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Argyle ISD Board Calls School Funding Referendum for Nov. 5
Argyle ISD Communications
Updated


Argyle ISD Board Calls School Funding Election: Seeks to Address Increasing Class Sizes, Teacher and Staff Pay Raises

The Argyle ISD Board of Trustees unanimously approved calling a School Funding Referendum for November 5 during Monday’s regular Board meeting.

If approved, the AISD’s School Funding Referendum would retain approximately $2.5 million to address budget priorities including teacher and staff pay raises, providing campus support positions, and addressing increasing class sizes for the future. This referendum includes a 7.7-cent tax increase to the Maintenance & Operations (M&O) tax rate.

The M&O rate funds school district operations, instruction, staff, transportation, maintenance, and daily operating expenses. In contrast, the Interest & Sinking (I&S) fund, representing the other part of the district’s annual budget, is financed through bonds. Bond funds from the I&S budget cannot be used for operational costs such as teacher raises, rising utilities, increasing insurance costs, or other day-to-day expenses.

If approved, the tax rate impact for Argyle ISD taxpayers would be an increase of $77 per year for every $100,000 of taxable home value. In the 2023-2024 school year, AISD decreased the M&O tax rate by $0.1854, resulting in a decrease of $1,090.42 in school taxes for the average homeowner. With the proposed increase in the M&O tax rate for 2024, the average homeowner would see a net decrease of $637.55 since 2022.

Argyle ISD, like most districts across the state, is negatively impacted by a lack of state funding. Due to this funding shortfall, the District has adopted deficit budgets for both the 2023-2024 and 2024-2025 school years. This shortfall is partly because the basic allotment per student has remained unchanged since 2019, while inflation has increased, reducing our ability to support teachers and staff effectively.

Argyle ISD currently employs more than 700 teachers and staff. Due to a lack of funding by the state legislature, the District does not have the available M&O budget to fund raises. The School Funding Referendum would allow the district to fund a mid-year 2% raise for all teachers and staff.

The District last increased its M&O rate in 2012, when AISD voters approved a 10-cent Tax Ratification Election. Since the 2020-2021 school year, the M&O rate has been subject to annual compression.

Early voting will be held from October 21 to November 1, with Election Day on Tuesday, November 5. The deadline to register to vote is October 5. The AISD School Funding Referendum, also known as a Voter-Approval Tax Rate Election (VATRE), will be on ballots for all voters living in AISD.

Argyle ISD will share informational presentations with staff and the community. A schedule of presentations for families and community members will be provided soon. Additional details will be available on our AISD social media accounts and at ArgyleISD.com.

What will happen to the tax rate?

With voter approval, this referendum will increase the M&O tax rate by $0.077. Property owners 65 and older with a homestead tax ceiling would experience no change to their taxes as a result of the election.

How would the additional VATRE funds be used?

  • Teacher and staff pay raises
  • Classroom instructional support positions
  • Maintain classroom ratios in future years

What is AISD’s fiduciary track record?

  • Argyle ISD has a distinguished history of stewardship of taxpayer dollars. The district’s most recent external audits, with unmodified opinions, have been the highest-rated.
  • For the past 22 years, the district has received the highest financial integrity rating, Superior (A), from the state of Texas.
  • In 2023, the district was awarded Transparency Stars for Traditional Finances and Debt Obligations from the State Comptroller.

What caused the district’s budget shortfall?

School districts across the state have adopted deficit budgets for the last two years. AISD’s budget shortfall is $1.29 million. Contributing factors include rising inflation costs for insurance, fuel, and utilities, increased costs in safety and security measures, and the *basic allotment of $6,160 per student remaining unchanged since 2019. The 2024-2025 budget includes a one-time retention supplemental payment that demonstrates AISD's commitment to recruiting and retaining teachers and staff. If the school funding mechanism passes, AISD will be able to provide a mid-year 2% general pay increase for all staff.

*The Texas basic allotment is a foundational component of the state's school finance system, representing the minimum amount of funding allocated per student. It serves as the starting point for calculating state funding to school districts, with adjustments made based on factors such as district size, demographics, and special programs.