– At its August 25 meeting, the Katy ISD Board of Trustees approved a $1.15 billion operating budget for the 2025–2026 fiscal year. The budget is supported by a proposed tax rate of $1.12, which the Board reviewed earlier in the month and is set for formal approval in September.
While House Bill 2 from the 89th legislative session provided new funding for school districts, its impact has been significantly diminished by inflation, fast-paced growth and the absence of state-funded cost adjustments in recent years. As a result, Katy ISD is currently projecting a $24.9 million budget deficit. However, district officials report that this shortfall is expected to be reduced, or potentially eliminated, through strategic cost savings, underspending and other efficiencies over the course of the school year. Katy ISD Chief Financial Officer Christopher Smith explained that the budget is a spending backstop, and the district does not typically spend the entire budget.
HB2’s state support for salary increases boosted pay for some teachers this school year, though early-career educators were not awarded state-funded pay increases. To support those teachers, Katy ISD funded salary increases with local dollars. In addition, other employees, excluding administrators, received a 3% pay increase with 1.3% funded by HB2 and the remaining 1.7% funded by Katy ISD. Administrators were provided with a 3% increase, funded entirely by Katy ISD…