Montgomery ISD has joined other school districts in asking voters to raise its tax rate in hopes of recruiting and keeping staff, maintaining student programs and providing safety and security.
A Voter-Approval Tax Rate Election, also known as VATRE, requires districts to seek voter approval to raise the tax rate above a prescribed amount, according to a release from Montgomery ISD.
Basics of tax rate election
As the district faces a $4.3 million deficit for the 2024-25 school year, officials are asking voters to approve a proposition on Nov. 5 that would raise the maintenance and operations tax rate by $0.0425 — estimated to generate more than $5.5 million of new revenues to the current fiscal year, the district’s release states. The current rate is $0.7169, while the interest and sinking rate is $0.3743, which brings a total of $1.0912 per $100 property valuation.
The district’s total tax rate consists of two parts — the maintenance and operations tax rate covers general expenses such as salaries and instructional costs, while the interest and sinking rate is used to pay off debt for district facilities, the release states.
If voters approve Proposition A — the new tax rate — it is estimated that the tax impact would be $8.85 per month for a home valued at $350,000. Taxpayers that are older than 65 with a homestead exemption have their school taxes frozen and would not see an increase.
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This comes after other districts have taken similar measures.
Districts seek similar funding
Magnolia ISD also called for a local tax election in hopes of generating $7.4 million in funding for staff pay increases and additional constables for school safety.
In one of Bexar County’s larger districts, East Central ISD has asked voters on Nov. 5 to approve to raise its property tax rate by another 5 cents per $100 to pay for teacher and staff hiring, pay raises and security upgrades, taking advantage of state matching funds to generate a combined $6.6 million per year.
Like other districts, Montgomery ISD officials have cited state funding as one of the setbacks in “providing a safe, supportive, and secure environment” at the district. The state has not increased the basic allotment — amount of money per student — for school districts since 2019, which has been stated by many districts throughout their budgeting process for the 2024-25 fiscal year.
“To be clear, our funding challenges are not limited to the lack of additional funding from the state,” said Superintendent Mark Ruffin in a written statement. “Add to that inflation, rising special education costs, and unfunded mandates like HB3 that require districts to have an armed officer on all campuses. Providing officers on all campuses is something we will always commit to, but we received just $240,000 in our safety and security allotment last year. Our MISD Police Department payroll was over a million dollars. We have worked diligently to minimize our deficit without negatively impacting our student programs or our people.”
‘We are already as lean as possible’
This is a first for the district to call for a tax election, the district’s release states.
And since 2019, the district has decreased the tax rate, despite passing a $326 million bond package in 2022, said Chief Financial Officer Ben Davidson in a written statement.
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“Our taxpayers realized a historic tax decrease of over 18 cents last year and saw their homestead exemptions increase to $100,000,” Davidson said.
Board Vice President Laurie Turner said that voters were made aware during the 2022 bond election that a small tax increase may be necessary to support the measure, “however, due to increased property values, the (interest and sinking) rate has not increased from the passing of the bond.”
Prior to calling for the tax rate election, the district conducted an audit that compared revenue and expenditures to 10 other districts. According to the district’s release, the findings showed that the Montgomery ISD receives $1,517 less per student than other districts “and MISD expenditures per student are $898 less than the peer districts.”
“The audit findings reinforced what we already knew at MISD,” said Board Secretary Eddie Winn in a written statement. “We are already as lean as possible. We get less, and we spend less than other districts.”
If the proposition passes in November, the state would also be required to match the $5.5 million the new tax rate is expected to generate.
“It’s clear that MISD is not alone in facing financial challenges; many districts across Texas are in similar situations, said Board President Matt Fuller in a written statement. “In 2024, operating costs such as salaries, supplies, insurance, and fuel continue to rise, while state funding for school operations has not kept up — meaning we’re dealing with 2024 expenses but receiving 2019 funding.”
For more information, visit misd.org.
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