Katy ISD's Board of Trustees approved a $1.48 billion budget for the 2026-27 school year on Aug. 24. The spending plan holds the property tax rate flat for the third straight year and funds pay raises for teachers and staff across the district.

The budget covers a projected 95,000 students. It includes a $1.17 billion general operating fund, plus food service and debt service funds, according to the district's announcement. Eighty-three percent of spending goes toward student instruction, classroom operations and student support.

The total tax rate stays at $1.1171 per $100 of property valuation, split between a $0.7271 maintenance and operations rate and a $0.3900 interest and sinking rate. That rate has held steady since the 2023-24 school year, Community Impact reported.

The budget carries a projected $25.7 million operating deficit. Chief Financial Officer Christopher Smith said the district rarely spends its entire budget because of strategic cost savings and other efficiencies. In each of the past three audited fiscal years, Katy ISD adopted a deficit budget but closed the year balanced while adding to its fund balance. District officials expect that pattern to continue when the 2025-26 fiscal year closes Monday, Aug. 31.

The district's taxable property value grew just 1.5% for the coming year. Enrollment is projected to hold roughly steady.

Teachers and staff will see a 1% midpoint salary increase, which becomes part of the permanent pay structure. Employees will also receive two separate one-time 1% lump-sum payments, one in August and one in December. The board unanimously approved that compensation plan on June 22, which also raised the starting teacher salary to $66,550.

Board President Lance Redmon said in June, when the pay plan was approved, that the raises reflect the district's commitment to keeping experienced educators in Katy ISD classrooms.

On the revenue side, Director of Budget and Treasury Esperanza Rios said general fund revenues are budgeted at $1.14 billion against $1.17 billion in expenditures. The food service fund budgets $53.2 million in revenue and $60.7 million in spending. The debt service fund expects $259.9 million in revenue and $257.3 million in expenditures, adding $2.6 million to its fund balance. Smith said $34.2 million of debt service revenue comes from homestead exemption increases approved by voters, with the state replenishing those lost tax dollars.

The board is scheduled to formally adopt the tax rate at its Sept. 21 meeting, according to Community Impact.