As part of Montgomery ISD’s commitment to transparency and collaboration, Superintendent Dr. Mark Ruffin hosted a Spring 2025 Budget Town Hall to provide an update on the district’s financial outlook. The presentation covered funding sources, financial challenges, budget priorities, and key investments in classrooms, staff compensation and school safety.
The Top 10 things you need to know about the MISD Budget
1. Local Property Taxes Fund the Majority of the MISD Budget
Montgomery ISD’s budget is primarily funded through local property taxes, which are divided into two categories:
- Maintenance & Operations (M&O) Tax Rate – Covers daily operational costs such as teacher salaries, instructional materials, transportation, and utilities.
- Interest & Sinking (I&S) Tax Rate – Pays for voter-approved bonds used for school construction, renovations, and infrastructure projects.
66% of MISD’s operating budget comes from local property taxes, 33% from state revenues, and less than 1% from federal funds.
2. The MISD Board of Trustees Sets Tax Rates, Not Property Values
The board strives to keep tax rates competitive while ensuring adequate school funding. As property values increase, school districts do not automatically receive more revenue. Instead, state funding decreases as local tax contributions rise.
Even with the passage of Prop A in 2024, MISD’s overall tax rate remains nearly 28 cents lower than in 2018 and 14 cents lower than when voters approved the 2022 bond referendum.
3. MISD’s Budget is Balanced – and People are Our Priority
The district’s current fiscal year budget is balanced, and projections indicate a balanced budget for 2025-26.
Key priorities include:
- Teacher and staff compensation
- Safety and security
- Educational excellence
- Fiscal responsibility and long-term financial stability
4. MISD’s Efficiency Audit Highlights Strengths
A 2024 efficiency audit compared Montgomery ISD to the state and peer districts, finding:
- MISD has a higher percentage of teaching staff than peer districts and the state average.
- MISD has a lower percentage of administrative staff, demonstrating efficient resource use.
- The teacher turnover rate is lower than in comparable districts, showing strong staff retention and support.
- The district’s fund balance requires monitoring to ensure financial sustainability.
- A higher percentage of the budget is spent on instruction compared to peer districts.
You can read the MISD 2024 Efficiency Audit here.
5. The Basic Allotment Has Not Increased Since 2019
The basic allotment—the base funding per student for general operations—remains $6,160, unchanged since 2019.
6. Inflation Has Increased the District’s Operating Costs
Since 2019, MISD has experienced:
- 31.8% increase in transportation costs
- 15.1% increase in facilities maintenance and operations
- 52.3% increase in security costs
7. Texas School Districts Are Funded Based on Attendance, Not Enrollment
MISD must staff schools and transportation based on total enrollment but only receives funding based on average daily attendance, which reduces overall revenue.
8. Prop A Commitments Are Being Fulfilled
Since the passage of Prop A, MISD has:
- Balanced the district budget
- Approved a $500 retention stipend for all employees
- Hired 4 additional teachers to reduce class sizes
- Hired 6 paraprofessionals to support special education students
- Increased police officer certification stipends, purchased additional police vehicles, and maintained staffing levels above state requirements
Improving teacher and staff compensation is a top budget priority for 2025-26.
9. Bond Funds Are Restricted to Facilities and Infrastructure
School districts have two distinct funding sources:
- General Fund (M&O) – Covers daily operations, salaries, and classroom expenses.
- Bond Funds (I&S) – Used exclusively for school construction, renovations, and capital projects.
Important: Bond funds cannot be used for teacher salaries or classroom supplies. Approved bond projects include:
- New school construction
- Renovations to existing buildings
- Safety and security upgrades
- Technology infrastructure
MISD is nearing completion of the 2022 bond program, ensuring that every project promised is delivered—many under budget.
10. Transparency and Fiscal Responsibility Remain Priorities
Montgomery ISD is committed to responsible financial management and community engagement. The district provides:
- Budget updates in open board meetings
- Public hearings on tax rates and school funding
- Opportunities for public input on budget planning
Looking Ahead
MISD remains dedicated to staff compensation, students, safety and security, and long-term financial stability. The district will continue advocating for increased state funding, expanding educational opportunities, and ensuring responsible fiscal management.
Thank you to our community for your continued support and engagement in these important discussions. Together, we work diligently to balance budget priorities while delivering a premier educational experience for students.