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Homeowners in Dripping Springs ISD may see an increase in their tax bill, despite the district proposing a lower tax rate.
The DSISD board of trustees approved the fiscal year 2026-27 budget and discussed the proposed tax rate at a June 22 meeting.
The big picture
The FY 2026-27 general operating budget includes $104.49 million in expenditures and a net shortfall of $1.98 million, a decrease from the current $2.04 million deficit.
A closer look
The general fund was budgeted with the assumptions of a 99% tax collection rate, a 1% general pay increase, an 8,761 student enrollment and a 95.25% average daily attendance rate. Public schools receive a basic allotment from the state of $6,215 per student in attendance, a $55 increase from the previous rate set in 2019.
The projections
The proposed tax rate for FY 2026-27 is $1.061 per $100 valuation, about a 4-cent decrease from the previous rate. This includes a maintenance and operations rate of $0.711 and an interest and sinking rate of $0.35.
“From 2018 forward, we've seen a 46-cent decline in our overall tax rate, which I think is commendable, ” Chief Financial Officer Randy Rau said.
While the proposed rate is lower than the previous fiscal year, homeowners may pay more in school district taxes due to an increase in the median property value. Rau estimates that a homeowner of a property with a median value of $591,834 could expect to pay roughly $6,200 in taxes. This is about a $100 increase from FY 2025-26, when the median homestead value was $557,524.
Quote of note
“There’s a lot of hurt going around school finance right now in a lot of school districts,” board member Rob McClelland said. “I'm proud that this is not one. Now, could the picture be rosier? Yes, absolutely. And we'll work through the next legislature to kind of advocate for those things. That said, I'm proud of the way that this district handles its finances.”
Looking ahead
The board will approve the final FY 2026-27 tax rate in September after receiving the maximum compressed rate from the TEA.
