KATY, TEXAS — Katy Independent School District trustees had a proposed 2026–27 budget with approximately $1.17 billion in general-fund spending on their agenda Monday evening. The financial plan includes employee raises and the anticipated use of $25.7 million from district reserves.
The Katy ISD Board of Trustees’ Aug. 24 agenda called for a public hearing on the proposed budget and tax rate, followed by consideration of the district’s official 2026–27 budget.
As of 9:50 p.m. Monday, Katy ISD’s financial website continued to identify the document as the proposed budget, and the district had not posted an official announcement confirming the result of the vote.
The Katy News will update this report when the district publishes the final action taken by trustees.
Proposed General-Fund Budget Totals $1.17 Billion
The proposed general operating budget includes approximately:
- Revenue: $1.14 billion
- Expenditures: $1.17 billion
- Anticipated use of fund balance: $25.7 million
A school district’s fund balance functions as a financial reserve. It can help cover unexpected expenses, delayed revenue or temporary budget shortfalls.
However, continued reliance on reserves can become difficult to sustain if recurring operating costs consistently exceed recurring revenue.
Residents can review the district’s proposed 2026–27 budget and supporting financial documents through Katy ISD’s Financial Services Department.
Is the Katy ISD Tax Rate Changing?
Katy ISD’s proposed total property-tax rate is $1.1171 per $100 of taxable property value.
The proposed rate includes:
- Maintenance and Operations: $0.7271
- Interest and Sinking: $0.3900
- Total proposed rate: $1.1171
The proposed overall rate is the same as the rate adopted for the previous year.
Maintenance and Operations revenue supports the district’s daily expenses, including salaries, classroom programs, utilities and campus operations.
Interest and Sinking revenue is used to repay debt associated with voter-approved school bonds.
An unchanged tax rate does not guarantee that an individual homeowner’s school-tax bill will remain unchanged. The final amount owed can rise or fall when a property’s taxable value or exemptions change.
The Aug. 24 agenda included a public presentation and hearing on the proposed tax rate. An official announcement confirming the final tax-rate action had not been posted Monday night.
Employee Raises Were Approved in June
Employee compensation is one part of the budget that trustees have already approved.
The district’s 2026–27 compensation plan provides classroom teachers and other employees with a 1% midpoint pay increase funded through the general operating fund.
Employees are also scheduled to receive:
- A one-time 1% lump-sum payment in August
- A second one-time 1% lump-sum payment in December 2026
The midpoint increase becomes part of the district’s ongoing salary structure. The lump-sum payments are one-time expenses and do not become part of an employee’s base salary.
The approved plan also increases Katy ISD’s starting teacher salary to $66,550.
Additional details are available in the district’s official 2026–27 compensation announcement.
Food-Service Fund Also Faces a Shortfall
The proposed food-service budget includes approximately:
- Revenue: $53.2 million
- Expenditures: $60.7 million
- Anticipated use of food-service fund balance: $7.6 million
The food-service fund is maintained separately from the district’s main operating fund and is restricted to expenses associated with school nutrition services.
Debt-Service Fund Projects an Increase
The proposed debt-service budget includes approximately:
- Revenue: $259.9 million
- Expenditures: $257.3 million
- Projected increase in fund balance: $2.6 million
Debt-service revenue is restricted primarily to repaying principal and interest associated with voter-approved bonds.
What Katy Taxpayers Should Watch Next
The most important remaining questions include:
- Whether trustees approved the budget as presented or made changes
- Whether the final budget still requires $25.7 million from general-fund reserves
- When trustees will formally adopt the property-tax rate
- Whether enrollment or state-funding changes will affect projected revenue
- How the district plans to reduce future operating shortfalls
- Whether the financial plan will affect staffing, class sizes or student programs
Katy ISD is required to make an archived video of the meeting available online within seven days. Residents can check the district’s board-meeting video page for the recording.
The Katy News is monitoring the district’s official records and will update this article when the budget vote and final tax-rate status are confirmed.
