Katy ISD reports $989M budget with $14M payroll increase amid financial challenges

Katy ISD's Board Work Study Meeting on March 24, 2025, spotlighted significant budget discussions, particularly regarding the district's payroll and financial outlook. The proposed payroll budget for the upcoming year is set at $989 million, reflecting an increase of nearly $14 million. This budget includes a substantial allocation of $520 million for teacher salaries, alongside $264 million for non-teacher salaries, which encompasses positions like counselors and librarians.

The meeting revealed a cautious optimism about the district's financial health, despite a projected deficit of $27 million for the current school year. Superintendent Pat Smith noted that underspending trends could mitigate this deficit, with an anticipated surplus of around $12 million from the previous year. He emphasized the importance of maintaining a healthy fund balance, ideally around 34%, to ensure financial stability and support for students.

Smith also addressed the complexities surrounding state funding and property value assessments, highlighting the ongoing challenges with the appraisal process and its impact on the district's budget. He expressed hope that state lawmakers would provide necessary funding relief, particularly in light of potential increases in the basic allotment for education.

In addition to budgetary matters, the board recognized the district's achievements, including a rebate from CenterPoint and multiple awards for excellence in financial services and energy efficiency. These accolades underscore Katy ISD's commitment to fiscal responsibility and operational excellence.

As the district prepares for the next fiscal year, the board remains focused on strategic financial planning to navigate the challenges ahead while prioritizing the educational needs of its students.