State law requires that school districts seek voter approval to raise their tax rate above a prescribed amount. The election is referred to as a Voter-Approved Tax Ratification Election (VATRE), and it would provide JNCISD voters the opportunity to vote on a proposed tax rate for the Maintenance & Operations (M&O) side of the budget, which funds school district operations, including instruction, staff, transportation, maintenance, extracurricular activities and other daily operating expenses, excluding projects included in the recent bond.

Across the state, school districts will close the 2024-2025 school year with budget deficits in the millions. JNCISD began the 2024-25 school year with a $1.4 million deficit. While the 89th legislature increased funding for schools, the additional revenue for JNCISD will be equivalent to the funding the district received in 2023-2024 and will still leave the district with deficit budgets for the coming biennium. This three-cent increase to JNCISD’s Maintenance and Operations (M&O) tax rate would generate approximately $800,000 in funding for school district operations and balance the 2025-2026 budget.

Even with the three additional golden pennies from the passage of the VATRE, the total overall tax rate (M&O plus I&S) will be lowered by $0.0200. With the passage of the VATRE, the M&O tax rate will increase by $0.0300, but the Board approved a decrease of $0.0500 on the I&S rate, which results in a lower total tax rate. Over the last eight years, the overall tax rate in JNCISD has been reduced by 21.54 cents.

Bond money can only be used for facilities and assets, including facility construction and renovation, technology, school buses, equipment and property. Bond funds may not be used for employee compensation or day-to-day operations. 

While the District remained optimistic that the state would provide much-needed financial relief for public schools, non-allocated funding has not materialized to the amount that would close the gap on the deficit budget.  In response, the District has implemented necessary adjustments to expenditures, and the Board has taken all available actions to maximize revenue within the current tax rate. These measures were deemed essential before approaching voters to request additional funding through an increase in the tax rate. Additionally, a VATRE may only be on a November ballot, limiting school districts to only one time per year to bring this to the voters.

If the VATRE does not pass, district officials would need to consider reducing staffing (72 % of the budget is personnel), student programs impacting all campuses and departments, and continue discussions of additional cost-saving measures.

The district has included information on the website and as well as social media.  Additionally, district leaders are planning presentations to community organizations and district groups. A slide presentation regarding the VATRE can also be found at the following link. Taxpayers are encouraged to stop by the administration building or contact JNCISD CFO, Hunter Cooley.  The administration building is located at 441 Graham St, Tuscola.  You may also call 325-554-7577, or  email at hcooley@jimned.esc14.net for more information.

The Board approved the 2025-2026 general operating budget with nearly $800,000 included from revenue that would be generated from the passage of the VATRE. If the VATRE were to pass, the $800,000 dollars of additional funding would be used for the funding of daily operating expenses such as staff, instruction, transportation, maintenance, utilities and extracurricular activities.

The 89th legislative session mandated a pay raise for full time teachers. The basic allotment was increased for the first time since 2019 but did not match the inflation as of 2025.  The increase from $6,160 to $6,215 fell short of the requested $6,555.  The mandated raise did not address auxiliary and other professional employees (nurses, librarians, counselors) or the TRS fees associated with the mandate. 

If the VATRE were to pass, the $800,000 dollars of additional revenue would be used to fund daily operating expenses such as staff, instruction, transportation, maintenance, utilities and extracurricular activities. With 72% of the maintenance and operations budget paying for personnel, the majority of the funds are allocated for staff salaries, including teachers. If the VATRE does not pass, JNCISD will need to consider reducing staffing (72 % of the budget is personnel), student programs impacting all campuses and departments, and continue discussions of additional cost-saving measures.

The three-cents proposed for voter approval will be made of “golden pennies.” Tax funds collected through these additional three pennies would stay within JNCISD and not be subject to recapture, otherwise known as “Robin Hood,” meaning that 100 percent of these funds would remain in the district. JNCISD is not subject to recapture. 

This is the first voter-approved tax ratification election (VATRE) for the district.

If approved, the three golden pennies would be added to the Maintenance & Operations tax rate and remain on that tax rate moving forward.

The district does receive more revenue when the property value increase.  The increase is lessened by the mandated tax rate compression.  The  amount of compression in proportional to the value increase.  The more the values grow the more compression increases.

In order to meet the requirements of the FIRST rating, TEA recommends that the district have at least 75 days of operating expenditures on hand in the fund balance. As of August 31, 2024 (the most recent general fund audit), the district's fund balance was $8,676,382, which is equivalent to 80 days of operating expenditures.

JNCISD is not subject to recapture.

The district’s maintenance and operations tax rate is determined by two things. First, the district is assigned a maximum compressed rate (MCR) by the Texas Education Agency on an annual basis. This portion of the tax rate is compressed by the state as property values within the district increase. In addition to the MCR, a school district may utilize five additional “golden pennies,” which are not subject to recapture, meaning that 100% of the revenue collected from those pennies remain within the district. JN CISD currently utilizes all five of those golden pennies.

Since 2019, the state has been shrinking the school district's maintenance and operations (M&O) tax rates on an annual basis by reducing the district's maximum compressed rate (MCR). As property values in the district increase by 2% or more each year, the MCR that is issued by the Texas Education Agency is decreased. This year's MCR is the same as 2024, $0.6169, due to the homestead exemption increase to $140,000. With the five additional golden pennies implemented by the Board of Trustees, this brought the M&O tax rate to $0.6669. If the VATRE were to pass, this would add an additional three golden pennies to this rate, making the M&O tax rate $0.6969. If the VATRE were to fail the M&O tax rate would be $0.6669.

If the VATRE fails, the M&O tax rate would be $0.6669 instead of $0.6969, resulting in $800,000 less in revenue for JNCISD.  You can also find further information about the tax rate with and without the passage of the VATRE in multiple locations, such as other FAQ responses, the VATRE flyer, a VATRE mailer that was sent throughout the community, on the ballot language explanation page, in the ballot language explanation video, the VATRE slideshow presentation and other VATRE informational resources.

The ballot language compares the 2024 taxes to the 2025 taxes which would be a difference of $626,232.  This ballot language is required by the state. 

Without the passage of the VATRE, the District's maintenance and operations (M&O) tax rate  would be $0.6669. This would result in the District receiving approximately $800,000 less in revenue. If the VATRE were to pass, the M&O tax rate would be $0.6969. $280,837 represents only the amount of the additional tax collections from this year's no VATRE M&O tax rate of $0.6690 and this year's VATRE M&O tax rate of $0.6969.. The additional $520,000 would come from the state.