MIDLOTHIAN – You might be hearing the term VATRE coming up at Midlothian ISD so here is a quick rundown of what it is all about.
VATRE stands for voter-approval tax rate election.
Midlothian ISD Board President Gary Vineyard explained it in simple terms.
“VATRE is a school funding referendum. The state funding system is designed to give communities local control of golden and copper pennies. To access the pennies, a voter-approval tax rate election (VATRE) or school funding referendum is required.”
If an election is called, voters will be asked to consider approving access to additional pennies (golden or copper) above the state-compressed rate set by the Texas Education Agency (TEA).
Vineyard said approving the three additional pennies would set the maintenance and operations tax rate (M&O) to three cents above the state-compressed rate.
Now, you are asking what a golden penny is.
Golden pennies provide tax revenue to school districts, a standard exercise of local control. Voters can access these pennies via the VATRE process. The revenue generated by the golden pennies will then be used to support district staff with pay increases.
The overall purpose of the VATRE regarding Midlothian ISD is to ask the community to consider approving MISD access to three golden pennies so it can provide staff raises. ” We do not have it in our budget due to a lack of state funding that normally covers these expenses,” Vineyard explained, adding, “These pennies impact M&O (maintenance and operating), which covers our daily business expenses.
Vineyard said the last pay increase for Midlothian ISD staff was in 2022.
These funds may also be used to support lower class sizes and student programs, and they are not subject to recapture, formerly called Robin Hood.
Vineyard added, “Midlothian ISD is not subject to recapture. Recapture is when the state determines that a district has more tax revenue than it should. That revenue is recaptured and sent to lower-income districts needing assistance.”
Districts across the state of Texas are making these same difficult decisions Midlothian is faced with due to deficit budgets.
“This was caused in large part due to the lack of state funding over a legislative stalemate currently in place in Austin,” Vineyard added. “Governor Abbott’s push for the education savings accounts (aka – vouchers) has created much controversy across the state leading many districts into massive deficit budgets, layoffs, school closures and/or consolidations.”
At the moment, Vineyard said, the district has not discussed calling a bond election in November.
The community votes on bonds to build schools and meet other campus needs for the district. They are managed through I&S funds (Interest and sinking). I&S funds (bonds) can only be used toward the approved projects presented to the voters and are paid through our debt service. Some bonds have funds remaining that can be used for other campus needs, such as maintenance, improvements, or additional buildings, and must be approved by the board of trustees.
“The board of trustees will consider a decrease to the tax rate for debt payments (I&S) by three cents and taxpayers will see no change to the total MISD tax rate,” Vineyard concluded. “The I&S decrease of three cents would offset the M&O increase of three cents. The possible decrease in the I&S rate will maintain the district’s capacity for future bonds and our ability to continue to make early debt repayments. As our debt balance lowers, our bond capacity increases for future bonds without the need to increase the I&S tax rate.”
Lancaster and Cedar Hill school district citizens voted to approve VATRE elections last year.
