The McAllen Independent School District (ISD) held a public hearing on September 23, 2025, to discuss the proposed tax rate for the 2025-2026 fiscal year. The meeting, led by Dr. Gutierrez and Deputy Superintendent Lorena Garcia, focused on the implications of the new tax rate and its components.

During the presentation, Garcia outlined the proposed tax rate of $0.9322 per $100 valuation, which reflects a decrease of approximately 6.44 cents from the previous year's rate of $0.9966. This reduction is part of a trend of decreasing tax rates over the past several years, attributed to state compression efforts aimed at providing property tax relief to constituents.

The proposed tax rate consists of two main components: the maintenance and operations (M&O) tax rate, which covers daily operational costs, and the interest and sinking (I&S) tax rate, which is used to repay voter-approved debt. The M&O tax rate is proposed at $0.8022, while the I&S tax rate is set at $0.13.

Garcia also explained the concept of the "no new revenue tax rate," which is the rate needed to generate the same revenue as the previous year. For the 2025-2026 year, this rate is calculated at $0.866. Although the proposed rate is lower than the previous year, it is still classified as a tax rate increase due to its comparison with the no new revenue rate.

The presentation highlighted the impact of the proposed tax rate on average residents. Despite an increase in property values, the decrease in the tax rate is expected to result in savings for homeowners. For instance, a home valued at $247,770 would see a tax savings of approximately $227.36 compared to the previous year.

Additionally, Garcia noted a new law that could increase the homestead exemption to $140,000, pending approval by Texas voters in November. This change, along with an additional exemption for seniors and disabled individuals, could further alleviate tax burdens for residents.

The meeting concluded with an invitation for public comments, allowing community members to voice their opinions on the proposed tax rate. The district aims to finalize the tax rate following this public hearing, ensuring compliance with state regulations and community input.