VATRE FAQs
What is a VATRE?
VATRE stands for Voter Approval Tax Rate Election. It is an election allowed by the State Legislature to approve a tax rate increase that generates additional revenue for public schools.
If a school district adopts a maintenance & operations (M&O) tax rate that exceeds the maximum amount allowed by state statute, a VATRE must be held to gain voter approval to raise the tax rate.
How does a VATRE work?
The process for a VATRE involves several steps. First, the school district’s board of trustees proposes a new M&O tax rate that exceeds the state threshold. This proposal is often developed in response to budgetary needs identified by the district.
Before calling for a VATRE, the district must hold a public hearing to explain the need for the increased tax rate and how the additional revenue will be used. The proposed tax rate increase is then put to a vote. For the VATRE to pass, a majority of voters must approve the increase. The item to be voted on will be on the November 5th ballot.
If the VATRE is approved by voters, the district can implement the new tax rate and allocate the additional funds as planned.
Have other school districts passed VATRE measures?
Yes, more than 600 Texas districts have passed a VATRE. Some of these districts include our neighbors in Deer Park ISD, Friendswood ISD, Goose Creek CISD and Pasadena ISD.
Why is LPISD considering a VATRE?
La Porte ISD is facing a financial crisis due to the rise of inflationary costs and the lack of adequate funding provided by the state of Texas. The state increased the basic student allotment by $55 in 2025 (from $6,160 to $6,215), which was the first adjustment since 2019. While we appreciate the increase, it does not meet the 17% increase in inflation shown by the Consumer Price Index since that time.
School districts are funded in two ways – tax revenue and statue funding. The only way to increase funding to cover the costs related to inflation is to increase enrollment and student attendance and to increase the M&O tax rate.
Student enrollment has decreased across the state of Texas in the past few years, with La Porte ISD losing approximately 140 students last year. While we encourage and promote student attendance for the benefit of the student’s education, the school district is ultimately not in control of a student’s attendance.
How much additional funding would the VATRE provide for LPISD?
In total, the VATRE, if approved, would give the La Porte ISD access to approximately $8.5 million in additional revenue, which is 6% of the general budget. The additional funding will pay for inflationary costs associated with running a school district. If approved, this would not result in a tax rate increase due to tax rate compression by the State. Without passing a VATRE, the district would not receive the additional state funding and the LPISD would have to make significant expenditure reductions.
What happens if a VATRE does pass? How will LPISD spend that money?
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If the VATRE passes, La Porte ISD will use this revenue for employee compensation, rising inflationary property insurance, gasoline and utility expenses and to continue to provide the highest level of training and teaching materials to our staff to teach our students.
What happens if a VATRE does not pass? What will that impact?
La Porte ISD will need to make very difficult budget decisions moving forward. These decisions could impact programs, staffing ratios and more. The district will need to make budget cuts, which could impact:
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Staffing
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Competitive Pay
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Class Size
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Scheduling
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Elective Programs
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Transportation
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Athletic & Fine Arts Programs
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Potentially Consolidate Schools
What is the impact of the Voter-Approved Tax Rate Election to the tax rate?
If the VATRE passes, the District’s M&O tax rate will be $.8120. This is $.1626 less than it was in 2022 due to the State Legislative property tax relief amendments to increase the Homestead Exemption from $40 K to $100 K and to decrease the MCR (Maximum Compressed Rate) by $.1017.
Will homeowners 65 years of age and older be impacted by the passage of the VATRE?
Citizens aged 65 and older who have applied for and been granted the Over-65 Homestead Exemption will not see an increase in their school taxes if the VATRE is approved.
The homestead tax ceiling sets a limit on the amount of school taxes you pay. Once you qualify for an Over-65 or Disabled Person Homestead Exemption, your school taxes are frozen at the amount you paid in the year you became eligible.
Your school taxes may decrease below the ceiling if rates or property values change, but they will never rise above it.
How does our tax rate compair to other districts?
School Districts will calculate and adopt their 2023 tax rates from August - October 2023.
In 2022, La Porte ISD’s tax rate was the 3rd lowest tax rate in the area.
What is the difference between the M&O Tax Rate and the I&S Tax rate?
The Maintenance and Operations (M&O) tax rate supports day-to-day operations for the district, including teacher salaries, utilities, property insurance, safety & security, transportation expenses, etc.
The Interest and Sinking (I&S) tax rate is used to pay back funds the district has borrowed to build new schools, do major renovations, etc. The I&S fund is also called the Debt Service fund since the money can only be used to pay off debt and not for day-to-day operations like salaries.
How does our spending compare to our peers?
Every district that would like to hold a VATRE must conduct an efficiency audit to determine how fiscally responsible they are compared to other like-sized districts. Please see the efficiency audit results on the website.
What has LPISD done to reduce expenses?
La Porte ISD is a financially conservative district that has controls in place to safeguard against irresponsible spending. We work diligently to be as efficient as possible to ensure that the funds spent are stretched as far as possible. Staffing and campus needs are discussed throughout the year to identify cost savings. Unfortunately, the savings we have uncovered are needed to pay for increasing costs due to inflation.
What are the district’s options to increase revenue?
School districts can increase revenue for their district by increasing student enrollment and attendance. They can also increase revenue by asking the voters in their district to consider increasing the M&O (Maintenance & Operating) tax rate to include the additional $.12 that the State allows school districts to add to their tax rate. To have access to the additional $.12, the district must call for a Voter-Approval Tax Rate Election (VATRE).
How soon will the district receive the money if the VATRE passes?
If the VATRE passes, the new funding will be available to serve students during the current fiscal year.
My property values continue to rise. Does that mean the school districts tax revenue increases?
Rising property values leads to an increase in the amount of tax revenue collected, but this does not mean the school district sees an increase in revenue. There is a relationship between local and state funds where when local tax collections increase, state funds to a school district decrease.
Rising property values do generate additional tax dollars; however, not all of those tax dollars are retained by the district. Excess tax collections are sent back to the state through recapture.
How has La Porte ISD been recognized as a good steward of tax dollars?
La Porte ISD’s bond ratings are Aaa/AA+, the highest ratings assigned to Texas school districts by Moody’s and Standard & Poor’s rating agencies.
For 21 consecutive years, La Porte ISD has earned the highest rating of “Superior Achievement” in the state’s School FIRST (Financial Integrity Rating System of Texas) program.
For 9 consecutive years, La Porte ISD has received the GFOA Certificate of Excellence in Financial Accounting and the ASBO Certificate of Excellence in Financial Reporting
La Porte ISD has received the TASBO Award of Merit for Purchasing Operations 5 times.