Introduction

Property value studies are essential for ensuring that school districts receive equitable funding for public education. The Texas Comptroller of Public Accounts conducts a study to determine the total taxable value of all property in each school district at least once every two years [1]. These studies have a significant impact on school district funding and taxes, as the calculation of state funding for school districts is tied to tax effort [3]. In this article, we will discuss the purpose of property value studies, how they affect school district funding and taxes, and the role of the I&S tax rate in financing a district’s facilities.

Purpose of Property Value Studies

The purpose of property value studies is to help ensure equitable distribution of state funding for public education. These studies provide a reliable estimate of the total taxable value of all property in each school district [1]. This information is then used to calculate the amount of state funding that each school district will receive.

Property value studies also help to identify discrepancies in property values across different school districts. By identifying these discrepancies, the state can allocate funding more fairly and ensure that each school district has the resources it needs to provide a quality education to its students.

How Property Value Studies Affect School District Funding and Taxes

Property value studies have a direct impact on school district funding and taxes. The calculation of state funding for school districts is tied to tax effort. This means that the more property value a school district has, the more state funding it will receive [3].

When the total taxable value of all property in a school district increases, the amount of state funding that the district is eligible to receive also increases. This can provide much-needed resources to schools that are struggling to meet the needs of their students.

However, when property values increase, so do property taxes. This means that homeowners and businesses within a school district may have to pay more in property taxes to help fund their local schools. While this may be a burden for some, it is important to remember that property taxes are a crucial source of funding for public education.

Role of the I&S Tax Rate in Financing a District’s Facilities

The I&S tax rate provides funds for payments on the debt that finances a district’s facilities [3]. This tax rate is separate from the M&O tax rate, which provides funds for a district’s maintenance and operations.

School districts have the authority to set their property tax rates [3]. This means that school districts can adjust their I&S tax rate to ensure that they have the resources they need to finance new facilities or make repairs to existing ones.

When property values increase, it can be tempting for school districts to raise their I&S tax rate to take advantage of the increased taxable value and generate additional revenue. However, it is important for school districts to balance their need for funding with the financial burden that increased property taxes can have on local residents.

Conclusion

Texas property value studies have a significant impact on school district funding and taxes. These studies help ensure equitable distribution of state funding for public education and identify discrepancies in property values across different school districts. Property value studies also have a direct impact on the amount of state funding that school districts are eligible to receive, as well as the amount of property taxes that local residents must pay to support their schools.

In addition to property value studies, the I&S tax rate plays a crucial role in financing a district’s facilities. School districts have the authority to adjust their I&S tax rate to ensure they have the resources they need to fund new facilities or make repairs to existing ones.

Overall, understanding the impact of property value studies and tax rates on school district funding and taxes is essential for ensuring that Texas students have access to a quality education.

At Front Line Advisory Group (FLAG), we provide program management consulting services for capital improvement bonds. We are revolutionizing the construction industry and transforming client expectations by obsessing over the basics of budget oversight, schedule enforcement, compliance, vendor management, and stakeholder communication. Contact us for more info at info@frontlineadvisorygroup.com.

References:

[1] “Valuing Property.” Texas Comptroller of Public Accounts. https://comptroller.texas.gov/taxes/property-tax/valuing-property.php

[2] “Texas Property Taxes Explained.” Texas Tribune. https://www.texastribune.org/2022/04/22/texas-property-taxes-explained/

[3] “Texas Education and Property Taxes.” Texas Tribune. https://www.texastribune.org/2021/04/09/texas-education-property-taxes/

Development Services

How Natural Disasters Impact Permitting Departments

Natural disasters like hurricanes, tornadoes, floods, wildfires, and earthquakes can cause widespread destruction and devastation to homes, businesses, and infrastructure....
Read More
Capital Improvement Programs CIP

The Imperative for a Capital Improvement Program Management Consultant

Capital improvement bond programs, typically a recurring event in government agencies every three to five years, put an additional strain...
Read More
Capital Improvement Programs CIP

Promoting Accountability and Quality Assurance: The Role of a Rating System

Accountability and quality assurance are crucial for successful project delivery in any industry, and capital infrastructure programs are no exception....
Read More
Capital Improvement Programs CIP Local

Continuing Success: Navigating the Next Steps in Georgetown’s Capital Improvement Bond Program

Congratulations are well-deserved for the Georgetown City Council as they successfully progress in shaping the capital improvement bond program. As...
Read More
Change Management Development Services Economic Development

Boosting Economic Development by Improving Permitting Process Speed

The economic development of a region relies heavily on the efficient functioning of its municipalities. One critical factor that influences...
Read More
CIP

When the Clock Ticks and Costs Soar: Decoding Overruns in Capital Improvement Bond Programs

In the world of public finance and infrastructure, capital improvement bond programs represent substantial, often vital commitments to improving our...
Read More
CIP

Ensuring Competence and Expertise: The Role of a Rating System

In the realm of capital infrastructure programs, ensuring the competence and expertise of project managers, engineers, and contractors is vital...
Read More
Process Improvement Technology

Navigating Complexity with Ease: Tools and Technologies for Effective Process Management

Effective process management is essential to the success of your organization, providing benefits such as increased efficiency, improved quality, reduced...
Read More
CIP

Capital Improvement Bonds and Housing Subsidies: A Framework for Supporting Public Servants

The backbone of any thriving community is undoubtedly its public servants, which include first responders, government staff, and teachers. However,...
Read More
CIP

Streamlining Project Selection Process: Enhancing Efficiency and Success

  In a previous article we discussed the “Benefits of Creating a Rating System for Project Managers, Engineers, and Contractors...
Read More
Change Management

Process Management for Municipal Development Services Professionals

Processes are fundamental to our everyday lives, but it can be a challenge to understand how they work. That can...
Read More
Capital Improvement Programs CIP

Benefits of Creating a Rating System for Project Managers, Engineers, and Contractors for Capital Infrastructure Programs

In today's fast-paced world, capital infrastructure projects play a vital role in the growth and development of municipalities and independent...
Read More
Change Management

From Chaos to Clarity: How Process Management Best Practices Can Transform Your Organization

The Importance of Process Management Process management is a way of accomplishing complex tasks in an organized and efficient manner....
Read More
Bonds Public Improvement District Technology

Bridging the Gap in Capital Infrastructure Bond Programs with Program Management Software

In recent times, the sophistication of capital infrastructure projects has grown exponentially. Traditional tools and methodologies, reliant on paper-based processes...
Read More
CIP CIP Budgetting

Capital Budgeting and Financing: Empowering Local Governments and Communities

Capital budgeting and financing play a pivotal role in the financial management of local governments and communities. These concepts are...
Read More
Change Management

From Alligators to Low Hanging Fruit: A Step-by-Step Guide to Conquering Your Overwhelming Workload

It can feel suffocating to stare down an elephant sized pile of work. There is so much to do you...
Read More
Change Management

Simplifying Data Visualization

Simplifying Data Visualization: Clearer Insights, Happier Stakeholders Data visualization is a powerful tool for transforming complex data into more easily...
Read More
Bonds CIP

8 Common Hurdles faced by Capital Infrastructure Bond Programs

Executing a capital infrastructure bond program involves a series of intricate and complex processes, from design and approval stages to...
Read More
Change Management

Designing Dashboards That Work

Designing Dashboards That Work: Best Practices for Planning Your Next Dashboard Dashboards are an essential tool for organizations to monitor...
Read More
Public Improvement District

Unlocking the Power of PID Bonds

Public Improvement District (PID) bonds are an effective financing option for municipalities looking to fund public projects while maximizing local...
Read More
1 2 3 4 5 6