A public hearing on the proposed 2024 tax rate was held during the Midland Independent School District (MISD) School Board meeting.
According to an MISD news release, the passage of House Bill 3 (HB3) by the state legislature will provide ongoing tax rate compression for school districts. Last year, a special session increased the homestead exemption from $40,000 to $100,000 and mitigated Maintenance & Operations (M&O) tax rates, a move that was backed by voters. The district is also providing an additional 10% homestead exemption, which only 19.53% of school districts in the state offer.
The district’s tax rates are based on Interest & Sinking (I&S) and M&O funds. The M&O provides funding for daily operations within district campuses and student resources, salaries, and utilities, which the state is capable of recapturing. Funds that go into I&S are backed by voters and used to develop construction and capital projects; these collections stay within the local community.
According to the news release, MISD has been proactive in paying off debts as soon as possible to enhance property values set by the appraisal district. During the past 10 years, the district's defeasance and refinancing efforts amount to roughly $92 million. The proposed M&O tax rate for 2024 is $0.6695 and an I&S rate of $0.2101. An overall tax rate of $0.877 was approved by the school board for this fiscal year, which remains unchanged from the previous fiscal year.