Magnolia DSI The country is going through a period of expansion, while grappling with financial pressures compounded by a lack of public financing, as well as inflation. This led the district to call for a Voter Approved Tax Rate (VATRE) election that voters will see on their Nov. 5 ballot.

Superintendent Jason Bullock and Assistant Superintendent Erich Morris spoke about the current state of the district, describing how they have managed to maintain a balanced budget in a difficult economic environment.

Despite these efforts, MISD, like many Texas school districts, is feeling operating cost pressure that exceeds revenue. The base allocation, per-student funding provided by the state, has not increased since 2019, while inflation has driven up the cost of running schools.

“We have had to make some very difficult decisions, particularly over the last two years, to present and pass a balanced budget,” said Mr. Morris.

Voter-Approved Tax Rate Choice

As MISD continues to grow, the district is looking 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 daily operations, including salaries and instructional materials.

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School trustees approved the proposal for a total tax rate of $0.9895 per $100 assessmentwhich includes an increase of three cents via VATRE. These three “golden cents” are crucial because they are not subject to recapture by the state, meaning MISD would keep all locally generated revenue. If the community rejects the TVARE, the tax rate would remain at $0.9595 per $100 of valuation.

“This is the only mechanism we have to raise more revenue and force the state to pay us more money, like they haven’t done since 2019,” Bullock said.

If VATRE is approved, it would generate about $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 extra three cents, MISD would still have one of the lowest tax rates in the Houston area.

TVARE vs bonds

A common point of confusion for voters is the difference between a VATRE election and a BOND election. Although both require voter approval, they serve different purposes. A bond election allows districts to take on debt to finance 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.

“YOUR is not about debt; it’s about generating additional revenue to meet the ongoing needs of our growing district,” Morris said.

With more than 15,000 students and nearly 2,000 employees, MISD has experienced significant growth in recent years, adding its ninth elementary school in August and Middle 3 and Secondary 3 expected to open in August 2025. However, to balance this growth with sustainability required difficult financial decisions.

The last bond was passed in November 2022 and included expanding the CTE program, renovating the agricultural barn, renovating space for NJROTC, installing safety and technology upgrades, and completing of much-needed capital improvement projects, as well as new schools. This strategy allowed the district to manage future growth without significantly increasing taxes.

Advantages of TVARE accreditation

If VATRE passes, MISD has already explained how it will use these funds by approving the fiscal year 2024-25 budget.

“We have already developed a budget and a plan that outlines how we will spend the money,” Bullock said.

The main goal would be to provide 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 meet the needs of its growing student population without further straining its budget.

In the 2023-2024 school year, the district opted not to provide a salary increase due to uncertainty over additional state funding, and in 2024-2025, only a $1 increase % was granted, as well as a one-off retention bonus of $500 for staff. Despite these constraints, MISD’s financial position remains strong, with a balanced budget of $143 million for 2024-25.

“This is 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, VATRE represents a critical opportunity to provide the financial stability needed to support both students and staff in the years to come.

Early voting will take place at any polling location in Montgomery County between October 21 and November 1. For more information about VATRE, visit www.magnoliaisd.org/district/vatre-2024.

The above story was produced by Community Impact senior multiplatform reporter Sierra Rozen, with information provided solely by the local business as part of its purchase of “sponsored content” through our advertising team.