KATY (Covering Katy News) - The Katy Independent School District Board of Trustees was aware that paying former Superintendent Lance Hindt two years salary and benefits as severance would result in the district having state funding reduced. The school district says Hindt's separation package was part of his original contract and the board essentially had no choice but to live up to the deal. Texas Education Agency reduces funding when a superintendent's exit package is worth more than one year's salary and benefits.
According to a letter from Texas Education Agency to Katy ISD, the total amount of the reduction was $513,745. The letter was dated May 31, 2019.
"When the former superintendent was hired by Katy ISD in 2016, he and the board negotiated and executed a contract which had a two-year separation clause," said a statement from Katy ISD. "In 2018 the Katy ISD Board and former superintendent made a decision to separate. As required by the contract, a two-year separation payment was paid."
The school district says it was aware that the Hindt separation agreement would trigger the reduction in funding.
"It was expected that the District’s Foundation School Program funds would be reduced for the 2018-2019 budget year due to that agreement," the Katy ISD statement said.
The school district says it alerted the state of the two year severance package after it was executed and planned accordingly for the reduction in state aid.
"The district was aware in 2018 and developed a balanced budget. No program lost funding in 2018-19," said a statement from Katy ISD.
Local media reports have put the value of the Hindt separation package at about $750,000.