FORT BEND ISD (Covering Katy News) – Fort Bend ISD’s Board of Trustees approved a 7-cent property tax increase using what is called "disaster pennies" at Monday night’s meeting to support the district’s $901.6 million operating budget for the 2025-26 school year.
The school district is using Hurricane Beryl as the declared disaster to implement the tax rate increase through "disaster pennies." This temporary increase is permitted by state law to help school districts recover from natural disasters without requiring voter approval.
The newly adopted tax rate of $1.0569 per $100 valuation includes the Maintenance and Operations (M&O) rate of $0.7869, which covers the district's operational expenses, and an Interest and Sinking (I&S) rate of $0.2700, which is designated for the repayment of bonds issued by the district.
The new rate represents a 3.3 percent tax increase adding approximately $350 a year on a home valued at $500,000.
However, this could change if Senate Bill 4 passes in the November election, as it would raise the statewide homestead exemption to $140,000, potentially reducing some homeowners' overall property tax burden.
The new tax rate will provide the district with a projected $7.5 million surplus, according to FBISD’s Chief Financial Officer Bryan Guinn.
FBISD Board Members approved the 2025-26 operating budget in June which includes funding for a new compensation plan to help retain and attract staff.