Voter-Approval Tax Rate Election
Proposition A
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.
Where does each tax dollar go?
School budgets and tax rates are made up of two parts: Maintenance and Operation (M&O) and Interest and Sinking (I&S). The money generated from each part can only be used for specific types of expenses.
Low Tax Rate
The Clear Creek Independent School District total tax rate has declined since 2019.
This compression of the Maintenance and Operations Tax Rate is in result of legislation to lower local school property taxes when property values increase, which is what homeowners in Clear Creek ISD have been experiencing. While the tax rate has been reduced, Clear Creek ISD has not seen an increase in school funding and with the following inflationary impacts, lower student enrollment, and a recovering attendance rate, CCISD is facing a deficit. Proposition A on the November Ballot, if approved by voters, will balance the budget.
Clear Creek ISD Funding: A Closer Look
Budget Shortfall
The 88th Legislature adjourned in May without increasing the basic allotment which has further complicated the financial outlook for Clear Creek ISD. To the left is a projected budget deficit forecast if additional revenue is not generated by 2025. Clear Creek ISD is projected to face a $30 million deficit by 2025. The District has eliminated $4.5 milion in expenditures this year alone and will continue to seek ways to reduce costs without impacting students.
Inflation Impact
Schools no longer have the same buying power as they did in 2019 when the $6,160 basic allotment was set. According to the Consumer Price Index, average inflation since 2019 has increased by 17%. That means in order to have the same buying power as they did after 2019, the basic allotment would need to be over $7,207. The Legislature adjourned this session without increasing the 2019 basic allotment.
Comparison of Expenditures
Clear Creek ISD has the fourth lowest Maintenance and Operations tax rate in Texas and utilizes the majority of its revenue directly in instruction compared to the region and the state.
Budget Sprint Team Report
When the financial outlook became clear in the spring of 2023, Clear Creek ISD convened a Strategic Budget Team to explore options to increase revenue and decrease expenditures. Here is their report with an update from the District in October 2023.
School Funding Basics
School Funding Basics
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