Lone Star College System leaders said they hope to pay off the college system’s bond debt sooner than initially expected, proposing a tax rate that will enable them to do so while saving taxpayers money in the long term.
Explained
LSCS leaders are hoping to pay off $404 million in bond debt by approximately 2030 or 2031, said Kristy Vienne, LSCS vice chancellor of administration and finance, during the board’s special-called Sept. 16 meeting. To help do so, an I&S tax rate of $0.0219 per $100 valuation was proposed for fiscal year 2026-27.
The proposed I&S tax rate wouldn’t cover all of the college system's outstanding bond debt, but it would get the balance to about $311 million, Vienne said.
The college system's FY 2026-27 proposed total tax rate—which is made up of the M&O and I&S tax rates—is $0.1058 per $100 valuation, which is $0.0002 lower than the current FY 2025-26 total tax rate of $0.106, as previously reported by Community Impact.
Bond debt can only be paid off via the I&S portion of the total tax rate, while the M&O portion can only be used for the college system's operations, including employee salaries and utilities.
“With this tax rate, we will not only be able to lower the tax rate [and] support the system's goals, but also pay an additional $60 million toward our debt obligation, generating a net savings of approximately $32 million long-term to taxpayers,” Vienne said.
A closer look
Since LSCS’ proposed total tax rate is lower year over year, some taxpayers within the Harris Central Appraisal District are expected to see a drop in the LSCS portion of their annual property tax bill for FY 2026-27 compared to FY 2025-26, as previously reported. However, some taxpayers within the Montgomery Central Appraisal District and the San Jacinto County Appraisal District are expected to see higher FY 2026-27 property tax bills, since the median property value increased year over year.
As previously reported, even though Lone Star's preliminary tax rate is lower year over year, taxpayers could still have a higher tax bill if:
The taxpayer’s home or land value increases
The taxpayer loses a property tax exemption
The property value exceeds the 10% appraisal cap
In case you missed it
On Aug. 6, LSCS trustees unanimously approved a balanced $577.5 million budget for FY 2026-27, as previously reported.
Going forward
A public hearing will be held for the college system's proposed tax rate on Oct. 1, after which trustees will decide whether to approve the rate.
