The overview
NEISD’s tax rate for FY 2024-25 was set at $0.7007 for the general operating fund and $0.30 for the debt service fund. The approved tax rate maintains FY 2023-24’s lowered tax rate.
According to previous reporting by Community Impact, the district projects $762.9 million in total revenues, including $543.2 million in locally generated revenue and $178.5 million in state income. NEISD’s projected revenue of $762.9 million is approximately $127.5 million less than FY 2023-24 projected revenue of $890.4 million.
What else?
During the FY 2024-25 budget sessions, NEISD board of trustees requested potential avenues to generate additional revenue. NEISD officials presented an avenue known as the voter-approval tax rate election, or VATRE, during the Sept. 9 meeting, which could be voted on in FY 2025-26.
A VATRE would be triggered if the board adopted an increase in the maintenance and operations tax rate above the previously voter-approved rate, NEISD officials said.
The maintenance and operations tax rate can be increased by $0.03, with each penny generating $9 million for a total of $27 million in additional funds. Each penny would generate $4.8 million in extra taxes and $4.2 million in partially matched funds from the state, NEISD officials said.
The VATRE would be applied toward daily operations, such as salaries, utilities and supplies, NEISD officials said.
A VATRE has very specific steps that are time-sensitive and must be followed to enact a vote, NEISD officials said.
Estimated VATRE timeline
- June 20: publish notice of public meeting to discuss budget and proposed tax rate
- June 30: deadline to adopt the budget
- July: select an auditor for efficiency audit
- Aug. 12: publish notice of public meeting to discuss budget and proposed tax rate
- Before ordering a VATRE: adopt tax rate
- August, or 78th day before election: deadline to order an election
- October, or three months after auditor selection: complete audit
- Early October-late September, or 30 days before VATRE: post audit results and conduct an open public meeting
- First Tuesday after first Monday in November: Election Day
