School Board Approves 2025 Tax Rate of 1.1043 Amid Budget Amendments

In a recent meeting held on August 18, 2025, the McKinney Independent School District (MISD) Board of Trustees discussed and adopted the proposed tax rate for the upcoming fiscal year. The meeting highlighted the complexities of budget development and tax rate setting, particularly in light of recent legislative changes and local economic conditions.

Superintendent Pratt outlined the timeline for the budget and tax rate process, noting that the public hearing on the budget and proposed tax rate was held on June 23, followed by the adoption of the budget that same evening. The board received certified property values from the Collins Central Appraisal District on July 24, which are crucial for determining the tax rate. This year, the certified values showed a 6.5% increase, although the district faced challenges due to protests and an increased homestead exemption.

The proposed tax rate for the 2025-2026 school year was set at $1.1043 per $100 valuation, which includes a maintenance and operations (M&O) rate of 0.7343 and an interest and sinking (I&S) rate of 0.37. This represents a decrease of just over $0.02 from the previous year. However, because the proposed rate exceeds the new no-revenue tax rate, the board was required to state that the tax rate would effectively increase by 1.4609%, despite the overall decrease in the rate.

The meeting also addressed the implications of House Bill 2, which allocated $8.5 billion to public education, impacting teacher pay, support staff, and other essential services. Superintendent Pratt emphasized the importance of these funds in addressing inflation-related costs, including utilities and employee benefits.

In addition to the tax rate, the board discussed proposed budget amendments related to increased local property tax revenue and state aid. The district aims to utilize these funds effectively to support its educational programs and maintain financial stability.

The board's decision to adopt the tax rate and budget amendments reflects a commitment to transparency and fiscal responsibility, as they navigate the challenges posed by state mandates and local economic conditions. The next steps will involve implementing the budget and monitoring its impact on the district's educational goals and community needs.