Midlothian ISD faces some difficult budgetary decisions going forward following last Tuesday’s rejection of a voter-approved tax rate election, or VATRE, that would not have changed property tax rates in the school district.
MISD voters turned down the proposed school funding proposition to authorize the district to access three “golden pennies” that would have generated an additional $4.7 million in revenue for the district’s operating budget. The additional revenue was slated to defray the district’s projected $5.6 million budget deficit and preserve budget priorities.
According to the Ellis County Elections Office, the final unofficial results were 12,298 for and 16,530 against the proposition. The MISD Board of Trustees will canvass and certify the vote at its next regular meeting this Monday.
“We are disappointed with the outcome,” MISD Board of Trustees President Gary Vineyard said in an MISD news release. “We’ve got some tough challenges ahead.”
Superintendent Dr. David Belding added in the release, “The district will begin evaluating the next steps and developing a contingency plan to deal with budget shortfalls, rising inflationary costs, unfunded state mandates and the need to preserve student programming and experiences while still attracting and retaining high-quality staff. There’s a lot to consider going forward into the next budget year. We know we can’t keep dipping into our reserve for day-to-day operations.”
The estimated $4.7 million in revenue included $1.8 million in untapped state funding that MISD cannot access without voter approval of the additional three golden pennies. The district said it will pull revenue from its 90-day reserves (fund balance) to cover the projected $5.6 million 2024-2025 fiscal year deficit.
“We put forth what we considered to be the most fiscally responsible approach to access and maximize local and state funding,” Vineyard said in the release. “Our stewardship in paying down bond debt presented an opportunity to lower the I&S (Interest and Sinking) rate, which meant taxpayers would have seen no change in the overall school district tax rate in comparison to last year if voters approved the VATRE.”
The district said budget reductions for the 2024-2025 fiscal year include increasing teacher-to-student ratios in grades 5-12. The district increased its historic ratio of 25:1 up to 26:1 through staff attrition to save nearly $3.5 million. The district also reduced operational expenditures by $972,142 on top of reductions made during the 2023-2024 fiscal year, including teacher and staff development travel.
“Last spring our staff worked diligently to reduce costs and find savings,” Belding said. “Our teams are to be commended for that work. Now with no new revenue for the operating budget, we’ll establish a plan to evaluate options and develop a recommendation for the Board to consider.”
The state’s basic allotment funding of $6,160 per student has remained unchanged since 2019, while the district’s operating costs have continued to rise by $6 million due to inflation, the district stated. A VATRE is the state’s mechanism to give districts the local control needed to generate additional revenue to meet growing financial needs.
“We are a people-centric organization,” Belding said. “With more than 80 percent of our budget allocated to staffing, we may be forced to look at our budget priorities for savings. That might mean further reducing positions through attrition, adjusting programs and student experiences, and potentially increasing class sizes again. The reality is, we have a fiduciary responsibility to address budget constraints, all while we continue to focus on making decisions that are best for students.”
