VATRE FAQs

A Voter-Approval Tax Rate Election (VATRE) is a school funding election allowed by the State Legislature that asks local voters to approve a Maintenance & Operations (M&O) tax rate higher than the maximum amount the district could otherwise adopt under state statute without voter approval.

If a school district seeks an M&O tax rate that exceeds the state-allowed maximum, a VATRE must be held to gain that approval. The additional revenue generated may be used for day-to-day operating expenses such as staff compensation, utilities, transportation, safety and security, and instructional materials.

No. A VATRE is not a bond election, and it does not create debt or borrowing of any kind. It is strictly an operation-revenue measure, separate from the district’s bond/debt obligations.

Bond elections fund the construction of new buildings, renovations, equipment, and other capital projects. Bonds are repaid through the district's Interest & Sinking (I&S) tax rate.

A VATRE is a school funding election that provides operating revenue through the district's Maintenance & Operations (M&O) tax rate and funds day-to-day operations rather than construction.

A VATRE (Voter-Approval Tax Rate Election) is the process school districts use when they need to set a Maintenance & Operations (M&O) tax rate higher than the state-allowed threshold.

The process typically works like this:

1. The Board of Trustees proposes a new M&O tax rate that exceeds the state threshold, usually in response to identified budgetary needs.
2. The district holds a public hearing to explain why the higher rate is needed and how the additional revenue will be used.
3. The proposal is then placed on the ballot for voter approval. A majority of voters must approve it for the higher rate to take effect.
4. If approved, the district can implement the new tax rate and use the additional funds as planned.

What you will see on the ballot

State law sets the exact ballot language for this type of election. As a result:

• The measure will appear as “Proposition A” (the state-mandated label), not as “VATRE.”
• The ballot will include the required statement: “This is a property tax increase.” This language is mandated by state law for every VATRE, regardless of a district’s specific circumstances.

Voters in the November 3 election will see the proposition listed under this required format.

Yes, more than 600 Texas districts have passed a VATRE. Some of these districts include our neighbors in Deer Park ISD, Friendswood ISD, Pearland ISD, Galena Park ISD, Barbers Hill ISD, Goose Creek CISD and Pasadena ISD.

Like many Texas school districts, La Porte ISD is facing rising operational costs due to inflation, while state funding has not kept pace. The state increased the Basic Allotment by $55 in 2025 (from $6,160 to $6,215) — the first adjustment since 2019 — while the Consumer Price Index has risen approximately 17% over that period.

The district's adopted budget for 2026-27 reflects a $12.3 million deficit.

Texas school districts are funded through a combination of local property tax revenue and state funding. With student enrollment declining across the state, including a decline of approximately 140 students in La Porte ISD last year, one of the tools available to the district under state law is a VATRE to increase the M&O tax rate.

For much of the past decade, La Porte ISD's M&O tax rate has included "disaster pennies,” which are additional cents made available by the state only after a qualifying disaster declaration. These pennies are contingent year to year on the state granting disaster status; they are not a stable or guaranteed source of funding.

The 12 cents on the November 3 ballot would make this funding part of a locally-controlled, voter-approved rate, rather than a rate contingent each year on state disaster designation

Under Texas school finance law, districts' M&O tax rate is made up of a state-compressed rate plus additional “enrichment” pennies. The eight enrichment pennies (“golden pennies”) are not subject to recapture. Additional pennies beyond that threshold (“copper pennies”) are subject to recapture.

Currently, LPISD utilizes five golden pennies that are granted to all school districts. The 2026 VATRE asks voters to consider granting the remaining three golden and nine copper pennies.

In total, the VATRE, if approved, would give the La Porte ISD access to approximately $8.4 million in additional net revenue, which is approximately 6% of the general fund budget. The additional funding will pay for inflationary costs associated with running a school district. If approved, this would result in a potentially slight tax rate increase due to tax rate compression by the State. 

La Porte ISD is subject to recapture (sometimes called “Robin Hood”), a part of the Texas school finance system that requires property-wealthy districts to send a portion of local M&O tax revenue to the state, which redistributes it to districts with lower property wealth per student. Over the past 31 years, La Porte ISD has sent more than $812 million to the state through recapture.

District-wide, approximately 37% of M&O revenue is recaptured by the state. Of the estimated gross revenue this VATRE would generate, the district's current estimate is that approximately 53% would be subject to recapture, leaving approximately $8.4 million net for local use.

If the VATRE passes, La Porte ISD will use this revenue for:

• Employee compensation
• Rising property insurance costs
• Fuel and utility costs
• Continued staff training and instructional materials

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:

• Staffing

• Competitive Pay

• Class Size

• Scheduling

• Elective Programs

• Transportation

• Athletic & Fine Arts Programs

• Potentially Consolidate Schools

La Porte ISD is fiscally conservative while providing opportunities and award winning programs to our students. Our spending is comparable to our neighbors; however, because of our physical proximity to the bay, our property insurance is higher than surrounding districts of our size.

La Porte ISD has controls in place to safeguard against irresponsible spending. 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.

Learn More about LPISD's Financial Transparency

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 23 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 12 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 8 times.

For 10 consecutive years, La Porte ISD has earned the Texas Comptroller of Public Accounts – Transparency Stars for Traditional Finances and Debt Obligations.

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).

If the VATRE passes, the new funding will be available to serve students during the current fiscal year.

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.

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.

If the VATRE passes, the District’s M&O tax rate will be $.7954. This is $.0068 less than it was in 2025 due to the decrease in the MCR (Maximum Compressed Rate) by $.0068.

If the VATRE passes, LPISD's total tax rate would go from $1.0641 to $1.0673, which equates to about $4 per year for the average homeowner. The actual dollar impact on an individual tax bill depends on a home's taxable value after all applicable exemptions.

La Porte ISD's total tax rate (1.0641) is the 3rd lowest among the local area districts compared below:

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.