VATRE Overview
Voter Approval Tax Rate Election
A Voter Approval Tax Rate Election (VATRE) is an election required by the state that asks voters to consider approving a modified tax rate to increase revenue for student programs as well as teacher and staff salaries.
A VATRE will generate local revenue for Plano ISD to:
- Provide the district’s teachers and staff with additional compensation, allowing PISD to retain a competitive and quality workforce for our students and community
- Allow PISD to continue offering quality programs for our students
- Maintain positions and systems for the safety, security and wellbeing of students
- Help reduce the budget deficit
- Help offset the loss of federal funding
- Maximize PISD's M&O funding
The net revenue generated by Plano ISD will be approximately $9 million annually.
Plano ISD Funding: A Closer Look
Plano ISD expects almost $56 million less in funding over the next three years:
- 2022-2023 - Budget Deficit ($38,900,000)
- 2023-2024 - Loss of ESSER II Federal Funding ($9,000,000)
- 2024-2025 - Loss of ESSER III Federal Funding ($8,000,000)
Tax Impact of the VATRE
Here's a look at what the tax impact of the VATRE would be on a home valued at $508,019, which is the current average home value in Plano ISD.
|
|
Home Value / |
Home Value / |
Home Value / |
|
Market Value |
$ 508,019 |
$ 508,019 |
$ 508,019 |
|
State Exemption |
$ (98,374) |
$ (98,374) |
$ (98,374) |
|
Taxable Value |
$ 409,645 |
$ 409,645 |
$ 409,645 |
|
Per $100 Value |
$ 4,096 |
$ 4,096 |
$ 4,096 |
|
PISD Tax Rate |
$ 1.32075 |
$ 1.25975 |
$ 1.22815 |
|
PISD Tax Liability |
$ 5,409.79 |
$ 5,159.94 |
$ 5,030.50 |
|
Difference in Tax Liability |
|
($249.85) |
($379.29) |
|
Difference in Tax Liability |
|
|
$129.44 |
The average state exemption has been subtracted from the home value, which brings the taxable value on this home to $409,000. This homeowner’s tax liability would have been $5,409 last year, and you can see that it actually goes down this year. That’s because Plano ISD’s total tax rate has dropped 17.9 cents in five years as a result of House Bill 3, a property tax relief bill, which has compressed the M&O tax rate for several years. The VATRE would return the M&O tax rate back to a rate similar to a few years ago.
If the VATRE fails, a taxpayer with a home valued at $508,000 would pay about $129 less per year. It would cost about $10 a month for this homeowner, but bring in approximately $9 million for the students and staff of Plano ISD.
The average state exemption has been subtracted from the home value, which brings the taxable value on this home to $409,000. This homeowner’s tax liability would have been $5,409 last year, and you can see that it actually goes down this year. That’s because Plano ISD’s total tax rate has dropped 17.9 cents in five years as a result of House Bill 3, a property tax relief bill, which has compressed the M&O tax rate for several years. The VATRE would return the M&O tax rate back to a rate similar to a few years ago.
If the VATRE fails, a taxpayer with a home valued at $508,000 would pay $120 less per year. It would cost about $10 a month for this homeowner, but bring in approximately $9 million for the students and staff of Plano ISD.
Plano ISD Tax Rate History 2016-2023
VATRE FAQs
Content Accordion PISD - Client Enablement Consultant
What is a Voter Approval Tax Rate Election?
A Voter Approval Tax Rate Election asks voters to consider approving a modified tax rate to increase revenue for student programs as well as teacher and staff salaries.
How does a VATRE differ from a bond?
A VATRE is for the Maintenance and Operations Tax Rate that supports the General Fund or day-to-day operations, such as maintaining student programs, retaining quality teachers and upholding safety and security standards. A bond election is for the Interest and Sinking Tax Rate that supports the Debt Service Fund to pay bonds that finance things like new buildings, renovations, buses and equipment for safety and security.
Will the PISD tax rate be lower in 2022-2023?
Yes. The Plano ISD tax rate will be lower in 2022-2023 than it was in 2021-2022. For comparison, the tax rates are shown below:
2021-2022 Total Rate: $1.32075
2022-2023 Total Rate: $1.25975 with voter approval on both the VATRE and Bond Election
If my tax bill is higher, why isn't the district receiving more money?
The district does not make more money when property values go up due to two factors:
- Property Tax Compression
- Property Tax Rate Compression was implemented in the 2019 legislative session under HB3 and SB2. As property values go up, the M&O tax rate goes down, resulting in neutral revenue for the district.
- Property Tax Rate Compression was implemented in the 2019 legislative session under HB3 and SB2. As property values go up, the M&O tax rate goes down, resulting in neutral revenue for the district.
- Recapture
- Plano ISD is classified as “property wealthy” and subject to the state’s Recapture (”Robin Hood”) Tax. In the 2021-2022 school year, Plano ISD’s Robin Hood payment was $214.1 million. This is more than 34% of your locally-generated operating tax revenue. Since 1993, Plano ISD has paid more than $2.4 billion in recapture.
Will the VATRE help Plano ISD maximize state funding?
Yes. By adding 3.2 pennies to the Plano ISD Maintenance & Operations rate, Plano ISD will be able to maximize state funding and use the additional funding on everyday school operations and salaries.
Can COVID Relief Funds be Used?
No. Plano ISD identified one-time expenditures for its ESSER funds since the grant will be discontinued in a couple of years. Using ESSER funds for salaries isn't sustainable.
What will happen if the VATRE is not approved by voters?
Plano ISD will need to make difficult budget decisions moving forward. These decisions could impact programs and staffing ratios. The district will need to make budget cuts, which could impact:
- Staffing
- Competitve Pay
- Class Size
- Scheduling
- Elective Programs
- Transportation
- Athletic & Fine Arts Programs
How has Plano ISD been recognized as a good steward of tax dollars?
Plano ISD’s bond ratings are Aaa/AA+, the highest ratings assigned to Texas school districts by Moody’s and Standard & Poor’s rating agencies. All items promised in the 2016 bond have been addressed and/or are in progress.
For 19 consecutive years, Plano ISD has earned the highest rating of “Superior Achievement” in the state’s School FIRST (Financial Integrity Rating System of Texas) program. This rating shows that Plano ISD’s schools are accountable not only for student learning, but also for achieving results cost effectively and efficiently. The report is based on staff, student and budget data that the financial services team submits annually to the Texas Education Agency.
For 38 consecutive years, Plano ISD has also earned the prestigious Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada. Plano ISD's Comprehensive Annual Financial Report (CAFR) has been judged each year by an impartial panel to meet high standards, including demonstrating a constructive spirit of full disclosure to clearly communicate the school district's financial story. The certificate of achievement is the highest form of recognition in the area of governmental financial reporting and accounting. Its attainment represents a significant achievement by the orgnization and its management.
Due to the district’s strong fiscal management practices, Plano ISD has been able to maintain the second-lowest property tax rate among Collin County school districts, and the district’s total tax rate has decreased each year since 2018. Because payments on existing debt are declining as old debt is being paid off, the school district can issue these new bonds without a tax rate increase, based on current interest and tax base growth models.
When can I cast my vote?
Registered voters may cast their ballot during Early Voting or on Election Day.
Early Voting is October 24 through November 4.
Election Day is Tuesday, November 8.
Visit the Voting page to learn more.
If you're not already a registered voter with your current address on file with the Collin County Elections Office, you have until October 11 to update your voter registration or register for the first time.