising costs.
Where the rest of the money goes
Beyond the general fund, district budget documents presented at an Aug. 17 work study by Director of Budget and Treasury Esperanza Rios show a $60.7 million food-service expenditure plan that will draw $7.6 million from its own reserves, and a $257.3 million debt-service fund that projects adding $2.6 million to its balance.
Enrollment is budgeted to remain roughly flat compared with 2025-26.
The board is expected to formally set the 2026-27 tax rate at a September meeting.
