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Katy ISD approves fiscal year 2026-27 budget with $25.7M shortfall

Katy ISD’s fiscal year 2026-27 budget includes a $25.7 million shortfall.

The approved budget includes a competitive compensation plan, health care program improvements and items aimed at prioritizing student and staff safety.

What you need to know: At an Aug. 24 meeting, Katy ISD board of trustees voted unanimously to approve the FY 2026-27 budget with a $25.7 million shortfall, a 63.69% increase to what was initially predicted in June at $15.7 million as previously by Community Impact.

Katy ISD Chief Financial Officer Chris Smith said this is the fifth year in a row the district enters the fiscal year with an unbalanced budget, although the deficit is anticipated to decrease or be erased over the course of the school year based on strategic cost savings and underspending.

On the horizon: The district’s proposed tax rate—$1.1171 per $100 valuation—is slated to stay the same since the 2023-24 school year. Katy ISD board of trustees is scheduled to adopt the tax rate at a Sept. 21 meeting.

 
Coming Soon
Better Baseball to open 1st Texas location in Katy

Sports retail store Better Baseball is set to open the brand’s first Texas store in Katy, officials confirmed.

Some context: Matthew Marks, general manager of store operations, describes Better Baseball as “a world class immersive experience, unlike anything they've seen in baseball.”

The store sells name-brand gloves, bats, catcher’s gear, hats and cleats, according to its website. Featured brands include Wilson, Rawlings, Louisville Slugger, New Balance, Adidas and Mizuno.

  • 2727 W. Grand Pkwy. N., Park Row

 
On The Transportation Beat
TxDOT proposes 3 reasonable alternatives for southern portion of Hwy. 36A

Texas Department of Transportation officials are seeking public input on three proposed routes for the southern portion of the Hwy. 36A project.

The southern portion of the project is expected to run from FM 1994 south of Needville to I-10 west of Katy with the goal of improving north-south mobility and connectivity.

What you need to know: TxDOT officials presented eight alternatives for the southern route in summer 2025, which garnered more than 4,900 participants who submitted over 680 comments with common themes including environmental resources, farmland and historic preservation.

Through the screening process, three reasonable alternatives have been identified to move forward, including:

  • Reasonable alternative 4, which was carried forward due to lower environmental impact and fewer potential displacements

  • Reasonable alternative 8, which was refined to align with the draft Fort Bend County Thoroughfare plan and is now reasonable alternative 8A

  • Reasonable alternative 9, which was developed in response to public comment to evaluate use of existing infrastructure

Get involved: The public is invited to submit comments through Sept. 4.

 
County Coverage
Harris County committee recommends 30% raise for treasurer amid $181 million shortfall

The Harris County salary grievance committee recommended a 30% raise for the county treasurer in a 6-3 vote Aug. 20.

What happened: County Treasurer Carla Wyatt made an appeal to the nine-member committee, asking for a 118% salary increase to bring her in line with the income of the county’s other elected officials. The committee did not meet Wyatt’s request, instead recommending a 30% pay bump to $181,411.

The impact: Wyatt’s request comes as the county is facing a $181 million shortfall. With the new fiscal year starting Oct. 1, OMB and the court will work to finalize the budget and mitigate the projected shortfall. The court is expected to set the tax rate at its Sept. 8 meeting and adopt the new budget Sept. 17.

 
Statewide News
Texas Department of Insurance must work to reduce home insurance costs, Gov. Abbott says

The Texas Department of Insurance must take action to promote competition and “prohibit excessive or unfairly discriminatory rate setting" in the state's homeowners insurance market, Gov. Greg Abbott said Aug. 24.

The background: Texans are paying the fourth-highest home insurance premiums in the nation, Community Impact previously reported. State data shows that the average Texas home insurance premium nearly doubled from $1,791 in 2016 to $3,506 in 2025.

The details: Abbott asked the TDI to prohibit insurers from using the age of a home and homeowners' personal data when setting rates; create a task force targeting insurance fraud; study the impact of inflated insurance claims; and require insurers to consider a homeowner's participation in a roof fortification program when writing policies.

Another perspective: "Under Greg Abbott, Texas has been one of the most expensive states in the country to own and maintain a home," Gina Hinojosa, the Democratic candidate for Texas governor, said in a statement. "If Abbott really wanted to lower costs, he would have done it in the last 12 years."

 

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Aubrey Howell
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Amy Martinez
General Manager

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