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Leander ISD residents will have the opportunity to vote for a tax rate increase this November, which officials say would generate over $6 million for the district's maintenance and operations fund.
The LISD board of trustees approved an order calling for a Voter Approval Tax Rate Election, or VATRE, during the Aug. 17 board meeting.
The cost
If approved, the VATRE would increase the M&O portion of LISD's 2026-27 tax rate by three cents, resulting in a rate of $1.1169 per $100 valuation.
Based on LISD's average taxable home value of $460,292, officials said taxpayers could expect an estimated annual tax bill of $5,141—an increase of $27.56 annually, or $2.30 per month, compared to 2025-26.
If the VATRE is not approved, the tax rate would return to the rate approved during the Aug. 17 board meeting of $1.0869. Based on the average taxable home value, this would result in a tax bill decrease of $110.53 annually, or $9.21 per month, compared to 2025-26.
Officials noted that qualifying homeowners aged 65 or older with a homestead exemption will not be impacted by the VATRE's tax increase. The VATRE would also not impact the interest and sinking, or I&S, tax rate, which would remain unchanged at $0.33.
Why it matters
If approved, funds generated through the VATRE would provide the district with approximately $6.7 million in additional funding after state recapture. While the VATRE would generate $12 million, about $5.3 million would be recaptured.
Because the M&O tax rate funds daily operating expenses such as staff pay, district programs and student services, officials noted in a district news release that this additional funding would help close part of LISD's ongoing budget shortfall, reduce the need for future cuts and clear the way for employees to receive a one-time retention bonus this December.
"Regardless of the election outcome, Leander ISD will remain committed to evaluating opportunities to increase revenue, improve efficiency and control expenses," officials stated.
How we got here
The board adopted the 2026-27 budget with a $9.9 million shortfall in June. During the Aug. 17 board meeting, Executive Director of Business Gina Mitschke outlined a variety of budget reductions that LISD has made since the 2025-26 school year, including central office cuts and the Faubion Elementary consolidation. However, gaps still remain for unfunded special education and safety mandates, flattening enrollment, inflationary costs and no meaningful increase to the basic allotment since 2019.
Something to note
The board was also considering placing a bond election on the November ballot. Following a presentation from members of LISD's Citizens' Facility Advisory Committee on July 30, which outlined either a $591.2 million or $708.5 million bond spanning districtwide projects, the board did not place an item on its Aug. 17 agenda to call for the bond election.
Chief Operations Officer Jeremy Trimble noted at an Aug. 6 board meeting that while a May 2027 or November 2027 bond could be held instead utilizing the CFAC's framework, officials will have to have a plan in place to mitigate the risks of delaying construction as facilities continue to age and required infrastructure maintenance is needed.
What to expect
Early voting will take place from Oct. 19-30, and election day is Nov. 3.
A list of polling locations, the official VATRE ballot language and a frequently asked questions section will be added to LISD's election website at a later date, per district officials.
