Killeen ISD is entering the 2026-27 fiscal year with a lower property tax rate, reduced spending and a significantly smaller planned deficit while continuing to invest in employees, instruction and student safety.
On Tuesday, the Killeen ISD Board of Trustees adopted a General Fund budget of approximately $502.9 million, about $17.6 million less than the previous year's adopted budget.
The district also reduced its planned General Fund deficit from approximately $4.2 million the prior year to $1.4 million, a reduction of about 67 percent as KISD continues working to more closely align ongoing expenditures with available revenue.
Even with the overall reduction in spending, the budget continues to prioritize KISD employees and directs resources to instruction, transportation, safety, and other areas that directly support students.
Employees will see continued investment in compensation, including a $14 minimum hourly wage, a 1 percent general pay increase, an additional $50 per month and a starting teacher salary of $59,400. About 82 percent of General Fund expenditures are dedicated to employee pay and benefits.
The budget also supports two additional teacher contract days focused on Tier I instruction, expanded instructional time in reading and math at middle schools, additional safety personnel and weapons detection systems, and continued transportation improvements, including Smart Tag bus safety and monitoring system and seat belt retrofits for about one-third of the district's bus fleet.
For taxpayers, trustees adopted a total property tax rate of $0.8622 per $100 of valuation, a 1.8 percent decrease from the previous year's rate of $0.8778. The maintenance and operations rate remains unchanged at $0.6682, while the debt service rate decreases from $0.2096 to $0.1940.
Based on the district's tax rate comparison, KISD's $0.8622 rate is the lowest among the seven area school districts.
The district also estimates that taxes on the average KISD residence will decrease from approximately $1,108 to $570. The estimate reflects both the adopted tax rate and changes affecting taxable home values, including the $140,000 homestead exemption.
The budget also maintains services that directly support students and families, including free breakfast at every KISD campus. Free lunch will continue at 34 qualifying campuses; free supper will be available to students at 45 locations, and meal prices will remain unchanged.
The 2026-27 fiscal year begins Sept. 1.
Academic Progress and the Work Ahead
Trustees also received an update Tuesday on Killeen ISD's 2025-26 state accountability results, which showed the district improving five points overall, from 74 to 79.
All four accountability domains improved, including a six-point increase in Academic Growth and five-point increases in both Relative Performance and Closing the Gaps.
Secondary campuses showed particularly strong progress. Ten of KISD's 12 middle schools improved their accountability scores, including Manor Middle School, which moved from an F to a C, and Rancier Middle School, which increased 16 points. All seven high schools either improved or maintained their scores, with three earning A ratings and no high school receiving a D or F.
District leaders emphasized that the focus now shifts from the ratings themselves to using the data to drive continued improvement. Learning Services is analyzing performance by campus, grade level, subject, teacher, team and student group; identifying areas requiring additional focus; aligning intervention and enrichment with student needs; and monitoring progress throughout the school year.
Campuses have also been grouped into tiers to provide targeted levels of support. Strategies for 2026-27 include expanded progress monitoring, structured literacy goals, a revised writing plan and a redesign of math instruction in grades 3-5.