Prosper ISD taxpayers will see the lowest tax rate from the district since 2005.

The district’s board of trustees unanimously approved the tax rate of $1.2552 per $100 valuation for FY 2024-25 on Aug. 26. This is a $0.0023 decrease from last fiscal year’s rate of $1.2575.Sorting out details

The tax rate is split into two pieces.

• The first piece, called maintenance and operations, covers daily operational costs such as payroll. The M&O rate is $.7552 per $100 valuation.
• The second piece is interest and sinking which covers principal and interest on the district’s debt payments. The I&S rate is $0.50 per $100 valuation.

One more thing

The district’s board of trustees unanimously approved the FY 2024-25 budget on Aug. 26.

Here is a quick breakdown of what is included in the total $493.23 million budget:

• $362.71 million in the general fund
• $13.47 million in the child nutrition fund
• $117.05 million in the debt services fund

The budget has a $15.45 million shortfall in the general fund as revenue does not meet the district’s expected expenses. The shortfall will be covered by the district’s fund balance, which is similar to a savings account and should hold enough money for a district to operate for 75 days, according to the Texas Association of School Administrators.