Denton ISD board calls Nov. 4 election after tax-rate hearing, approves tax ordinance unanimously

Denton ISD trustees unanimously approved a tax-rate ordinance and an order to call a tax ratification election for Nov. 4, 2025, following a public hearing on the district’s 2025–26 tax rate.

Jennifer Stewart, the district finance lead presenting the hearing, laid out the district’s fiscal picture and how proposed changes to the maintenance and operations (M&O) tax rate would affect both district finances and the average homeowner. Stewart said the district’s adopted budget showed an approximate $19.5 million deficit, and estimated House Bill 2 (HB2) funding at about $19.2 million. “With that new funding comes compensation requirements,” she told the board, adding that raises for teachers and support staff account for roughly $10.6 million of the district’s obligations and that the state funding does not cover employer payroll taxes and benefit costs.

Stewart presented several revenue scenarios tied to incremental “pennies” in the Tier 2 portion of the M&O rate: “If 1 additional penny would generate … an additional $5,300,000,” she said; two pennies would yield about $10.6 million, and five pennies would generate roughly $26.9 million, which she said would produce an approximately $11.6 million positive outlook by the figures shown to trustees. She also warned trustees of recapture risk under Chapter 49: on the district’s estimates, a three‑penny increase could create a scenario in which roughly $1.1 million of additional revenue might be sent back to the state.

Board members framed the vote in terms of trade-offs between restoring positions and protecting long-term fiscal health. President Burns described prior staffing reductions and program cuts that have contributed to the district’s deficit and said some trustees view a modest tax increase — even with potential recapture — as a way to “start investing back in our programs again and start investing back in the outside of our classrooms again to really help impact the classes.”

Following the presentation and public Q&A, the board took several related actions recorded in the meeting minutes: it approved the official Chapter 49 notification for the 2025–26 recapture option and agreement, certified appraisal and collection rates, approved the tax-rate ordinance, and authorized a tax ratification election for Nov. 4, 2025. All recorded motions were approved unanimously.

Next steps noted by staff include completion of an efficiency audit (the audit firm will present in September) and public posting of that audit at least 30 days before any voter consideration of a local tax increase. The district confirmed the schedule for voter consideration would proceed in November if the board finalizes a voter-approval question.

The board’s approval does not itself change the tax rate; it sets the legal steps to present a voter‑approval measure to the district electorate and updates required notifications and certifications under Texas law.