KILLEEN, Texas — Killeen Independent School District is entering the 2024-2025 fiscal year with a $546 million budget.
This includes a pay raise for all employees, the addition of 21 police officers and no cuts in positions, according to KISD.
The budget, adopted by the school board on Tuesday, August 27, includes a planned 2.8% deficit—$4 million in the general fund and $13 million in the school nutrition fund. These deficits will be offset by the district's state compensatory education fund balance and school nutrition fund balance. To use these reserves, the district must spend more than it receives in revenue.
“We’re really in a good spot, especially compared to other districts across Texas,” Superintendent Jo Ann Fey said. “This was a true team effort to get to this point, and I appreciate the leadership shown by our board. Their work to set district goals and priorities helps serve as a North Star as we decide how to allocate our finite resources.”
Budget discussions began in March, with initial projections showing a $16.9 million shortfall. Through strategic cuts, reallocations, and fund transfers, the district was able to finalize a balanced budget.
Chief Financial Officer Kallen Vaden highlighted three key actions that helped reduce the deficit. First, the district utilized additional federal funding after all KISD schools were classified as Title 1 campuses. Second, Fey directed district administration departments to cut their budgets by 20%, saving $1 million. Finally, the district used the strategic facilities fund, previously used to finance new schools, to cover building maintenance and repairs.
The board also set a new tax rate of $0.8758 per $100 of assessed property value, which includes $0.6682 for maintenance and operations and $0.2076 for debt service. This results in an average tax increase of $189 for homeowners, with $34 due to the tax rate adjustment and $155 due to rising home values, as assessed by the Bell County Tax Appraisal District.
The budget also adjusts the estimated property tax revenue collection rate from 98% to 99% and anticipates an increase in interest revenue. However, Vaden noted that this does not equate to additional funds for the district.
“When tax revenue goes up, a school district’s state aid goes down almost proportionately,” Vaden said. “The district receives the same revenue per student, regardless of whether it comes from state or local sources.”
The board approved a 4% pay increase for non-exempt employees in July, including paraprofessionals and auxiliary staff such as custodians, bus drivers, and school nutrition workers. Exempt employees, including teachers and other professional staff, received a 3% raise, bringing the starting salary for beginning teachers to $58,000.
“Our budget concerns are not over, and we will continue to engage our board and community in conversations as we work to align the district’s resources with our current enrollment and prepare for the potential loss of federal Impact Aid in the future," Fey said.