FAQs: School Funding Referendum

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 Argyle ISD 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.

Argyle ISD, like most districts across the state, is being negatively impacted by a lack of state funding. Because of this funding shortfall, the District has adopted deficit budgets for both the 2023-2024 and 2024-2025 school years. 

This shortfall is due in part to the basic allotment per student remaining unchanged since 2019, while inflation has increased. The lack of adjustment to funding has reduced 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 M&O rate provides funding for school district operations, instruction, staff, transportation, maintenance, and daily operating expenses. In contrast, the Interest & Sinking (I&S) fund, which represents the other part of the district’s annual budget, is financed through bonds. It’s important to note that 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. As a result, the average homeowner experienced a decrease of $1,090.42 in their school taxes last year. 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. 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.

Property owners age 65 and older with a homestead tax ceiling will see no change in their taxes.

The additional VATRE funds would be used for teacher and staff pay raises, classroom instructional support positions, and maintaining classroom ratios in future years.

School districts across the state have adopted deficit budgets for the last two years, and Argyle ISD’s budget shortfall stands at $1.29 million. Contributing factors include rising inflation costs for insurance, fuel, and utilities, increased expenses for safety and security measures, and the basic allotment of $6,160 per student remaining unchanged since 2019. The 2024-25 budget includes a one-time retention supplemental payment, highlighting Argyle ISD's commitment to recruiting and retaining teachers and staff. If the school funding mechanism is approved, Argyle ISD 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.

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

Click here to download the School Funding Referendum (VATRE) Powerpoint Presentation.

No. The school bond propositions that failed last spring were part of the Interest & Sinking side of the school budget and tax rate which is related to new construction and capital improvements. This current School Funding Referendum specifically addresses the Maintenance & Operations side of the budget and tax rate that would impact the general, day-to-day operating expenses such as staffing costs, resources, and programs. 

No. CFO Liz Stewart began discussing the possibility of a School Funding Referendum with the Board of Trustees in the spring of 2023 as budget projections were becoming reality for an outdated public school funding formula used by the state. This School Funding Referendum is necessary regardless of the high school configuration. 

The 2% pay raise for this year is ongoing year after year. Each year, the Board of Trustees must consider a compensation package any % increase for staff raises is ongoing year after year. 

The state of Texas limits class sizes in grades PK-4th to 22:1. That is how Argyle ISD has staffed grades PK-4th for the past few years and again in 2024-2025. Texas Education Agency (TEA) requires a School Board-approved waiver if any class in grades PK-4th exceeds 22:1. For the past two years, AISD has had a few classes that exceeded 22:1 and required a waiver. This year, AISD currently has three classrooms exceeding 22:1 that require a waiver.

Argyle ISD staffs grades 5-12th at 25:1; however, the individual campus master schedule determines the number of students per class based on student course requests. 
 

The 2% mid-point pay increase would equate to $1,300 per teacher (based on midpoint). Teachers are also receiving a one-time stipend of $1,000, bringing the total pay increase to $2,300 for teachers in 2024-2025.