Montgomery ISD Board of Trustees met Monday, August 19 for their regularly scheduled board meeting. You can watch the video and read the recap below:
The Montgomery Independent School District Board of Trustees unanimously approved calling Proposition A, also known as a Voter-Approval Tax Rate Election (VATRE) for Nov. 5, 2024. State law requires that school districts seek voter approval to raise their tax rate above a prescribed amount. Proposition A will allow MISD voters to approve or disapprove the tax rate adopted by the Board of Trustees.
The school district’s total tax rate consists of two parts: Maintenance & Operation (M&O) and Interest & Sinking (I&S). The M&O rate covers general expenses like salaries and instructional costs, while the I&S rate is used to pay off debt for district facilities.
As MISD faces a $4.3 million deficit for the 24-25 school year, Prop A stands to increase the M&O rate by $.0425 which stands to generate over $5.5 million dollars of new revenues to MISD this fiscal year.
The new Montgomery ISD tax rates for the 2024-25 fiscal year are .7169 (M&O) and .3743 (I&S) for a total of $1.0912 per $100 property valuation. Prior to the 24-25 tax rate adoption, Montgomery ISD has decreased its tax rate every year since 2019, including a $.1802 decrease for 2023.
“MISD is proud that we have decreased the tax rate every year since 2019, even after the passing of the 2022 Bond election. This includes last year’s historic tax decrease of over 18 cents last year and saw their homestead exemptions increase to $100,000,” Chief Financial Officer Ben Davidson said.
“During the 2022 bond campaign, MISD let voters know that a small tax increase may be necessary to support the measure,” Board Vice President Laurie Turner said. “However, due to increased property values, the I&S rate has not increased from the passing of the bond.”
Unlike a bond proposition where funds can only be used for facility construction, renovations, and other capital improvement projects, Prop A would generate revenues for the Maintenance and Operations budget. MISD has never called for a VATRE (Prop A).
“I want to thank our trustees for the considerable time and effort they’ve committed to arrive at this point – adopting a tax rate that allows our stakeholders to have a voice in the way the school district is funded,” Superintendent Dr. Mark Ruffin said. “Prop A provides an opportunity for our community to exercise local control over our funding, something that this district has never done before.”
Prior to calling for Prop A, MISD conducted an efficiency audit that compares revenues and expenditures to 10 peer districts. The findings of the audit provided evidence that MISD receives $1,517 less per student than peer districts and MISD expenditures per student are $898 less than the peer districts.
“The audit findings reinforced what we already knew at MISD. We are already as lean as possible. We get less, and we spend less than other districts,” Board Secretary Eddie Winn said.
The State of Texas has not increased the basic allotment, the amount of money per student, for school districts since 2019, even with inflation at record highs. This puts constraints on the district’s buying power to continue providing a safe, supportive, and secure environment in Montgomery ISD.
“To be clear, our funding challenges are not limited to the lack of additional funding from the state,” Ruffin said. “Add to that inflation, rising special education costs, and unfunded mandates like HB3 that require districts to have an armed officer on all campuses. Providing officers on all campuses is something we will always commit to, but we received just $240,000 in our safety and security allotment last year, while our MISD Police Department payroll was over a million dollars. We have worked diligently to minimize our deficit without negatively impacting our student programs or our people.”
Of the estimated $5.5 million increase in revenues, 15% comes in the form of additional state aid. Prop A requires the state of Texas to also increase the amount of funding provided to MISD.
MISD has committed to focusing on these three funding priorities for Prop A:
- Recruiting & Retaining High Quality Staff
- Maintaining Student Programs
- Safety & Security
“We are in the people business. Our people are what make MISD the Premier district that it is, and the incredible people within MISD have made an incredible impact on our community over the years,” Ruffin said. “Successful communities go hand in hand with successful school districts.”
Should Prop A pass, the estimated impact would be $8.85 per month for a home valued at $350,000, the average market value for a home in Montgomery ISD. Taxpayers that are over 65 with a homestead exemption have their school taxes frozen and would not see an increase in taxes due to Prop A.
“I am proud of the dedication and effort of this board,” Board President Dr. Matt Fuller said. “We are well-informed about the impact of Prop A and the operational costs facing Montgomery ISD. Dr. Ruffin and his team have provided us with a comprehensive overview, presenting all possible scenarios. It’s clear that MISD is not alone in facing financial challenges; many districts across Texas are in similar situations. In 2024, operating costs such as salaries, supplies, insurance, and fuel continue to rise, while state funding for school operations has not kept up—meaning we’re dealing with 2024 expenses but receiving 2019 funding.”
“We truly believe our stakeholders recognize, love, and value the impact Montgomery ISD has on our students and community,” Fuller said. “Our vote tonight to call for Prop A provides those stakeholders a chance to voice in November whether to increase the local revenues for MISD.”
More information about the Prop A projects, estimated impact, and voting locations will be available on the district website at go.misd.org/PropA.
To register to vote or to find out your registration status, call the Montgomery County Elections Department at 936-539-7843, or visit their website at https://elections.mctx.org/BBM.asp. The last day to register to vote in the November election is Monday, October 7.
Early voting begins Oct. 21 and ends Nov. 1, and Election Day is Tuesday, Nov. 5.