School Funding Election

A:  In 2019, the state implemented tax rate compression as a method to force down a school district’s tax rate based on the district’s total assessed valued. This “compression” does not take into consideration a district’s enrollment growth rate, or whether a district already has a low tax rate. The School Funding Election, commonly called a Voter-Approval Tax Rate Election (VATRE), allows district taxpayers to have a voice in the setting of the district’s tax rate.

A:  The Board unanimously voted to call a VATRE on August 21, 2023, following months of reviewing financial predictions, studying the state’s school funding structure, and planning for the operations of the district.  This financial planning was hindered by the fact that during the regular legislative session and two special called sessions, the state has yet to pass school finance legislation.  Another consideration is wealth equalization (i.e., Robin Hood).  The growth in BHISD property value doesn't generate additional revenue for BHISD, even though BHISD's property values have grown substantially. As a result, the funding the district receives from the state will not increase. The School Funding Election allows the district to keep more of our tax money at home which can help pay for daily operating costs. The District's overall tax rate will be lower than the previous year and the lowest total tax rate in 32 years.

A:  Yes. The Barbers Hill ISD tax rate will be lower in 2023-24 than it was in 2022-23.  For comparison, the tax rates are shown below:

2022-23 Total Tax Rate: $1.1545

2023-24 Total Tax Rate: $1.1024 with voter approval of the school funding election

The tax rate will be 5.2 cents lower than 2022 and the lowest in 32 years.  Passage of the school funding election will give the owner of a $400,000 home an annual savings of $807 when all exemptions applied.

Barbers Hill has the highest optional over 65 homestead exemption in the state. School property taxes are frozen for homeowners who qualify if they are disabled or age 65 or older. If you are over 65 or disabled, your school property taxes can only go down, never up.

A:  Voter approval will allow Barbers Hill ISD to access the maximum amount of tax revenue from two “golden pennies,” approximately $1.4 million. This will give the district the maximum eight golden pennies which are not ever subject to recapture. Golden pennies are not recaptured so the district retains 100 percent of the tax revenue from these pennies.  It’s important to note that this amount grows as the district property values grow. In other words, the impact of the School Funding Election will allow Barbers Hill to annually keep more tax money for our students.

A:  Regardless of the outcome of the election, the district’s total tax rate will be $1.1024 per $100 valuation.  The failed tax rate will not include any golden pennies and therefore does not allow the district to keep more tax revenue. The I&S tax rate will be higher in a failed school funding election. Tax revenue for I&S cannot be used for operating expenditures, such as salaries, safety or academic initiatives. I&S tax revenue can only be used to pay down school debt. 

A:  No, BHISD has no control over property appraisals and in fact a school district cannot legally have any influence over appraisal values.

A:  As was the case in each of our last three bond elections, yes, the ballot language states that the voter is voting for a tax increase. We did not increase the tax rate in any of the prior three bonds and voting for this School Funding Election will still result in BHISD’s tax rate being at the lowest level in 32 years.

A:  Barbers Hill ISD does not receive more money when property values go up because of two factors – property tax compression and recapture:

1.      Property tax compression was implemented in the 2019 legislative session under HB 3 and SB 2. As property values go up, the M&O rate is forced down without any input from elected board officials and the district receives no additional funding.

2.      Barbers Hill is classified as “property wealthy” and subject to the state’s recapture “Robin Hood” tax. Barbers Hill’s annual recapture payments to the state have risen 117 percent since their inception. In fact, last year’s payment of $22 million to the state was the highest ever, more than double the previous year’s payment.

A:  Since the implementation of the school financing system known as Robin Hood three decades ago, Barbers Hill ISD has remitted nearly one-third of a billion dollars in recapture payments to the state. That means roughly 30 cents of every tax dollar Barbers Hill collects is spent elsewhere, and not always on educating students.

A:  Registered voters may cast their ballot during Early Voting or on Election Day. 

Early Voting is October 24 through November 4.

Election Day is Tuesday, November 8.