The financial health of Texas public schools is in jeopardy as districts across the state report substantial budget shortfalls. These deficits are driven by rising operational costs, the expiration of federal pandemic relief funds, and a stagnation in state funding. In 2024, nearly 80% of surveyed districts reported financial challenges, and over half expected budget deficits, signaling a growing crisis for Texas public education. This article, with a case study of Marble Falls ISD, explores the reasons behind these deficits and potential solutions, mainly focusing on local measures such as VATREs and bond elections. Budget challenges One of the primary reasons Texas school districts are experiencing financial divculties is inflation. Costs associated with utilities, insurance, and fuel have risen significantly since 2019, while state funding for public education remains stagnant, exacerbating the problem. Furthermore, the expiration of federal pandemic relief funds has left many districts without resources. The situation is especially dire in large districts like Austin ISD and Dallas ISD, which grapple with deficits of $89 million and $186 million, respectively. Smaller districts face unique challenges, often struggling with declining enrollment and lower property tax revenues. Legislative inaction While state leaders approved a $4 billion funding increase for public education, these funds have yet to be distributed. Despite a historic $32 billion state budget surplus, some of which is collected through recapture payments (a system where wealthier districts send money to the state to be redistributed to poorer ones), no action has been taken. The lack of legislative action has placed even more pressure on districts to find local solutions to their financial problems. This is where measures like VATREs (Voter-Approved Tax Rate Elections) and bond elections become crucial tools for districts looking to address budget shortfalls. Local solutions Districts across Texas are turning to VATREs and bond elections to generate additional revenue. These two funding mech-anisms serve diuerent purposes and can be misunderstood by the public: VATREs focus on funding day-to-day operating expenses such as teacher salaries, utilities, and insurance. If voters approve, a VATRE increases the district's maintenance and operations (M&O) tax rate without impacting the interest and sinking (I&S) tax rate. Bond elections, on the other hand, function more like mortgages and can only be used for capital improvements like building new schools, upgrading facilities, and purchasing land. Approved bonds temporarily increase the district's I&S tax rate. In all cases, property taxes for residents over 65 or those with disabilities are typically unauected if they have the appropriate exemptions. Marble Falls ISD Marble Falls ISD (MFISD) provides a compelling example of how a district can take proactive steps to manage budget deficits. Like many Texas school districts, MFISD has faced significant financial challenges due to insufficient state funding. The district's board of trustees called for a VATRE election on November 5. If approved, this VATRE would generate approximately $2.2 million annually, helping the district maintain its current class sizes, retain teachers, and continue funding critical student programs. This initiative includes a modest $0.0223 increase to the M&O tax rate, raising property taxes by roughly $2.23 monthly for every $100,000 of taxable home value. Without this additional funding, Marble Falls ISD may have to make divcult budget cuts, including reducing stau and eliminating student programs. The VATRE is not only a financial lifeline for the district but also a way for the local community to have a direct say in the future of their schools. Community role The current budget crisis in Texas schools underscores the importance of community involvement in education funding decisions. Local taxpayers play a pivotal role in deciding whether districts will have the financial resources they need to provide a high-quality education to all students. For Marble Falls ISD, the upcoming VATRE election is an opportunity for the community to invest in the district's future.
Moreover, voters across the state must carefully consider VATRE and bond proposals in their districts. These local measures are often the only immediate solution for districts facing budget deficits, as state funding remains inadequate and uncertain. Addressing the crisis Texas public schools are at a crossroads. With rising costs, declining state support, and the expiration of federal relief funds, many districts are forced to make divcult choices about the future of education. Local measures like VATREs and bond elections ouer a way forward, allowing communities to take control of their district's financial future. However, long-term solutions will require legislative action to ensure that state funding keeps pace with inflation and operational costs. For those interested in learning more about how their local school district is managing budget challenges or participating in upcoming VATRE and bond elections, visit your district's website or attend public forums. Voters who live in Marble Falls ISD will have the opportunity to cast ballots in the VATRE during early voting which lasts from Monday, October 21, to Friday, November 1 or on Election Day, which takes place Tuesday, November 5. For more information, visit www.loveinspireachieve.
com/
Kevin Virdell is vice president of the Marble Falls ISD board of trustees.
