State law requires that school districts seek voter approval to raise their maintenance and operations tax rate above a prescribed amount. The election is referred to as a Voter-Approval Tax Rate Election (VATRE) and asks the voters to approve that rate. 

The district’s tax rate is made up of two components: (1) maintenance and operations or “M&O” tax rate, and (2) interest and sinking or “I&S” (also known as debt service) tax rate.

• The M&O tax rate is used to fund the day to day operations of the district, including teacher and staff salaries, utilities, books, electronic devices, student supplies, district insurance, maintenance and custodial supplies, transportation, mental health needs, and other items to educate our students. 
• The I&S tax rate can only be used to pay the principal and interest payments on bonds sold to construct and furnish district facilities. It cannot be used to fund the district’s operating costs.

Although the total tax rate is dropping by 16.54 cents, the Board of Trustees at the August 21, 2023, Board meeting, adopted a tax rate that exceeds the voter-approval tax rate, automatically triggering a voter approval election.

Pearland ISD has a history of operating efficiently by maintaining one of the lowest tax rates and costs per student in the state while achieving high academic success.  Although the District has implemented initiatives to reduce costs and increase funding (such as establishing cost-avoidance measures, renegotiating contracts, implementing district-wide budget cuts, staffing tightly to enrollment projections, delaying capital renewal projects, strategically managing debt and achieving successful investment strategies), the District’s enrollment has remained flat and the most recent legislative session did not allocate new funding for schools, while the cost of inflation has risen over 18% since the beginning of the Covid-19 pandemic.

The Texas school finance system is complex.  To understand how school funding works we must first know that the Maintenance & Operations (M&O) tax rate is composed of two tiers:

• Tier 1 – Basic Entitlement –set by legislature.
• Tier 2 – Enrichment Entitlement – up to 17 cents of additional tax districts have the discretion to levy.

Texas guarantees every school district a certain amount of funding for each student (basic allotment); that amount is currently set at $6,160 (with additional funding depending on district and student characteristics).  To cover the cost of funding, school districts must first use local property tax revenue (from their Tier 1 tax rate), and then the state pays the balance.  Hence, an increase in property values results in the district’s ability to fund more of the basic allotment, which then reduces the state share.  In other words, as property values increase, the state’s share of funding decreases.

The Tier 2 tax rate allows districts to obtain additional local tax revenue, without it being deducted from the basic allotment; in addition, the State rewards districts for their tax effort by maximizing state funding. Districts can levy up to 17 cents; currently Pearland ISD levies 8 cents. This additional 9 cents result in approximately $9.3 million from local tax revenue and $1.9 million from state funds for a total of $11.2 million.

Over 98.9% of the District’s general operations funding comes from school district property taxes and state funds; with the remaining 1.1% from federal funds.

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.

An increase of $11.2 million in funding will bridge the budget deficit, cover inflationary costs, and help maintain the district’s high academic standards. Funding will assist us to continue:

Students

• Bolster campus safety and student wellbeing measures
• Support diverse learning opportunities for students
• Maintain support for fine arts and other co- and extra-curricular programs
• Sustain special programs, emergent bilingual, and advanced academic interventions

Staff

• Continue our efforts to recruit, develop, support, and retain high-quality teachers and staff
• Provide a more competitive compensation package

Campuses/Departments

• Provide financial stability for District
• Address facility and infrastructure needs
• Invest in capital project needs

The November ballot will ask voters to ratify the total tax rate and will mention that the tax rate will result in the “increase of a decrease;” the ballot language is set by state law and will not mention that the overall tax rate is decreasing, nor generating less revenue. The ballot will read as follows:

““Ratifying the ad valorem tax rate of $1.1373 in the Pearland Independent School District for the current year, a rate that will result in an increase of -11.29 percent in maintenance and operations tax revenue for the district for the current year as compared to the preceding year, which is an additional -$9,390,248.”

The deadline to register for the November 7 General Election is Monday, October 10, 2023. Voter registration must be postmarked by Oct. 4.

Visit votetexas.gov for more information.

Election day is Tuesday, November 7, 2023. Early voting is October 23 – November 3, 2023.

Registered Brazoria County voters may visit any designated polling locations in the county.

Polling Places – Early Voting:

https://www.brazoriacountyclerktx.gov/departments/elections/polling-places-early-voting 

https://www.harrisvotes.com/Vote-Centers 

Polling Places – Election Day:

https://www.brazoriacountyclerktx.gov/departments/elections/polling-places-election-day

https://www.harrisvotes.com/Vote-Centers