If approved, the VATRE will generate $2.4 million in revenue, which will be prioritized toward staff salaries for recruitment and retention, in addition to safety and security expenses, Superintendent Brad Hunt said.
The details
A state funding formula that hasn’t changed since 2019, over 20% inflation since that time, and underfunded mandates such as the 88th Legislature requiring districts to have armed security officers on every campus, have forced CISD to adopt a $7.5 million deficit budget in fiscal year 2024-25, per district documents. Officials said revenue and the shortfall could change depending on the VATRE results.
Additionally, it is expected that elementary enrollment in CISD will decline by 550-660 students in the next three to four years, according to Chief Financial Officer Diana Sircar. This would lead to a loss of around $4.4 million. As students move up in grade levels, the secondary grades will start to see the decline in enrollment also, Sircar added.
“It’s unfortunate that school finance is the way it is in our state but [the VATRE] is one of the last remaining [revenue] levers we have to pull,” board President David Caviness said at the August meeting.
The district last called a tax rate election in 2010, where it maximized its maintenance and operations rate until state legislation in 2019 decreased the rate by $0.0317, according to the Texas Education Agency. The state requires voters to add those cents back into the tax rate, paving the way for CISD’s 2024 VATRE.
What you need to know
Without the VATRE, the FY 2024-25 maintenance and operations rate would be $0.7552. If the VATRE passes, that rate would increase by $0.0317 to $0.7869. Both represent a decrease from the FY 2023-24 total and M&O rates, but residents could still see higher tax bills this year due to a 10.3% increase in property values, according to district documents.
These property value increases mean a resident may pay more in taxes even if the tax rate goes down, Sircar said in an email. The state decreases tax rates when home values rise, but if it doesn’t offset the increase it can lead to a higher bill.
The average single-family residence’s taxable value within district boundaries rose from $459,210 in FY 2023-24 to $513,603 in FY 2024-25, Sircar said. This means the average tax bill will be $195 greater than last year without the VATRE and, should the VATRE pass Nov. 5, the bill would increase an additional $163 for a total of $358.
The action taken
Prior to calling the VATRE, CISD took several measures to combat funding challenges. This included generating savings through attrition, increasing fees, cutting operational costs, restructuring transportation services and efforts to increase attendance, Hunt said.
CISD officials wanted to exhaust all options before asking the community to vote on a tax rate increase, Hunt said.
The district conducted a survey in June, which received around 300 responses indicating general support for the tax increase when participants were thoroughly informed about the tax rate, according to survey documents.
“We want to make sure that people know how their children are being educated and how we’re spending their money,” Hunt said. “We want it to be a two-way communication, and we want to make sure that we’re all working together to help our students be successful.”
On Sept. 30 the board also voted to close Pinkerton Elementary, one of the oldest campuses in the district after a facilities evaluation conducted throughout summer and weeks of deliberation with community input. The consolidation is estimated to save $2.1 million and will take effect in the 2025-26 school year.
The impact
To adjust for the now more than 20% inflation, statewide school funding—which is based on average daily attendance—would need to increase by over $1,400 per student to provide the same buying power districts had in 2019, according to CISD documents. Additionally, declining enrollment and attendance are reducing district funding by $1.5 million annually.
The state calculates how much funding a school district is allowed to keep from the M&O tax revenue it collects, Sircar said in an email. If a district collects more tax revenue than permitted, the state recaptures this surplus. The state calculation is based on average daily attendance, meaning the amount of tax revenue districts can keep drops in tandem with attendance. This attendance decrease leads to larger amounts repossessed by the state.
Amid these financial burdens are mandated initiatives, like employing armed security officers, for which the state funds less than half of the over $1.3 million cost to the district. The city of Coppell agreed to absorb the cost of these officers within the city limits for FY 2024-25 and CISD will pay for officers at four schools outside city limits. In June, CISD also approved $3.3 million for staff raises.
“Retaining and recruiting high-quality staff is important for us to stay a competitive, destination school district, not only for our students and families but also for staff members,” Hunt said.
What's next?
Early voting runs Oct. 21 to Nov. 1, with Election Day on Nov. 5. Voter registration ends Oct. 7. The CISD VATRE will be on the ballot.
