The Board of Trustees has proposed a tax rate of $1.0419, 3 cents above the maximum rate without voter approval, to fund staff raises, student programs and increased operational expenses. If the Board of Trustees adopts a M&O tax rate that is greater than the voter-approval tax rate (a calculated rate set by law), an election to obtain voter approval of the adopted tax rate is automatically required (VATRE). If the voters do not approve the VATRE, then the M&O tax rate for the current year automatically lowers to the voter approval tax rate.
If NBISD voters, by approving Proposition A, vote to approve the M&O tax rate adopted by the Board of Trustees, the additional 3 cents approved by the voters would generate roughly $2.5 million in additional revenues. This additional revenue will allow NBISD to keep current academic programming in place and will fund previously approved teacher and staff raises which allows NBISD to recruit and retain highly-qualified staff.
The State of Texas has compressed (or reduced) school districts’ maintenance and operations (M&O) tax rates. For NBISD, the M&O tax rate has been reduced by 18.35 cents for this fiscal year. Prop A would add (or, keep) 3 cents to the NBISD M&O tax rate, resulting in an overall M&O tax rate reduction of 15.35 cents as compared to NBISD’s prior year M&O tax rate. It is important to note that even if the voters approve the VATRE, voters will still see a 15.35 cent decrease in the M&O tax rate compared to prior year.
If the voters do not approve the VATRE, the district will not be authorized to levy the additional 3 cents on the M&O tax rate resulting in a $2.5m of operating revenues. Without these additional revenues, a budget deficit of nearly $4.5 million for the 2023–24 school year would result. While fund balance could cover the budget deficit for this current school year, NBISD will need to make spending cuts that could result in fewer teachers working in the district for the subsequent years. NBISD would also consider restructuring or eliminating certain programs that NBISD students and families currently offer.
An efficiency audit was completed to assess the District’s fiscal management, efficiency and utilization of resources, and whether the District has implemented best practices utilized by Texas school districts before an election to adopt a Maintenance and Operations (M&O) property tax rate.