NORTH EAST
INDEPENDENT SCHOOL DISTRICT
PROPERTY TAX RATE STRATEGY
Tradition of Excellence
Because property values continue to increase and NEISD has responsibly managed its debt obligations, it has the ability to
reduce the debt service (I&S) tax rate by 4¢. At the same time, the District can increase the maintenance and operations
(M&O) tax rate by 2¢ thus reducing the overall property tax rate by 2¢.
Your school property tax is made up of two combined tax rates:
• Maintenance and Operations (M&O rate) = day-to-day operations (e.g., teacher salaries, instructional materials); and
• Interest & Sinking (I&S rate) = money can only be used to pay long-term debt (i.e., bonds for construction projects)
Why should NEISD consider a NEW tax rate strategy?
2011-2012
Combined property taxes & state aid
have always totaled approximately
92% of General Fund revenue. Due to
2015’s and 2017’s legislative
(in)actions, the local property tax share
will be near 78% by 2018-2019. If the
legislature does nothing again in 2019,
local share will increase to 85% by
2020-2021.
2016-2017
35% 58%
State Local
23% 69%
State Local
Other 7%
Other 8%
100%
80%
8%
8%
8%
8%
31%
28%
23%
19%
• Property Values have increased
8%
8%
62%
64%
69%
74%
78%
82%
85%
2014-2015
2015-2016
2016-2017
2017-2018
70%
50%
40%
30%
20%
10%
Local Taxes
How is NEISD able to consider a new tax rate
strategy?
15%
8%
11%
60%
0%
State aid is shrinking
6%
90%
2018-2019
State
2019-2020
Who could benefit?
• Students
• Provide resources to maintain quality programs
• NEISD’s responsible debt management program
• Teachers & Staff
• Competitive Salaries & Benefits
• Commercial Paper Program
• Tax Payer
• Refunding of bonds
• Implementation of variable rate debt program
• 2¢ net property tax
rate reduction
How could it work?
2016
TAX RATE
$1.385
$1.365
Maintenance and Operations
= $1.385
Today
Benefits:
• Decreases property tax rate by 2¢
34.5¢
$1.04
With
New
Strategy
• Increase overall revenue by $16.1M
= $1.365
30.5¢
$1.06
2017
TAX RATE
A new tax rate strategy would save taxpayers 2¢ on their total taxes
by reducing the I&S tax rate by 4¢ and increasing the M&O tax rate
by 2 cents.
Debt Service
2020-2021
Other