Taxpayers have the right to know how their dollars are working in the school district. We are proud to share that our district is ranked "Superior" for financial management and reporting as part of the Financial Integrity Rating Sytsem of Texas. This page is a one-stop-shop for financial reporting. If you have any financial related questions, please contact Chief Financial Officer Byron Bryant, CPA.
Property Tax Rate
How do school property values & tax rates relate to state aid?
Under the Texas school finance formula, the Texas education agency tells school districts what their maximum compressed tax rate (MCR) will be each year. This MCR tax rate falls annually as the local property value grows, subject to a state defined upper and lower limit (ceiling and floor). This MCR is used to fund core services under what the state calls Tier 1 of the school funding formula. On top of this MCR, the board of trustees can add Tier 2 or “enrichment” pennies to the tax rate.
The total amount of funding our district receives is fixed by the Texas legislature through the state funding formula. Under the formula, the state calculates a total amount of combined state and local funding they think we need based mostly on the number of students who show up to school each day and the programs in which they participate. If more students show up, this total amount of funding is increased. If fewer students show up, this total amount of funding is decreased. If the students who show up need more services like special education or gifted education, the total amount of funding is increased.
Additionally, if the board of trustees elect to add enrichment pennies to the MCR, the total amount of funding goes up. This is called “Tier 2” funding. The state determines how much each additional “enrichment” penny is worth through the school funding formula.
Then, the state assigns a “local share” of this total cost to the district (both in Tier 1 and Tier 2). This local share is determined by applying the tax rate to the district’s property value to see what the district can raise on its own. All other things being equal, if the property value goes up, the local share goes up. The state determines what it will pay by subtracting the local share from the total cost. So, when the local share goes up, the state share falls and district revenue remains the same.