The Killeen Independent School District Board of Trustees on Tuesday reviewed ongoing planning for the district’s Fiscal Year 2027 budget as district leaders continue preparing recommendations for board consideration later this summer.
Chief Financial Officer Kallen Vaden provided trustees with an overview of the budget development process and the financial factors shaping the proposed 2026-2027 budget. Budget planning began earlier this year and is based on student enrollment projections, staffing needs, projected revenuesand anticipated expenditures.
District leaders reviewed several challenges affecting school finance in Killeen ISD and across Texas, including declining enrollment trends, rising operational costs and continued reductions in federal funding sources. KISD is projected to lose approximately $31 million in federal Impact Aid funding over the next five years while continuing to absorb increased costs associated with transportation, insurance, utilities, special education services and facility maintenance.
The presentation also highlighted the importance of student attendance, noting that even modest improvements in average daily attendance could generate millions of dollars in additional state funding to support district operations and student services.
Despite ongoing financial pressures, district officials noted that Killeen ISD continues to maintain one of the lowest tax rates in Central Texas while investing in students, staff and facilities. The district’s starting teacher salary remains the highest in Region 12, and officials continue to develop budget recommendations that support student achievement while maintaining long-term financial stability.
Trustees are expected to continue reviewing budget assumptions and updated revenue and expenditure projections throughout the summer before adopting a final budget in August.
In other business, the Board approved the purchase of three new school buses and two Ford F-250 crew cab trucks through the Texas BuyBoard Purchasing Cooperative.
The purchase includes two 72-passenger diesel school buses, one 54-passenger diesel school bus equipped with three wheelchair spaces and two F-250 trucks. The vehicles will replace aging fleet assets that have exceeded or are approaching the district’s established replacement cycle of 12 years or 200,000 miles.
Killeen ISD currently operates a transportation fleet of 278 school buses and 238 district vehicles. District officials said replacing older vehicles helps improve safety, reduce maintenance costs and support reliable transportation services for students and staff.
The estimated cost of the purchase is approximately $650,000 and will be funded through money already budgeted for vehicle replacement during the 2025-2026 school year. The purchase falls within the district’s $700,000 fleet replacement budget and required board approval under district purchasing policies.