If passed, the shortfall will turn into a projected $7.5 million surplus, Chief Financial Officer Brian Guinn said at the June 23 board meeting, when the board approved the $901.6 million budget.
The breakdown
The FY 2025-26 tax rate is anticipated to be $1.0569 per $100 of property valuation, reflecting a 3.33% increase from the previous year, per district documents. The proposed tax rate is the first time since FY 2017-18 that the tax rate will be raised.
The increase includes a higher maintenance and operations, or M&O, rate, rising from $0.7169 to $0.7869, and maintains a debt service rate of $0.27.
The board was granted permission by the state to add seven “disaster pennies” to the tax rate without voter approval following Hurricane Beryl last July. The “pennies” are extra property tax rate increments permitted by the state to help communities recover from natural disasters, Guinn previously said.
How we got here
The approved 2025-26 budget includes several staff pay raises not covered by the state legislature, including a starting salary bump from $62,000 to $63,000. The adjustment comes as a study by the Texas Association of School Boards revealed that starting salaries in the district are approximately $2,000 below the regional average for the 2024-25 school year.
Additional package items include:
- A $5,000 signing bonus for employees hired by Dec. 19 for hard-to-fill positions such as bilingual, math and science teachers
- A $250 bonus each semester for bus drivers with perfect attendance
- A $500 district supplement for employees not eligible for the state’s allotment through 2027
At the June 9 agenda review meeting, board President Kristin Tassin said the district has struggled to remain competitive in both salaries and services due to maintaining a significantly lower tax rate compared to neighboring districts that offer higher starting teacher salaries.
Later, at the June 23 board meeting, Tassin also said the increasing impact of alternative schooling options posed a challenge to retaining high-quality teachers.
“I don't want to talk about raising taxes,” she said. “But, I think we have to look at it and be realistic about it, and we have to take care of our people.”
Taking a step back
Despite an anticipated rise in the tax rate, Guinn previously stated the average homeowner in the district is likely to see a reduction in their yearly property tax bill due to potential homestead exemption increases from $100,000 to $140,000. Voters will decide on this amendment in the November election.
Next steps
If approved at the Sept. 15 board meeting, the tax rate will be effective immediately, per district documents.
