Katy ISD Chief Financial Officer Chris Smith delivered good news to the KISD board of trustees at its June 15 work study meeting: a budget adjustment of $34 million in the district’s favor, thanks to recalculations in the property tax value audit, restoring money that would have been received in the 2023-2024 school year. The one-time adjustment will move the current 2025-2026 budget from a $19 million deficit to a $6.8 million surplus, Smith said.

But the district is still projecting a deficit of $15.7 million for the 2026-2027 school year, Smith said. Falling enrollment means that the district receives less money from the state, whose funding contributions are based on average daily attendance.

As a result, the district will not be able to give employees raises as large as in recent years, officials said. A one per cent increase in compensation for all employees was proposed, along with two additional one-time lump sums of one per cent, to be paid in September and December. Each one percent is an $8 million expense to the district, Smith said.

The board was scheduled to vote on the measures at its regular meeting on June 22, after the Katy Times went to press for this issue.

Future board meetings are scheduled as follows:

· Work study meeting: July 20

· Regular board meeting: July 27