The Hays CISD board of trustees voted unanimously to call for a tax rate election, or TRE, later this year, which would raise the property tax rate for property owners within the district.
HCISD officials said the decision comes from a need to address financial burdens and a tight budget.
Voters will decide in November if the proposition passes.
The details
The proposed tax rate would jump to $1.2746 per $100 valuation. That’s up 12 cents from the current tax rate of $1.1546 per $100 valuation.
The higher maintenance and operations tax rate would result in an estimated $26 million in additional operational revenue according to the HCISD website, which includes covering expenses such as staff salaries, school supplies, utilities and more.
The maintenance and operations rate is separate from the interest and sinking rate, typically used for debt service issues 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
HCISD Chief Financial Officer Deborah Ottmers said the district is facing a strained financial situation, triggering the need for additional funds through the TRE.
“The reality is we don’t have enough money to pay our bills,” she said during a presentation at the Aug. 18 special meeting.
If the TRE, labeled as Proposition A, is approved by voters, funds would be used for:
- Cost-of-living salary increases for teachers and staff, both eligible and ineligible for recent state funding legislation
- State mandates that are required, but not state-funded
- Avoiding class-size increases
- Rebuilding the fund balance to the minimum recommended level of $65 million; the balance currently sits at around $20 million
If the TRE does not pass, HCISD officials warned the district would have to cut around 600 of its estimated 3,400 employees over the next three years, or 200 employees per year. HCISD has already made cuts through attrition.
Additionally, a failed TRE, according to the district, would result in:
- Increases to class sizes district-wide
- Cuts to programming and educational services
- Additional fees for services
During the meeting, trustees unanimously approved issuing a tax and revenue anticipation note, or TAN, to take on a short-term debt, or loan, for $31.5 million. About $20 million of that loan would be used to meet August payroll, Ottmers said.
Superintendent Eric Wright said some of the loan would be paid back by future sales of surplus property, but is needed “for immediacy” to make payroll for the district’s employees.
One more thing
Voters will also see homestead exemption propositions on the ballot this November.
One amendment, brought by Senate Bill 4, would raise the statewide homestead exemption from $100,000 to $140,000, as previously reported by Community Impact.
Senate Bill 23, if approved, would give homeowners over 65 or who have a disability a $200,000 exemption. Both of these bills, if approved, would impact the amount of property taxes a homeowner would have to pay.
Voting information
Voting runs Oct. 20-Nov. 4. Voters can cast ballots in their home counties, including Hays, Caldwell and Travis. Voting locations can be found at the county websites and will be published when that information becomes available.
View an interactive HCISD Election Map made by the district below.
