Katy ISD Board Approves ’26-27 Budget, Reviews Proposed Tax Rate

KATY, TX [August 24, 2026] – The Katy ISD Board of Trustees approved a $1.17 billion General Operating Fund budget for the 2026 – 2027 fiscal year at its August 24 meeting, part of a $1.48 billion total budget that also funds food service and debt service. The budget is supported by a proposed total tax rate of $1.1171 per $100 of valuation — unchanged from last year. The Board reviewed the proposed rate earlier this month and is scheduled to formally adopt it in September.

The 2026 – 2027 budget prioritizes the classroom and student success, with 83% of expenditures dedicated to student instruction, classroom operations and student support. It includes a 1 percent midpoint pay increase for teachers and employees. In addition, employees are scheduled to receive two separate one percent lump-sum payments, one in August and one in December of 2026.

“We remain committed to being responsible with our resources, ensuring students continue to receive the high-quality education our community expects and supporting our dedicated teachers and staff,” Katy ISD Board President Lance Redmon said.

While the District is projecting a $25.7 million operating budget deficit, it is expected to be reduced, or even eliminated, over the course of the school year. Katy ISD Chief Financial Officer Christopher Smith explained that the District rarely expends its entire budget due to strategic cost savings, underspending and other efficiencies. In each of the past three audited fiscal years, the District adopted a deficit budget but ultimately closed the year with a balanced budget while adding to its fund balance. District officials expect to continue that trend for a fourth consecutive year when the 2025 – 2026 fiscal year closes Aug. 31.

Budgeted student enrollment for 2026 – 2027 remains relatively consistent with the 2025 – 2026 school year. The District’s taxable property value grew by just 1.5 percent. Katy ISD maintains a competitive compensation and benefits program for employees and continues to work toward reducing its budget deficit through transparent and disciplined spending.

The Katy ISD Board voted to approve the 2026 – 2027 budget, tailored to serve a projected 95,000 students this year.

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