State law requires that school districts seek voter approval to raise their Maintenance and Operations (M&O) tax rate above the prescribed amount. The election is referred to as a Voter-Approval Tax Rate Election, but also known as a School Funding Election. 

Bond elections and VATRE’s are held for different reasons and affect different aspects of a school district’s budget.

Bond Elections:

Voter Approval Tax Rate Elections (VATRE):

 

The November 2022 bond election added additional classroom learning space for Career and Technical Education Programs such as Ag. science, Health Science, and Vet Tech. It also helped to alleviate overcrowding in the junior high cafeteria. The track has been resurfaced and changes have been made to help with drainage. The track is open to students and the community to use. The new auditorium will replace the current auditorium that was built in the 1950’s and includes 3 additional classrooms as well as studio and locker room space for drill team, cheerleading and the auxiliary line.

The VATRE’s purpose is not to build new buildings. The VATRE will not add to the school district’s debt.

The VATRE will generate more funds for the school district’s Maintenance & Operations (M&O) budget ($415,000 plus an additional $150,000 from the state) so that we can continue to focus on teacher retention and recruitment, maintain current class size and continue to offer quality educational programming for students.

Brownsboro ISD called a Voter Approved Tax Rate Election (VATRE) because of a lack of legislative action to address an outdated school funding formula. School districts across the state are adopting deficit budgets because state leaders did not update the funding model for public schools, which left districts with significant budget shortfalls because of inflation.

Because of this, school districts across the state are feeling the effects of the lack of funding and cutting programs and staff that directly affect students. Some districts have already begun increasing class size ratios (the number of students per class), eliminating extracurricular programs and reducing staff because of their budget shortfalls.

For every $100 contributed by BISD taxpayers, the state will contribute $36. Without taxpayer approval, the state will not contribute their part. This would leave over $150,000 each year of state funds unavailable for the students of the district.

School districts across the state have begun increasing class sizes, reducing staff and eliminating programs because of a lack of funding. Because of prudent financial management, Brownsboro ISD has been able to delay these actions, though these possibilities will be considered if funding does not change.

The recent increase in taxpayers, property, and property values in BISD has positioned the district to be able to decrease the overall tax rate while still generating additional funds by decreasing 3.17 cents from the Interest & sinking (I&S) tax rate and adding 3.17 cents to the Maintenance & Operations (M&O) tax rate to cover basic operating expenses with voter approval.

The VATRE will generate $415,000 by moving the 3.17 cents from the I&S tax rate to the M&O tax rate and the Texas Education Agency will provide an additional $150,000 to the district.

If voters do not approve the VATRE, Brownsboro ISD will NOT receive the $415,000 from taxpayers or the $150,000 from the Texas Education Agency.

The formula for funding District operations is set by the State and considers both student and district characteristics, including student demographics, district size, and local taxable property values and tax rates.

Because of state-mandated tax-rate compression to compensate for increased property values, the overall BISD tax rate is being lowered by .23 cents by subtracting the adopted M&O rate from 2024-2025 of 0.7869 from the 2023-2024 M&O tax rate of 0.7575. Approval of the VATRE would allow the district to keep 3.17 cents per $100 in its tax rate, increase the tax rate 2.94 cents instead of 3.17 cents, and use the additional revenue for students and staff.

If the VATRE is not approved, your tax rate will decrease to 3.17 cents, but $415,000 in funds will not be generated for the school district’s Maintenance and Operations budget.

If voters within Brownsboro ISD approve the 2024 VATRE, the Maintenance & Operations (M&O) tax rate would be $0.7869 due to moving 3.17 cents from the I&S tax rate to the M&O tax rate and the Interest & Sinking (I&S) tax rate would decrease from $0.3400 to $0.3083.

Homeowners ages 65 and older who have applied for and received the over 65 exemptions would not be affected if voters approve Brownsboro ISD's VATRE if they have filed for and received an Over 65 Homestead Exemption through their local appraisal district.

The homestead tax ceiling is a limit on the amount of school taxes you pay. When you qualify for an Over 65 or Disabled Person homestead exemption, the school taxes on your house will not increase. The ceiling freezes your school taxes at the amount you pay in the year that you qualify for the exemption.

If the VATRE is not approved, the district will lose $565,000 ($415,000 from the tax rate and $150,000 from the state) and staff retention and recruitment efforts become more challenging, class size may increase, and considerations will have to be given in relation to possible decreases in student programs offered in the district.

The November ballot will ask voters to ratify the M&O tax rate. The ballot language is set by state law and will not mention that the overall tax rate is staying the same. The ballot will read as follows: