Alvin ISD adopts $1.15 tax rate after public hearing; trustees cite state homestead exemption and TEA guidance

The Alvin Independent School District Board of Trustees voted 7–0 to adopt a total tax rate of $1.15 for the 2025–26 year following a public hearing and presentation on the district budget and tax-rate calculations.

Dr. Daniel Combs, who led the district’s budget and tax-rate public hearing, told trustees the board previously adopted a $391,000,000 operating budget in June and that state actions this spring changed some of the metrics used to calculate local rates. “Our preliminary rating is a superior rating with a score of a 98 out of a 100,” Dr. Combs said, citing a preliminary Texas Education Agency financial rating. He said the state issued guidance to districts to prepare tax notices as if a newly passed homestead-exemption law were already in effect.

The district’s published component rates are a maintenance-and-operations rate of 0.7552 and an interest-and-sinking rate of 0.3948, producing the $1.15 total. Dr. Combs said the proposed rate “is consistent with that commitment to the community and a 2¢ reduction over the prior year’s rate.” He noted the change in homestead exemption — from $100,000 to $140,000 under Senate Bill 4 — must still be ratified by Texas voters in November but that the Texas Education Agency instructed districts to calculate notices as if the change were in effect.

Why it matters: the combination of the larger homestead exemption and a wider-than-usual difference between preliminary and certified property values altered the district’s taxable values and how much of the tax rate is set by the state formula. Dr. Combs said the district saw roughly a $2,700,000,000 shift from preliminary to certified values this year and estimated that the homestead-exemption change affects about 30,000 homes and reduces property-tax collections by “in excess of a billion dollars” — dollars the state’s school-finance calculations are intended to replace when determining a district entitlement.

Trustees and staff described the practical effect on district finance choices. Board members asked how the state will make up revenue the district no longer collects directly. Dr. Combs and Superintendent Nelson explained that most school revenue is determined by student-based formulas (average daily attendance and weighted allotments) and that the state allocates a district entitlement; property-tax reductions tied to the homestead exemption are reflected in that system rather than resulting in a simple local shortfall.

Other budget context raised during the hearing: - The district adopted the 2025–26 budget in June but returned to hold this second public hearing after legislative actions this summer changed key assumptions. - The district has prioritized classroom funding and a recurring cost-of-living adjustment for staff; trustees and staff emphasized maintaining teacher and staff compensation while managing enrollment-driven costs. - The legislature enacted teacher-retention and support-staff allotments (TRA and SSRA). Dr. Combs said the state allocated roughly $45 per student for support-staff retention, which, based on the district’s student count, equates to about $1,350,000. The trustees approved using substantially more district resources (approximately $2,700,000, according to staff recollection at the hearing) to supplement support staff compensation beyond the state allotment.

Votes at a glance - Adopt 2025–26 tax rate of $1.15 (M&O 0.7552; I&S 0.3948). Motion by Trustee AJ Johnson; second by Trustee Garza; outcome: approved, 7–0. - (Other meeting votes summarized separately in this report include consent agenda approvals and staffing actions; see meeting minutes for full roll call.)

What’s next: The homestead-exemption change referenced in the presentation will appear on the statewide ballot in November. Staff added the district’s truth-in-taxation worksheets and reflective calculations to the budget appendix and said they would update public materials as final state guidance and certifications are finalized.

The board heard the public hearing, asked clarifying questions of staff, and then approved the rate in the same meeting. No taxpayer protest or public speaker opposed the proposed rate during the hearing portion recorded in the transcript.