School Funding Election

A School Funding Election or Voter-Approval Tax Rate Election (VATRE), is a special election where voters decide whether to approve an increase in the school district's maintenance and operations (M&O) tax rate above the state-mandated limit. This allows the district to access additional "golden" or "copper" pennies through a special election for local funding, which are above the state-compressed rate set by the Texas Education Agency (TEA).

If approved, the three Golden Pennies would generate an estimated $4.7 million in state and local revenue for Midlothian ISD. This money would be allocated primarily towards teacher and staff salaries, maintaining lower class sizes, enhancing student programs, and additional safety and security measures.

Midlothian ISD is asking voters to consider a special election to access additional state and local revenue through three golden pennies. If the tax rate measure is approved by voters in November, MISD will use the additional revenue for staff and teacher salary increases, maintaining lower class sizes, funding student programs and experiences, and enhancing safety and security measures.

The approval of the School Funding Election would provide additional revenue to support competitive salaries and compensation for teachers and staff. This funding would help MISD retain and attract high-quality educators, maintain manageable class sizes, and support positions that are crucial for both direct instruction and the overall functioning of the district. 

The approval of the School Funding Election would provide the necessary funding to maintain smaller class sizes, retain and attract high-quality teachers, and support essential student programs and student experiences. The additional revenue would ensure that the district can continue offering a robust educational experience, including extracurricular activities, advanced academic programs, and support services that contribute to student success.

No. On August 19th, the MISD School Board reduced the Interest & Sinking (I&S) tax rate by $0.03. If approved, the School Funding Election will increase the Maintenance & Operations (M&O) tax rate by $0.03. This means that taxpayers would see no change in their overall tax rate, as the increase in M&O taxes would be balanced by the decrease in I&S taxes. In fact, residents will experience a slight decrease as the 2023-24 adopted tax rate was $1.1092, while, if voter approved, the new tax rate will be $1.1069.

MISD cares about its taxpayers. The reduction to the I&S rate was made as part of the district's overall proposal. The purpose of the reduction to the I&S rate is to fully offset the proposed increase to the M&O rate. Without the reduction, the 2024-25 overall tax rate would still be $1.1069 and the impact on taxpayers would be the same.

Property values, which are set by the appraisal district, will play a role in determining if your tax levy goes up or down. According to the Ellis County Tax Office, the taxes due in 2024-25 on the average residence will be $327.13 less than last year.

During the 2024-25 budget planning process, staff compensation was identified as a top priority by the MISD trustees. The district’s adopted budget includes a 3% general pay increase for teachers and librarians and an average 1% increase for other positions. The additional revenue generated from the three Golden Pennies would provide a funding source to support ongoing and future staff and teacher salary and compensation increases. Funding would also reduce the district budget shortfall while addressing additional key funding priorities of lower class sizes, student programming and experiences, and safety and security.

M&O taxes fund the daily operations of the school district, including salaries, utilities, and supplies. I&S taxes, on the other hand, are used exclusively to pay off debt from bonds that fund major capital projects like new schools or renovations. If approved, the School Funding Referendum would result in no net change to the overall tax rate.

Golden Pennies are part of the local property tax rate that generates revenue not subject to state recapture (formerly known as "Robin Hood"). This means all the revenue from Golden Pennies stays within the district. Voters have the power to decide whether to access these additional funds through a School Funding Referendum.

Midlothian ISD is not currently subject to state recapture, but it is anticipated that the district may be subject to recapture in future years. Recapture requires wealthier districts to send a portion of their local tax revenue to the state to be redistributed to less wealthy districts. 

Golden Pennies are part of the local property tax rate that generates revenue not subject to state recapture (formerly known as "Robin Hood"). This means all the revenue from Golden Pennies stays within the district.

The proposed total tax rate would be $1.1069, with $0.6969 allocated to Maintenance & Operations (M&O) and $0.41 to Interest & Sinking (I&S). The I&S rate includes a $0.03 decrease, which offsets the proposed $0.03 increase in the M&O rate.

The state’s basic allotment for student funding has remained unchanged since 2019, while the district's operating costs have continued to rise due to inflation. A School Funding Referendum provides the district with the local control needed to generate additional revenue to meet these growing financial needs. Basic allotment remains at $6, 160 per student.

Homeowners age 65 and older who have filed for and received an Over 65 Homestead Exemption through their local appraisal district will not be affected if voters approve MISD’s School Funding Referendum. Their school district property taxes will remain unchanged.

They do not expire. Trustees can choose to lower the Maintenance & Operations portion of the tax rate by removing any of the 3 Golden Pennies at any time in future years. Once approved Golden Pennies are dropped from the tax rate, voter approval would be required agian to add them back to the tax rate.

No. Funds from the Interest & Sinking (I&S) portion of the MISD tax rate can only be used to pay off bond debt. I&S funds cannot be used for daily operational costs like salaries.

Yes. By lowering the I&S tax rate from 44 to 41 cents, the district will continue to be able to make timely debt payments and has the capacity to continue to pay down interest early.

Yes. Golden Pennies are not subject to state recapture and 100% of revenue generated by Golden Pennies stays in the district. 

Midlothian ISD will receive an estimated $1.8 million in new state revenue if voters approve the proposed 3 Golden Pennies. The passage of the proposition unlocks this portion of state funding.