The board of trustees will consider calling for a VATRE at the Aug. 18 board meeting, which is the last day to call for an election on the November ballot.
What’s happening?
Communications Director Tim Savoy said the board’s proposal would raise the current maintenance and operations rate by as much as 12 cents. If approved by voters, that could increase the current fiscal year 2024-25 tax rate from $1.1546 per $100 property valuation to $1.2746 per $100 property valuation if the board were to call for the full 12-cent addition.
Although higher than the current tax rate, the potential increase would be lower than fiscal year 2022-23's rate of $1.3423 per $100 property valuation. The tax rate for fiscal year 2023-24 was lower at $1.1569 per $100 property valuation.
The M&O tax rate could generate up to $24 million in additional operational revenue, according to the district website. M&O covers operating expenses such as teacher and staff salaries, utilities, bus fuel, supplies, student activities and more.
The M&O tax rate is separate from the interest and sinking tax, which is typically reserved for debt service issued on bonds. Bonds, such as the recent May 2025 bond, are used to fund capital expenses such as new schools, buses, equipment and other long-term assets and district facilities.
The why
Savoy said the conclusion of Texas' 89th legislative session triggered the need for a potential tax rate increase.
“We’ve been using our fund balance to keep programs and staffing intact since 2019, hoping that for the past three sessions, the legislature would increase the basic student allotment to match inflation or provide some inflation relief,” he said in an email to Community Impact. “They only raised the basic allotment by $55 per student, which doesn’t make our current level of staffing and services sustainable without the increased tax rate.”
The increased rate could fund raises for employees not included in House Bill 2, which allocated money for experienced teachers, as well as educational programming and other operating costs, the HCISD website states.
HCISD approved its 2025-26 budget in late June, following a period of projected shortfall. While the board was able to meet a balanced budget, per state law, the district anticipated using fund balance funds to address the standing deficit, as previously reported by Community Impact.
Stay tuned
If the board calls for the VATRE, voters within the Hays CISD district boundaries will vote on the proposed tax rate increase Nov. 4.
Savoy said district officials are still discussing the VATRE and its proposed rate. The board will discuss the item at its Aug. 18 meeting at 5:30 p.m. in the Hays CISD Merideth Keller Board Room, 21003 I-35, Kyle.
