The Lago Vista ISD Board of Trustees approved a resolution calling for a November Voter Approval Tax Rate Election (VATRE) to generate additional revenue for salary increases and safety and security measures. This resolution follows months of deliberation by the Board of Trustees and the approval of the 2023-2024 budget. The VATRE will take place on November 7, 2023.
A Voter-Approval Tax Rate Election (VATRE) is an election that is required by state law when a school board adopts an M&O tax rate that is greater than the rate set by the State. The Lago Vista ISD Board of Trustees adopted an M&O tax rate of .6992 cents, which is two cents higher than the rate set by the State of Texas. With an I&S tax rate of .32 cents, the total adopted tax rate for 2023-2024 is $1.0192. Voters must approve the two cents on the M&O rate.
Due to the M&O tax rate compression by the State, Lago Vista ISD's total tax rate will decrease from last year with the passage of the VATRE. Lago Vista ISD’s total adopted tax rate for 2023-2024 is $1.0192 (with the VATRE), which is a decrease from the prior year’s tax rate of $1.184. The District’s Chief Financial Officer, Jason Stoner, explains, “If the VATRE is approved by voters, tax rates will go down 16.5 cents per $100 of valuation instead of 18.5 cents. Tax rates will still go down from last year."
In addition to compressed tax rates, Texas will vote to decide if taxpayers will see the homestead exemption increase from $40,000 to $100,000 as a result of the passage of SB 2. Lago Vista ISD taxpayers will also continue to benefit from the additional Board-approved Local Optional Homestead Exemption (LOHE), which provides a 20% exemption off the net appraised value of homesteads.
If approved by voters, the VATRE will inject approximately $800,000 into the District's operating budget.
These funds would be used to provide an additional salary increases and funding to increase safety and security measures across the District.
"If approved by voters, the VATRE will inject approximately $800,000 into the District's operating budget. These funds would be used to provide an additional salary increases and funding to increase safety and security measures across the District.”
If the additional revenue is not approved, the District will face a projected budget shortfall. This shortfall is the result of multiple variables, including the estimated $10.5 million recapture payment the District has to send to the State of Texas this school year, the discontinuation of federal funding programs, the Texas legislature's decision not to increase the basic allotment amount per student, unfunded state mandates the District will have to allocate funds to meet, and rising operating costs due to inflation. If the VATRE does not pass, the District’s budget shortfall would largely result from planned raises for staff. “If the VATRE does not pass, we will not have the revenue needed to move forward with additional salary increases planned for this year,” said Stoner.
To date, voters in nine other ISDs in central Texas have approved VATRE elections, including Leander ISD, Georgetown ISD, Dripping Springs ISD, Lake Travis ISD, and Eanes ISD.
The Lago Vista ISD VATRE and an election for Place 4 on the Lago Vista ISD Board of Trustees will be on the ballot of the General Election held on Tuesday, November 7, 2023.
For more information about Lago Vista ISD’s upcoming VATRE election, please join us at one of several planned public meetings to learn more.