Magnolia ISD is navigating a period of expansion, while grappling with financial pressures made worse by a lack of state funding, as well as inflation. This had led to the district calling for a voter-approval tax rate election (VATRE) that voters will see on their Nov. 5 ballot.
Superintendent Jason Bullock and Assistant Superintendent Erich Morris spoke on the district’s current state, outlining how they’ve managed to maintain a balanced budget amid challenging economic conditions.
Despite these efforts, MISD, like many Texas school districts, is feeling the squeeze of operating costs outpacing revenue. The basic allotment, the per-student funding provided by the state, has not increased since 2019, while inflation has driven up the cost of running schools.
“We’ve had to make some very tough decisions, particularly over the last two years, to present and adopt a balanced budget,” Morris noted.
Voter Approval Tax Rate Election
As MISD continues to grow, the district is turning to voters for help in generating additional revenue through a VATRE. A VATRE allows school districts to ask voters to approve an increase in the maintenance and operations tax rate, which is used to fund day-to-day operations, including salaries and instructional materials.
School board trustees approved proposing a total tax rate of $0.9895 per $100 valuation, which includes a three-penny increase through the VATRE. These three “golden pennies” are crucial because they are not subject to recapture by the state, meaning MISD would retain all revenue generated locally. If the community rejects the VATRE, the tax rate would stay at $0.9595 per $100 valuation.
“It’s the only mechanism we have to generate more revenue and to force the state to pay us more money, as they have failed to do since 2019,” Bullock said.
If the VATRE is approved, it would generate approximately $3.7 million in local revenue, which the state would match dollar for dollar, bringing the total increase to $7.4 million. Even with the additional three golden pennies, MISD would still have one of the lowest tax rates in the Houston area.
VATRE vs. bonds
One common point of confusion for voters is the difference between a VATRE and a bond election. While both require voter approval, they serve different purposes. A bond election allows districts to take on debt to fund capital improvements, such as building new schools or renovating facilities. In contrast, a VATRE generates revenue for the district’s general operating fund, without adding debt.
“The VATRE is not about debt; it’s about generating additional revenue to meet the ongoing needs of our growing district,” Morris said.
With over 15,000 students and nearly 2,000 employees, MISD has seen significant growth in recent years, adding its ninth elementary school in August and Intermediate #3 and Junior High #3 set to open in August 2025. However, balancing this growth with sustainability has required difficult financial decisions.
The last bond was passed in November 2022, and included expanding the CTE program, renovating the ag barn, renovating space for NJROTC, installing upgrades to security and technology, and completing much-needed capital improvement projects, as well as the new schools. This strategy has positioned the district to handle future growth without significantly raising taxes.
Benefits of VATRE approval
If the VATRE passes, MISD has already outlined how they will use these funds through the approval of the fiscal year 2024-25 budget.
“We’ve already built a budget and plan that is committed to how we would spend the money,” Bullock said.
The primary focus would be on providing raises to employees, particularly those with more years of service, to help offset the impact of inflation. It would also allow the district to better address the needs of its growing student population, without further straining its budget.
In the 2023-24 school year, the district chose not to give salary raises due to uncertainty about additional state funding, and in 2024-25, only a 1% raise was provided, along with a one-time $500 retention payment for staff. Despite these constraints, MISD’s financial position remains solid, with a $143 million balanced budget for 2024-25.
“It’s about ensuring we can continue to provide quality education and retain our employees in an inflationary economy,” Bullock said.
As MISD faces the challenges of balancing growth with limited resources, the VATRE represents a critical opportunity to secure the financial stability needed to support both students and staff in the years ahead.
Early voting will take place at any Montgomery County voting location between Oct. 21 and Nov. 1. Fore more information on the VATRE, visit www.magnoliaisd.org/district/vatre-2024.
The above story was produced by Community Impact's Senior Multi Platform Journalist Sierra Rozen with information solely provided by the local business as part of its "sponsored content" purchase through our advertising team.