2024 VATRE

A photo looking up in the Texas Capitol building

Northwest ISD has called a VATRE – Voter-Approval Tax Rate Election – to continue offering programs that prepare students for college or the workforce while also retaining and recruiting the best-quality teachers in the area.

As with most school districts across the state, Northwest ISD adopted a significant deficit budget for the 2024-2025 school year following legislative inaction to update an outdated school funding model. State funding for school districts has not been updated since 2019 despite substantial inflation, leading to multimillion-dollar budget shortfalls in school districts across Texas. Additionally, though they approved $4 billion in new funding for public schools in 2023, state leaders have not provided those funds to public schools.

Northwest ISD adopted a deficit budget of $15.8 million for the 2024-2025 school year to provide staff with a midpoint raise and adequately staff our rapidly growing school district. If approved by voters, a VATRE would generate nearly $16 million for the 2024-2025 school year and additional funding each year as the district continues to experience tremendous enrollment growth. These funds would be used to protect class size ratios, prioritize retaining and adding student programs, and continue to provide teacher and staff raises.

If a VATRE is approved by voters, the district’s maintenance and operations, or M&O, tax rate would increase by 3 cents. This would represent an average $120 yearly increase on a home that is valued at $500,000. The 2024-2025 M&O tax rate is $0.6669, and if a VATRE is called by trustees and approved by voters, this rate would change to $0.6969.

Tax Rate Priorities

Student Programs: Class sizes & Student opportunities

A teacher assists a student on a Chromebook

Northwest ISD continues to offer award-winning academic programs, such as its career and technical education academies and pathways, and will prioritize protecting student opportunities. The district continues to focus on maintaining or decreasing class sizes for the best learning environments possible.

Competitive Pay: Retaining, Recruiting Quality Teachers & Staff

If a VATRE is approved by voters, Northwest ISD will continue to focus on increasing teacher and staff salaries and benefits with competitive compensation. This focus allows the district to continue to retain and recruit quality talent to educate students and support classroom teachers.

Tax Calculator

By increasing the maintenance and operations tax rate by 3 cents per $100 of property valuation, Northwest ISD property owners would see different increases on their property bills. Because of the state's $100,000 homestead exemption, a home valued at $500,000 would have its taxable value reduced to $400,000, making its tax increase for an entire year $120. The tool below can assist residents with determining their annual tax increase in the event of a successful VATRE.

Tax Rates History

Northwest ISD's current maintenance and operations tax rate of $0.6669 per $100 of taxable property is among the lowest M&O rates in the area. Additionally, the district's 2023-2024 total tax rate of $1.0902 per $100 of taxable property was an 18-cent reduction from the prior year's tax rate and marks the district's lowest total tax rate in more than 30 years.

A Flourish chart

Area M&O Tax Rates

If approved by voters, Northwest ISD's new M&O tax rate would be $0.6969 per $100 of taxable property, which would still rank near the lowest in the area. M&O tax rates of districts that border Northwest ISD as well as other large or fast-growing school districts in the area include (tax rates from 2023-2024 are listed because of varying timelines to ratify tax rates):

Fort Worth ISD: $0.7904
Birdville ISD: $0.7892
Ponder ISD: $0.7892
Keller ISD: $0.7575
Azle ISD: $0.751
Eagle Mountain-Saginaw ISD: $0.7492
Lewisville ISD: $0.7492
Grapevine-Colleyville ISD: $0.7290
Argyle ISD: $0.7122
Denton ISD: $0.6792
Carroll ISD: $0.6725
Boyd ISD: $0.6692
Decatur ISD: $0.6692
Northwest ISD: $0.6692

What is a VATRE?

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-Approval Tax Rate Election, or VATRE.
Northwest ISD's VATRE asks voters to consider a 3-cent increase to the district's maintenance and operations tax rate. In Texas, M&O budgets are used to fund daily operations, such as salaries, student programs and utilities.
These three cents are classified by the state as "golden pennies," meaning all funding generated from this increase would stay within Northwest ISD and would not be subject to recapture (or funding that is partially kept by the state in its general fund, also known as "Robin Hood"). The state recapture law redirects local school funding to schools in other areas of the state, thereby reducing the funding the state provides to districts on its own.
School boards are required to adopt the M&O rates provided by the state with the exception of any funds provided through "golden pennies" and/or approved by voters in a VATRE.

Did You Know?

Northwest ISD sends millions of dollars to the state each year in the form of a recapture payment. These funds are kept in the state budget instead of being used locally. If approved by voters, all funds generated from the VATRE would stay in Northwest ISD and not be subject to recapture.

F.A.Q.

Why did Northwest ISD call a VATRE?

Why is Northwest ISD considering a VATRE?

Northwest ISD called a VATRE because of a lack of legislative action to address an outdated school funding formula. School districts across the state are adopting deficit budgets because state leaders did not update the funding model for public schools, which left districts with significant budget shortfalls because of inflation.

In 2023, state lawmakers set aside $4 billion to provide more funding for schools, yet they have so far declined to provide that funding to public schools. Because of this, school districts across the state are feeling the effects of the lack of funding and cutting programs and staff that directly affect students. Some districts have already begun increasing class size ratios (the number of students per class), eliminating extracurricular programs and reducing staff because of their budget shortfalls.

The state's Teacher Vacancy Task Force appointed by Governor Greg Abbott issued a final report in 2023 urging the state to provide additional funding to the basic allotment (the funding school districts receive per student) and teacher pay raises. So far, state leaders have not acted on this recommendation.

How does this affect my student?

School districts across the state have begun increasing class sizes, reducing staff and eliminating programs because of a lack of funding. Because of prudent financial management and sustained growth, Northwest ISD has been able to delay these actions, though these possibilities will be considered if funding does not change.

Options Northwest ISD will consider in the event of ongoing budget shortfalls include increasing the number of students per class, eliminating some academic and extracurricular student programs, and eliminating positions that both directly and indirectly support students.

How does this affect teachers and staff?

Northwest ISD wants to retain and recruit the highest-quality teachers, and a major factor in keeping and recruiting staff in any industry is compensation. This April, the district's school board approved 2% midpoint pay raises for all staff and increases to veteran teacher pay to continue showing value to our teachers and staff.

Texas currently ranks 29^th in the nation in teacher pay, roughly $9,000 behind the national average, according to a recent report. If Northwest ISD can continue to exceed the typical regional and state pay, it can continue to retain and attract the best teachers and show our teachers and staff we value them.

Does Northwest ISD use tax dollars wisely?

Northwest ISD has received an "A" rating, the top score possible, in the Texas Education Agency's Financial Integrity Rating System of Texas, or FIRST, for 21 consecutive years. By comparison, some school districts in the area have received a "C" rating. Additionally, Northwest ISD has earned the Award of Merit for Purchasing Operations from the Texas Association of School Business Officials, and the Government Finance Officers Association has awarded Northwest ISD both the Distinguished Budget Presentation Award and the Certificate of Achievement for Excellence in Financial Reporting.

What would this mean for my taxes?

Any property owner who lives within Northwest ISD boundaries would pay 3 cents more per $100 of property valuation. For a property owner with a $500,000 house and a homestead exemption, this would mean $120 more per year – or $10 per month – in taxes.

The proposed 2024-2025 maintenance and operations tax rate for Northwest ISD is $0.6669. If voters within Northwest ISD approve the 2024 VATRE, the tax rate would instead be $0.6969.

Would this affect homeowners ages 65 and older?

What about federal funds districts received during the pandemic?

As with school districts across the nation, Northwest ISD received three series of one-time payments from the federal government in the form of ESSER funding. These funds existed in a finite timeframe and are no longer provided; all funds are legally required to be used by September 2024. Districts received varying monetary amounts of ESSER funding based on their socioeconomic demographics. Northwest ISD received about $12 million in ESSER funding over the course of three rounds. Northwest ISD planned for the "fiscal cliff" resulting from these funds ceasing after their initial allotment by creating a plan to transition any new staff to the general fund. These positions were budgeted for years in advance, and as Northwest ISD received additional funds from increased student enrollment, these positions were scheduled into staffing and budget planning for future years.

How does Northwest ISD's tax rate compare to other fast-growth districts?

Northwest ISD is tied for the lowest maintenance and operations tax rate among districts that are part of the Fast Growth School Coalition. Both Northwest ISD's M&O tax rate as well as its total tax rate rank below both the mean and median of fast-growth Texas school districts. To see a list of fast-growth Texas school district tax rates, view this document.

How does Northwest ISD staffing compare to similar districts?

Northwest ISD staffing prioritizes classroom needs above all else. According to the most recent Texas Academic Performance Reports, teachers account for 59.6% of Northwest ISD's total staffing compared to the state average of 48.7%. This also exceeds area school districts such as Lewisville ISD (58.1%), Keller ISD (56.9%), Carroll ISD (56%), Denton ISD (54.9%), Eagle Mountain-Saginaw ISD (53.4%) and Fort Worth ISD (49.5%).