MFISD to voters: Bond will not increase property tax rate
Marble Falls Independent School District is seeking voter approval on a $172.2 million bond to improve facilities districtwide. Approving the bond would not result in a tax increase, according to school officials, but the subject can be challenging to understand due to the complex nature of school funding in Texas. Staff photo by Dakota Morrissiey
During the May 3 election, Marble Falls Independent School District voters will decide whether or not to approve a $172.2 million bond for major fixes and improvements to schools in their communities. The bond package will not increase property tax rates for district property owners, but the challenge for MFISD is helping voters understand how and why that is possible in the complex world of Texas tax laws.
The MFISD Board of Trustees called for the bond election in January after months of work from the MFISD Community Advisory Committee. The committee was comprised of over 60 members, including parents, teachers, students, interested residents, and local officials, who spent about five months evaluating the district’s present and potential future needs.
They divided $172.2 million worth of projects into four propositions, each of which will be up for a separate vote during early voting April 22-29 and Election Day on May 3.
The bond covers a wide range of districtwide improvements to be implemented over the next five years, including replacing aging buses, upgrading dilapidated campuses, expanding Career Technology Education programs, building a large indoor practice facility, reworking traffic on two elementary school campuses, improving athletic facilities, and replacing outdated technologies.
This bond is unrelated to the failed voter-approved tax rate election on the ballot during the November 2024 General Election. If that had been approved, it would have increased the property tax rate to help curb rising operation costs districtwide. When the vote failed, the district was forced to make $2.4 million in budget cuts, much of which came from letting go 35-40 staff members.
(Learn more about the specifics of each proposition and how they’re broken down at loveandinspire.com, a website created by the district.)
“The ballot language will say this is a property tax increase,” MFISD Superintendent Jeff Gasaway told the Burnet County Commissioners Court in a bond presentation on April 8. “The MFISD current tax rate will not be increased by the proposed 2025 bond propositions.”
Per a 2019 Texas law, ballots must include the language “this is a property tax increase” if a measure seeks the issuance of a bond. While MFISD is seeking a bond, which would increase the district’s debt, the district can afford to pay for it using its current property tax rate.
Since the district is able to make the necessary payments on the $172.2 million bond using its current rate, no increase is necessary. Whether or not the bond passes, the tax rate will remain the same.
MFISD’s total tax rate is about 89 cents per $100 property valuation. This is divided between a Maintenance and Operation (M&O) rate of about 67 cents and an Interest and Sinking (I&S) rate of about 22 cents.
Funds from the M&O rate may only be used to pay for the district’s daily needs, like salaries, fuel, utilities, and classroom supplies. The November 2024 voter-approved tax rate election was for an M&O tax rate increase.
Funds from the I&S rate may only be used to pay off debts from bonds, which are used for big projects like building new schools, fixing existing facilities, buying land, or upgrading athletic facilities.
Repayment of the $172.2 million bond on the May 3 ballot can be handled by the 22-cent I&S tax rate that the district already levies on its residents.
MFISD residents may pay more or less in property taxes based on the property valuations from the Burnet Central Appraisal District. This does not affect the school district’s tax rate, which will remain the same whether or not the bond passes.
The district’s tax rate has dropped significantly in recent years, from $1.28 per $100 property valuation to the current rate of 89 cents, which began in 2023.
For perspective, MFISD’s rate is similar to that of the Burnet Consolidated Independent School District, which is 87 cents per $100 property valuation, and Johnson City ISD’s rate of 86 cents. It is well above Llano ISD’s 78 cents but far below the $1.01 rate for Lampasas and Lago Vista ISDs, $1.07 for Lake Travis ISD, and $1.10 for Leander ISD.
The last bond that MFISD took on was $55 million in 2018, which was used for similar projects like school security upgrades, replacement of aging HVAC units, new buses, and improvements to aging facilities. According to Gasaway, that bond would have to be worth about $90 million to accomplish the same projects today due to massive increases in construction costs and inflation.
In his presentation to the Burnet County Commissioners Court, Gasaway noted that the $172.2 million is not subject to recapture. Recapture, more commonly known as “Robin Hood,” is a Texas education funding policy that requires property-rich districts send a portion of M&O taxes collected back to the state to be distributed among poorer school districts. MFISD sent $14.4 million of its budget back to the state through Robin Hood this year.
“Not a dollar (from the bond) is subject to recapture,” Gasaway said. “All $172.2 million will stay in Marble Falls ISD.”
7 thoughts on “MFISD to voters: Bond will not increase property tax rate”
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Funny thing, Jeff Gasaway is correct, the tax RATE will not increase, however that rate is applied to your home appraisal which then equals the dollars you pay for MFISD tax. Appraisals have gone up every year and will continue to do so, meaning the tax dollars should pay WILL go up. Why can’t our superintendent be HONEST WITH THE VOTERS, instead of telling 1/2 the story. So sad. If all of us vote ‘NO’, just imagine, our I&S rate could actually decrease from 22 cents per $100 appraised value to maybe 19 or 20 cents. Even if that were the case, with appraisals increasing our total dollars to MFISD tax would probably stay the same, but at least they won’t go up!
Appraisals have gone up because Burnet County (and other counties) finally decided to tax homes based on their actual value. The Tax Assessor/Collectors are getting caught up and nobody likes it, but to blame MFISD for that increase seems misplaced or misinformed.
This has almost nothing to do with property appraisals. If MFISD schools get “upgraded” from ‘below average’ to ‘average’ it’s not like your house is all of a sudden worth twice as much as it was.
Don’t believe it, it will increase your tax rate. You can’t squeeze money from nothing. Vote no. They can provide a quality education without all the fluff and administrative staff. Vote no!
What in the actual FLUFF are you talking about? Of the ~35 cuts, 20 were teachers that got fired.
Furthermore, school funding increases have been been frozen by the state legislators since 2019; have things gotten more expensive since 2019? Ya think!
Get real, VOTE YES.
MFISD is the backbone of this whole town. Just because you don’t have kids there, does not mean you shouldn’t support them.
Regarding MFISD bond the tax rate will not increase but higher property values will increase property taxes.
Tax rate increase? Of course not. Taxes go up? Absolutely yes, as property appraisals go up.