MISD School Funding Election outcome

Voters turn down school funding proposition

Midlothian ISD voters did not approve the proposed School Funding Election (or VATRE) to authorize the district to access 3 Golden Pennies that would have generated an additional $4.7 million in revenue for the district’s operating budget. The additional revenue was slated to defray the district’s projected $5.6 million budget deficit and preserve budget priorities.

Preliminary results, which will become official when the MISD Board of Trustees canvas votes, are 12,298 For and 16,530 Against the proposed proposition. “We are disappointed with the outcome,” said MISD Board of Trustees President Gary Vineyard. “We’ve got some tough challenges ahead.”

Superintendent Dr. David Belding added, “The district will begin evaluating the next steps and developing a contingency plan to deal with budget shortfalls, rising inflationary costs, unfunded state mandates and the need to preserve student programming and experiences while still attracting and retaining high-quality staff. There’s a lot to consider going forward into the next budget year. We know we can’t keep dipping into our reserve for day-to-day operations.”

The estimated $4.7 million in revenue included $1.8 million in untapped state funding that MISD cannot access without voter approval of the additional 3 Golden Pennies. The district will pull revenue from its 90-day reserves (fund balance) to cover the projected $5.6 million 2024-25 fiscal year deficit.

“We put forth what we considered to be the most fiscally responsible approach to access and maximize local and state funding,” said Vineyard. “Our stewardship in paying down bond debt presented an opportunity to lower the I&S rate, which meant taxpayers would have seen no change in the overall school district tax rate in comparison to last year if voters approved the VATRE.”

Budget reductions for the 2024-25 fiscal year include increasing teacher-to-student ratios in grades 5-12. The district increased its historic ratio of 25:1 up to 26:1 through staff attrition to save nearly $3.5 million. The district also reduced operational expenditures by $972,142 on top of reductions made during the 2023-24 fiscal year, including teacher and staff development travel.

“Last spring our staff worked diligently to reduce costs and find savings,” said Superintendent Dr. David Belding. “Our teams are to be commended for that work. Now with no new revenue for the operating budget, we’ll establish a plan to evaluate options and develop a recommendation for the Board to consider.”

The state’s basic allotment funding of $6,160 per student has remained unchanged since 2019, while the district's operating costs have continued to rise by $6 million due to inflation. A School Funding Election (or VATRE) is the state’s mechanism to give districts the local control needed to generate additional revenue to meet growing financial needs. 

“We are a people-centric organization,” said Belding. “With more than 80% of our budget allocated to staffing, we may be forced to look at our budget priorities for savings. That might mean further reducing positions through attrition, adjusting programs and student experiences, and potentially increasing class sizes again. The reality is, we have a fiduciary responsibility to address budget constraints, all while we continue to focus on making decisions that are best for students.”