As Leander ISD looks to keep up with growth and take care of existing schools, future Bond elections are an option being considered by the Board of Trustees and the district’s Long-Range Planning Committee. Additional information on the district’s long-range planning for growth.
In November 2021, voters approved proposition B to fund $33.3 million to replace technology devices but voted against propositions A and C to fund new construction, renovations and technology infrastructure projects. For additional information on the 2021 Bond, visit the Bond page.
If the board adopts an M&O tax rate that is greater than the calculated rate set by law – by shifting pennies from the I&S tax rate to the M&O tax rate – this triggers a VATRE. If the voters do not approve the VATRE, then the M&O rate reverts to the maximum allowed under state law.
If the passes in the November 2022 election, the district would see a $30 million increase in to support the increases in pay approved by the Board on May 19 in the 2022–23 compensation plan. The additional also reduce the amount of cuts needed from existing personnel and programs.
If the does not pass, it would hurt the district’s ability to recruit and retain high-quality teachers and staff. The district would lose out on any additional revenue and would be left with a budget deficit of nearly $35 million for the 2022–23 school year. While would cover the costs for that school year, the school district would need to increase its amount of cuts in the following areas moving forward:
For a more detailed explanation on why Leander ISD would pursue a VATRE, visit the Managing the Tax Rate section of the Budget Deficit page.
“Ratifying the ad valorem tax rate of ___ (1) ___ in Leander Independent School District for the current year, a rate that will result in an increase of ___ (2) ___ percent in maintenance and operations tax revenue for the district for the current year as compared to the preceding year, which is an additional $___ (3) ___.”
(1) insert adopted tax rate
(2) insert percentage increase in maintenance and operations tax revenue under the adopted tax rate as compared to maintenance and operations tax revenue in the preceding tax year
(3) insert dollar amount of increase in maintenance and operations tax revenue under the adopted tax rate as compared to maintenance and operations tax revenue in the preceding tax year
When a school district’s property values have reached a point where they begin to send money back to the state through recapture, state law requires an Attendance Credit Election – also known as a Chapter 49 Election – for voters to approve the process by which the school district makes these mandatory recapture payments if such an election was not held previously.
If passed (FOR), the school district would make its mandatory recapture payments to the state as required under Texas law. The vote would not change anything within the school district.
If the measure fails (AGAINST), the school district would be subject to a “Detachment of Territory,” meaning the state will detached a portion of the school district’s total property value equal to the amount determined through recapture. However, this Detachment of Territory is permanent and irreversible, even if in future years the property values within the district make it no longer subject to recapture. As a result, the school district might need to raise the I&S tax rate to pay existing debt.
For a more detailed explanation of an Attendance Credit Election, visit the ACE section of the Finance 101 page.
“Authorizing the board of trustees of School District to purchase attendance credit from the state with local tax revenues.”
In May 2022, the state of Texas put before voters two proposed amendments to the Texas Constitution, including an increase to the homestead exemption in the form of Proposition 2. While the resulting decrease in property taxes collected will not impact the funds allocated to Leander ISD’s budget – as the state would be required to make up any shortfall in revenues due to the increased exemption – this resulted in our community seeing property tax relief.
Both of these amendments passed in the May 2022 election.