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 0.33 cents, the Board of Trustees at the August 16, 2021, Board meeting, adopted a tax rate that decreases the I&S rate but increases the M&O, automatically triggering voter approval.

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 seen a decrease and local funding is now capped, which has resulted in a revenue decrease while other unforeseen costs have increased because 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 5 cents.  This additional 3 cents are not subject to a reduction of state funds, as explained above.  These cents result in approximately $2.7 million from local tax revenue and $4.7 million from state funds for a total of $7.4 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 studet demographics, district size, and local taxable property values and tax rates.

An increase of $7.4 million in funding will go a long way for our district in advancing our Strategic Goals.  Funding will assist us to continue:

Students

• Provide funding to sustain the District’s one-to-one device initiative
• Provide student materials and equipment for every individual student to reduce the risk of spreading infectious diseases
• Enhance learning opportunities for students in college, career, and technical trades 
• Expand support for fine arts and other co- and extra-curricular programs
• Expand our Early Education Program

Staff

• Continue our efforts to recruit, develop, support, and retain our stellar teachers and staff
• Provide a competitive compensation package, including the District’s benefit contributions

Campuses/Departments

• Prevent funding cuts; including reductions to campus budgets or district programs
• Provide funding to replace major equipment, roofs and other facility repairs without seeking a bond election

District-Wide

• Provide support for additional expenditures as a result of the COVID-19 pandemic; including personal protective supplies and equipment, cleaning and sanitation supplies, and other unforeseen costs.

Prevent possible funding cuts made to the 2021-2023 Biennium due to the COVID-19 pandemic and its effects on the state’s economy.

The November ballot will ask voters to ratify the total tax rate, including the I&S (debt service tax rate), not just the M&O rate.  The ballot language is set by state law and will not mention that the overall tax rate is decreasing.  The ballot will read as follows:

“Ratifying the ad valorem tax rate of $1.3152/$100 in the Pearland Independent School District for the current year, a rate that will result in an increase of 6.09 percent in maintenance and operations tax revenue for the district for the current year as compared to the preceding year, which is an additional $4,255,612.”

The deadline to register for the November 2 General Election is Monday, October 4, 2021. Voter registration must be postmarked by Oct. 4.

Visit votetexas.gov for more information.

Election day is Tuesday, November 2, 2021. Early voting is October 18 – 29, 2021.

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

Polling Places – Early Voting:

https://www.brazoriacountyclerk.net/departments/elections/polling-places-early-voting

Polling Places – Election Day:

https://www.brazoriacountyclerk.net/departments/elections/polling-places-election-day