CYPRESS, Texas – The Cypress-Fairbanks ISD Board of Trustees adopted a $1.25 billion budget and staff compensation plan for the 2026-27 school year in a 6-1 vote during its regularly scheduled board meeting June 22. Trustee Christine Kalmbach cast the lone dissenting vote.
The general fund budget includes $508 million in local revenue, $651million in state revenue and $6.7 million in federal revenue and other sources, bringing CFISD’s total revenue to $1.1. billion. Of the total $1.25 billion budget, 65% — roughly — is directed toward instruction.
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Projected $80.9 million deficit
The district’s budget agenda presented a projected deficit of $80.9 million for the 2026-27 school year. CFISD officials point to several factors driving the shortfall.
CFISD documents state state funding increases have not kept pace with inflation, and the district faces state mandates without sufficient accompanying funding.
The district added that a 20% local optional homestead exemption has further reduced local revenue. The district has also seen decreases in enrollment and average daily attendance, as well as a decline in revenue from the School Health and Related Services, or SHARS, program — a federal Medicaid reimbursement program that allows schools to recover costs for providing health services to Medicaid-eligible students with disabilities.
In a CFISD press release, Dr. Douglas Killian, superintendent of schools, said “While public education benefited from a historic $8.5 billion state investment, rising costs for basic operations like utilities and fuel have outpaced those gains, resulting in a projected $80.9 million deficit for CFISD.”
12 cent tax hike?, Staff stipends
Regardless of any future tax election outcome, all full-time employees are guaranteed a one-time $500 recruitment and retention stipend. Teachers will also receive step pay increases based on years of experience, and all employees will see increased district contributions toward health insurance.
The budget also includes two additional one-time stipends contingent on the board calling for a 12-cent tax rate increase election — known as a Voter-Approval Tax Rate Election, or VATRE — and its passage by voters in November 2026.
This means a $126 increase annually in school district property taxes for a home $350,000 valued home.
If approved, full-time hourly and paraprofessional employees would receive a $2,000 stipend, while all other full-time employees would receive a $1,000 stipend. Both would be paid by Feb. 28, 2027.