Texas school district prepares audit and budget adjustments for 2025-2026 school year

Katy ISD officials are gearing up for a significant property value audit set to begin in the upcoming 2025-2026 school year, a move expected to positively impact the district's financial outlook. During the Katy ISD Board Work Study Meeting on June 16, 2025, discussions highlighted the district's confidence in maintaining a healthy fund balance despite anticipated budget adjustments.

The board addressed concerns over a projected deficit, with assurances that historic underspending would mitigate any negative effects on the fund balance during the upcoming audit. "I'm very confident in that," stated a board member, emphasizing the district's financial stability.

Key topics included the potential impact of property value changes on state and local funding, particularly in light of a homestead exemption vote scheduled for November. While an increase in the exemption could affect tax rates, officials noted that it would not significantly alter the district's maintenance and operations budget.

Katy ISD remains the fastest-growing school district in Texas, with enrollment growth expected to continue despite a slower year recently. The board is closely monitoring student numbers, which will be clearer in the coming months.

As the district prepares for the next budget cycle, officials are also awaiting further guidance from the Texas Education Agency regarding recent legislative changes. "We're still finding stuff out," one member remarked, indicating that ongoing developments could influence financial planning.

The board plans to provide more detailed financial summaries in July and August, with a focus on the general fund, maintenance and operations fund, and child nutrition fund. As discussions continue, Katy ISD is poised to navigate the complexities of funding and growth while ensuring the district's financial health remains intact.