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.

Due to requirements of state law, Proposition A will read as follows:

“RATIFYING THE AD VALOREM TAX RATE OF $1.0419 PER $100 VALUATION IN NEW BRAUNFELS INDEPENDENT SCHOOL DISTRICT FOR THE CURRENT YEAR, A RATE THAT WILL RESULT IN AN INCREASE OF -14.6328% PERCENT IN MAINTENANCE AND OPERATIONS  TAX  REVENUE FOR THE DISTRICT FOR THE CURRENT YEAR AS COMPARED TO THE PRECEDING YEAR, WHICH IS AN ADDITIONAL -$10,813,002.”

Here are three important things to understand about the ballot language:

1. While the tax rate has been reduced, NBISD has not seen an increase in school funding and with inflationary impacts NBISD is facing a deficit. 
2. 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.
3. The legal language of the ballot requires the wording to include “will result in an increase’, however in our case the taxpayer will see a decrease of 14.63% on their tax bill.

A school district’s overall tax rate is composed of two components: the interest and sinking fund (I&S) tax rate, which generates revenues to pay debt service on outstanding bonds, and the maintenance and operations (M&O) tax rate, which is used to pay for maintenance and operations of the district, like salaries.  The I&S tax rate has remained constant between last year and the current year.  The M&O tax rate is being compressed (or, reduced) by 18.35 cents for the current year.  Prop A would add (or, keep) 3 cents to the NBISD M&O tax rate, resulting in an M&O tax rate reduction of 15.35 cents as compared to NBISD’s prior year tax rate.

An average-value home in NBISD has an assessed value of $462,233 and a taxable value of $279,045. If voters do not approve Prop A, the tax bill due on this home would decrease by approximately $960, which comes out to approximately $80 per month less than last year’s tax bill.  This is due to the State compressing school districts’ M&O tax rates (in NBISD’s case, by 18.35 cents).  If the voters approve Prop A, the tax bill due on this home would be approximately $876 less than what the tax bill was in the prior year, which comes out to approximately $73 per month less than last year’s tax bill.

School property taxes are frozen for homeowners who qualify for a homestead exemption because they are disabled or age 65 or older. Their taxes can go down, but not up. Therefore, if you have the exemption for age or disability, your taxes will not increase if voters approve Prop A.

If you would like an informational presentation on the Voter-Approval Tax Rate Election (Prop A) by an NBISD official, please fill out our form.