Northwest ISD projects nearly 23% increase in taxable value for 2022-23

Northwest ISD is projecting a nearly 23% increase in taxable value for its 2022-23 budget, according to a presentation at a May 23 work session.

The more than $25.6 billion in certified taxable values this year is expected to increase to nearly $31.49 billion across district properties in Tarrant, Denton and Wise counties, the presentation showed.

Some of that increase comes from the higher home values. The average market value of a home in NISD last year was $334,835 compared with $419,272 this year, according to district figures. The district is also seeing a lot of new home construction, according to information presented to the board.

Certified property values from appraisal districts are due in late July.

The growth in property values means the district’s revenue in its maintenance and operations budget would go from $208.9 million originally budgeted for 2021-22 school year to a projected $267.5 million in 2022-23.

Some of that extra revenue will go toward funding growth in NISD. The fast-growing district is estimated to add 2,542 more students next school year, according to a demographer’s report reviewed during the May 23 board meeting. Money will also go toward new staff to handle that growth plus pay increases and one-time stipends approved by the board of trustees earlier this school year. Also among the priorities in the budget is to reduce the student-teacher ratio in first and second grades from 24-1 to 22-1.

The higher property values also mean the district will have to pay more in recapture, according to the presentation. Recapture is tax money that property-wealthy districts send to the state to help fund districts with less wealth in property values.

Jonathan Pastusek, the district’s executive director of financial services, told the board that NISD’s recapture payment this school year was originally estimated to be more than $2.78 million. It is now projected at more than $8 million, he said. For the 2022-23 school year, Pastusek said he projects NISD will pay nearly $28.66 million in recapture.

Pastusek added that if the district’s growth projections hold true, NISD's recapture payment would increase to about $99 million for the 2025-26 school year.

The district’s property tax rate is $1.292 per $100 valuation this school year. Pastusek said he expects that rate to decrease when the state comptroller’s office sets school district tax rates later this year.

A public meeting on the proposed budget and property tax rate will be held as part of the June 27 board of trustees meeting, which will start at 6:30 p.m.