Eustace ISD has called a Voter-Approval Tax Rate Election (VATRE) to secure additional funding to support long-term operational goals and priorities. Specifically, with the additional funds, Eustace ISD's goals are to recruit and retain quality teachers and staff, maintain manageable class sizes, and support daily operations.
If a VATRE is approved by voters, Eustace ISD will focus on increasing teacher and staff salaries to establish competitive compensation.
Eustace ISD will continue to focus on maintaining manageable class sizes to support student learning. With access to more funding, the district will continue to prioritize creating opportunities for student program and course offerings.
Eustace ISD will use the additional funding to support daily district operations, the costs of which have risen by approximately 14-19% due to inflation. With passage of the VATRE, the district can continue to fund school safety measures, classroom supplies and general maintenance of the school district such as HVAC repair and purchasing new route buses.
Below is an example of what the ballot will look like. Note the language that says THIS IS A TAX INCREASE.
Place an "X" beside the statement indicating the way you wish to vote.
___For
___Against
THIS IS A TAX INCREASE
Ratifying the ad valorem tax rate of $ .9469 in Eustace ISD for the current year, a rate that will result in an increase of 8% in maintenance and operations tax revenue for the district for the current year as compared to the preceding year, which is an additional $600,000.
The Texas legislature recently passed Senate Bill 1025, which says if a school district wants to raise its Maintenance & Operations (M&O) tax rate above a state-set limit, the ballot must say it's a tax increase, even if a voter's total tax rate is equal to last year's rate. This phrase alerts voters that their proposed tax rate exceeds the "voter-approval tax rate" set by the state.
"Ad valorem" is a latin term that means "based on property value." It refers to the Maintenance & Operations (M&O) tax rate per $100 of property value. In the case of Eustace ISD's proposition, $0.9469 per $100. The district has adopted a total school tax rate of $0.9469, and voters are being asked to approve, or "ratify" it, which is required by state law if the adopted rate is above the "voter-approval tax rate".
A vote for the VATRE will bring the district 8% more funding for daily school operations, such as teacher salaries, supplies, utilities, and other needs, compared to what the district collected last year. It does not mean voter's taxes will go up 8%, but that the school's total funding for operations increases by that amount.
A vote FOR:
Overall school tax rate is $0.9469, equal to last year's rate.
EISD receives $1.3 million increase to Maintenance & Operations from state and local funding.
The EISD 2025 budget deficit will be addressed using VATRE funds and the budget will have the capability to support efforts to recruit and retain quality teachers and staff, maintain class sizes, and student opportunities.
A vote AGAINST:
EISD does not receive additional Maintenance and Operations funding
The EISD 2025 budget deficit will be $1.2 million and will be addressed through reduction in staffing and other corrective actions.
October 6: Deadline to register to vote
October 20: First day for early voting
October 31: Last day for early voting
November 4: Election day
What are the issues?
Eustace ISD is committed to attracting and retaining exceptional teachers. In order to remain competitive with neighboring districts, we need to continue offering competitive compensation.
Since 2019, inflation has increased by more than approximately 25%, while school operating costs in Texas have risen by approximately 14-19%.
The Texas Legislature funds every public school on a per-student basis. Through a formula, Texas sets the basic allotment. The basic allotment for Texas students has increased by $55 per student since 2019, which has not kept up with growing inflation.
As staff members left Eustace ISD for new opportunities, the district took time to carefully evaluate each position before deciding whether to refill it. Through attrition, the district has reduced staff by twelve positions thus saving the district approximately $550,000. In many cases, this means existing staff members have stepped up to take on additional responsibilities.
Even with limited funding, Eustace ISD is working to implement programs aimed at recruiting and retaining quality teachers including:
Employee-Based Daycare: Provides affordable childcare for staff, helping teachers with young children stay in the profession.
Teacher Incentive Allotment (TIA): The TIA program allows us to recognize and reward top performing teachers through designations leading to greater comprehension. Teachers will have a clear path to advancement and increased earnings while remaining in their chosen profession.
EISD teachers and staff have continued to deliver high-quality instruction and support while managing increased expenses for classroom supplies, materials, and services. District leaders have remained committed to stretching every dollar and doing more with less, prioritizing student needs and instructional quality while being careful stewards of taxpayer funds.
The VATRE asks voters to approve a change to the M&O tax rate by 5¢ for district operations. However, at the same time, the district is reducing the I&S tax rate by 5¢, keeping the overall tax rate the exact same. If approved, it would generate more than $1 million in funding for our schools to support EISD teachers and staff, daily district operations, and programs that directly impact student education.
If approved, the district will receive more than $1 million in funding for our schools, 54% of the funding provided by the state and 46% of funding generated from local tax payers.
In Texas, school funding is based on a state formula, not how much local property tax revenue a district collects. When property values go up, the state sends less money, so schools don't actually get more funding. Eustace ISD currently receives one of the lower Maintenance & Operations (M&O) tax rate in the Henderson County.
Thursday, October 9: 9:30am- Eustace ISD Multi-Purpose Building
Thursday, October 9: 5:30pm - Holcombe Performing Arts Center
Wednesday, October 15: 5:30pm - Holcombe Performing Arts Center
A school district tax rate is comprised of two parts:
Maintenance and Operations: The M&O rate funds the people and programs at our district. Think of this like a checking account. The revenue generated through the M&O tax rate pays general operations of the school district such as:
Salaries
Utility bills
School supplies
Fuel
Safety & security
Transportation
Extracurricular Programs
Interest and Sinking: The I&S tax rate is set by financial institutions based on the district's bond repayment schedule. Bonds pay for new school facilities, renovations of existing school facilities, and significant infrastructure upgrades. I&S taxes can only be used to pay voter-approved debt from bond elections.
The Texas Legislature sets the amount of funding all public schools receive on a biennial basis. With funding directly tied to student enrollment and attendance, and an average daily allotment that has been increased by only $55 since 2019. Public schools must explore alternative options to secure the additional funding needed to address budget deficits and funding challenges.
Public schools can generate additional funding beyond the basic allotment through bond elections and voter-approval tax rate elections.
Tax rates are frozen for seniors 65+. Homeowners ages 65 and older would not be affected if voters approve Eustace ISD's VATRE if they have filed for and received an Over 65 Homestead Exemption through their local appraisal district. School property taxes are frozen for individuals with this exemption.