According to the Texas American Federation of Teachers, a VATRE allows school districts to generate supplemental revenue by levying property taxes beyond a maximum compressed tax rate calculated by the Texas Education Agency.
Through the VATRE, SCUCISD and JISD will look to raise their property tax rates by $0.12 and $0.045 per $100 valuation, respectively. This would raise $17.15 million for SCUCISD and approximately $21 million for JISD, according to the districts’ financial staff. SCUCISD aims to fund projects in departments such as band and fine arts, while JISD seeks to reduce budget shortfalls.
SCUCISD
SCUCISD’s desire for a VATRE comes from what district officials call “overdue deferred projects” as well as the battle against rising costs in other areas.
Of the $5.94 million of deferred projects to be tackled if voters approve the VATRE, the largest department expense is in fine arts. The item with the highest fine arts cost is $3.1 million worth of band instrument replacements.
Superintendent Paige Meloni said that approximately 75% of students participate in some type of fine arts as early as fourth grade. She said the majority of those students will continue on fine arts tracks, but the district cannot afford the staff or space to accommodate new programs.
Another $5.58 million chunk of VATRE-contingent projects is capital expenditures for safety. This includes band towers for Byron P. Steele II High School and Samuel Clemens High School, as well as playground replacements at several campuses.
The specifics
Meloni said extra revenue would also go toward fighting “inflationary costs” in areas like fuel, utilities, health insurance and property insurance.
Teacher and staff salaries are also a factor for SCUCISD, as a VATRE would increase the likelihood of raises for the 2026-27, 2027-28 and 2028-29 school years. In June, the district approved its 2025-26 compensation plan, which provides raises for teachers as mandated by House Bill 2, as well as additional raises for teacher-scale employees not covered by HB 2, at a total cost of $430,000 to the district.
“We have a very solid plan of where [extra revenue] dollars are going to go for the next four years, the majority of it across four years is going to be in compensation and taking care of our [staff] in salaries, health care increases, those types of things,” said Deanna Jackson, SCUCISD’s executive director of communications and community engagement.
Measuring the impact
SCUCISD’s proposed tax rate of $1.1969 per $100 valuation would cost the average homeowner $2,219 annually. This would still result in a savings of $453 for the average homeowner due to new homestead exemptions, Chief Financial Officer Brian Moy said.
A statewide savings that impacts all school districts, including SCUCISD, is Senate Bill 4. The bill increases the school property tax exemption on homesteads from $100,000 to $140,000. Another bill, Senate Bill 23, increases exemptions for elderly or disabled homeowners. Moy said if the district did not raise its tax rate, the average homeowner would see a reduction of about $566. He said with the VATRE vote, the district is asking taxpayers to reinvest the difference in savings back into the district.
Jackson said this is the time for SCUCISD to be “proactive” and avoid future actions like cuts in programs.
“We have historically just done really well, with very little, for a very long time. It is really embedded in the culture of this district ... [but] this is where we are at now,” she said.
One more thing
Voters in the SCUCISD boundary will have their say on the VATRE item, which, if approved, would provide funding for department projects and long-term employee salary raises.
If approved, the district tax rate will be $1.1969 per $100 valuation in fiscal year 2025-26.
The average homeowner will still see savings on an average tax bill due to new legislation on homestead exemptions, district staff said.
JISD
JISD’s impetus for calling a VATRE lies in its current FY 2025-26 general fund budget shortfall of $37.95 million, the result after trustees trimmed the number over the summer.
Cost-saving items making the biggest impact were increasing teacher-to-student ratios by two students district-wide, a savings of $2.65 million, and closing 25 non-teaching position vacancies to save $1.02 million.
On May 21, the board voted to keep Judson Middle School, Candlewood Elementary School and Franz Leadership Academy open after closing the three campuses was suggested as a cost reduction item.
The board also rejected proposals to close Judson Early College Academy and pause stipends. The district’s FY 2025-26 budget was approved June 26.
Trustee José Macias Jr. said his objective has been to minimize major cuts until the VATRE passes or fails, since that will tell the district how much more action it will need to take.
“We have saved some money, but I was extremely conservative about the cuts because we’re a school district. Anything and everything that we do in a school district touches a student either directly or indirectly,” Macias said.
Amanda Poteet, board vice president, said the full impact of the cuts is still under review since several items, such as the elimination of the district’s powerlifting program, were later brought back, as previously reported by Community Impact.
By the numbers
The board pivoted from its initial consensus of a maximum $1.1196 per $100 valuation voter-approved tax rate, deciding on a proposed rate of $1.0796 per $100 valuation Aug. 18.
“We must assure our community that we will be responsible stewards of the funding they are entrusting to us. This is a big ask, and we must recognize the financial responsibility we are placing on our community members,” Poteet said.
Looking ahead
Voters in the JISD boundary will decide on the VATRE item, which, if approved, would trim its budget shortfall for FY 2025-26.
The final day to register to vote in the Nov. 4 election is Oct. 6, and early voting runs from Oct. 20-31.
JISD homeowners who want to see their estimated tax payment if the VATRE were approved can visit www.judsonisd.org/page/vatre.
