Fayetteville ISD Asks Voters for Financial Help

This year, Fayetteville ISD and many other school districts are projecting a funding shortage due to legislative inaction during the 88th State Legislative Session and decreased enrollment.

For the first time in history, Fayetteville ISD is asking voters to consider approving three cents on its maintenance and operations tax rate to offset the increasing cost of education, a move that the school says would raise an additional $180,000 in revenue for Fayetteville ISD.

Here are some details about the proposal, provided by the school district: Fayetteville ISD approved a budget for 2023-24 with a projected deficit of $132,167 due to multiple factors, including a decreased enrollment, the need to purchase a bus, and salary increases to maintain an exemplary staff.

Calling for a VATRE (Voter- Approval Tax Ratification Election) is one strategy for FISD to help reduce that deficit without having to reduce staff and/or programs.

Because local property values continue to increase each year, the State funding formulas require that Fayetteville ISD’s Maintenance and Operations (M&O) tax rate be compressed to $0.7291 per $100/valuation.

Voter approval of a new total tax rate of $.9041 (a reduction of $0.2405 from the 2022-23 total FISD tax rate of $1.1446) will generate that estimated additional $180,000 in revenue.

If the VATRE passes, the District is planning to use this additional revenue to apply to the following expenditures: Allow for maintaining the increased compensation for FISD educators and staff already approved for the 202324 school year, thus eliminating the budget deficit already approved for this fiscal year; Provide additional funding to address identified needs and improvements within our district facilities and with innovative technology upgrades to improve our communication and monitoring capabilities and efficiencies in securing our buildings.

According to information provided by FISD, if approved on November 7, 2023, Fayetteville ISD voters would still see annual tax savings due to a cut in the interest and sinking rate and simultaneous approval of SB 2, also on the November ballot. SB 2 proposes changing the homestead exemption from $40,000 to $100,000. The overall tax decrease on an average FISD residence would be $670.97 year if the Fayetteville vote and the SB4 both pass.

School districts are funded primarily through local property taxes, with some additional funding from the State of Texas, depending on multiple factors. The Texas Education Agency calculates a district’s state funding by estimating how much local tax revenue the district should collect based on local property values.

The Fayetteville ISD total tax rate for 23-24 will decrease for the coming tax year (compared to last year) whether the election passes or not. However, the actual amount of tax levied (or actual taxes due) for each property owner ultimately depends upon the total appraised value of the property in question.

School property taxes are frozen for homeowners who qualify because they are disabled or are of age 65 or older.