The tax rate for McKinney ISD will be slightly lower for fiscal year 2024-25.

The district’s board of trustees discussed the tax rate during an Aug. 26 board meeting. The total rate approved by the board is $1.1252 per $100 valuation, a $0.0023 decrease from FY 2023-24’s rate of $1.1275 per $100 valuation.

The new rate was approved in a 6-0 vote, with board member Chad Green abstaining.

“MISD is not raising taxes,” board member Stephanie O’Dell said.

The overview


The new tax rate is broken down into two pieces:
  • The first piece is the maintenance and operations rate, which covers operational expenses such as payroll. The M&O rate is $0.7552 per $100 valuation.
  • The second piece is the interesting and sinking, or I&S, rate, which pays for the district’s principal and interest on its debts. The I&S rate is $0.37 per $100 valuation.
Even though the tax rate decreased, MISD residents can expect a higher tax bill. The tax bill for an average single family home valued at $575,311 can expect a tax bill of $5,346 from the district—a $75 increase from last year.

This is due to rising property valuations and not the district increasing its tax rate, said Marlene Harbeson, MISD’s chief financial officer.
In case you missed it

The district's board of trustees approved a $392.82M budget with a $21.79M potential shortfall for FY 2024-25 in June.

Here is a breakdown of the approved FY 2024-25 budget:
  • $273.36 million expenditures in the general fund
  • $105.27 million expenditures in the debt service fund
  • $14.19 million expenditures in the food service fund
  • $21.79 million budgeted to balance the revenue shortfall
While $273.36 million in expenditures is budgeted for in the general fund, district officials expect actual expenditures to be $267.35 million—a variance of $6 million. To address the budget shortfall, $21.79 million will be reallocated from the district’s reserve fund balance.