What is a TRE?
The state of Texas funds school districts based on a series of formulas that take into account our local tax rate; specifically the higher the local M&O tax rate the more funding we receive from the state of Texas. Therefore, each additional dollar generated by the local tax rate on the M&O side yields more funding from the state than a dollar generated on the I&S side.
Local taxes are collected and go into two different funds or pockets: Maintenance and Operations (M&O), and Interest and Sinking (I&S). The M&O pocket pays for the everyday operations of the district like salaries, books, buses, and building maintenance. While the I&S pocket is similar to a mortgage and can only be used to pay the debt on school building bonds.
School districts are funded through different sources: Local tax dollars, State funding, and Federal funding.
A Tax Ratification Election (TRE) is a special election, called by the Board of Trustees, asking the voters to approve a tax rate that is above the $1.04 Maintenance and Operations (M&O) tax rate allowed by state law.
How will the TRE affect my taxes?
Our current tax rate is $1.04 on the M&O side and $0.28 cents on the I&S side for a total tax rate of $1.32 for every 100 dollars a property is worth. Because the school district wants to raise their M&O tax rate over a $1.04, the state of Texas requires voter approval. By law, the maximum M&O tax rate is $1.17.
To avoid an increase in the overall tax rate, Rivercrest ISD has opted to increase the M&O tax rate to $1.17, a difference of 13 cents, and REDUCE the I&S tax rate to 15 cents.
This shift in pennies will bring Rivercrest ISD an additional $600,000 annually in State Funding without increasing your tax rate.