Northwest ISD holds public meeting on 2025–26 budget and proposes lower tax rate amid rising values

District staff held a required public meeting on the 2025–26 budget and proposed tax rate, presenting assumptions about property values, growth and the effect of recent state changes before the board adopted the budget later in the same session.

The administration presented a proposed maintenance and operations (M&O) tax rate of 0.6522 and a debt service (I&S) rate of 0.421. The speaker noted that last year’s combined rate was about 1.0769 and that the proposed total would be about 1.0732 using preliminary figures.

Nut graf: The presentation emphasized that although the proposed rate is lower than last year’s rate, rising property values mean average homeowners may still pay more; administrators warned several variables could change the final rate and collections, including preliminary appraisals, homestead-exemption changes, and state-determined compression/recapture calculations.

District staff walked through key budget assumptions: 5% property value growth (applied after an estimated $1.5 billion reduction tied to homestead and over-65 exemptions), projected enrollment growth of about 1,100 students, a 5% increase in special populations, 98% tax collection rate and attendance assumptions near 94.7%.

Finance staff said preliminary taxable values cited during the presentation were approximately $40,000,000,003.95, down from an earlier preliminary high; outstanding bond indebtedness was described as about $2,000,000,000. The administration also described the new homestead and over-65 exemptions and noted some “hold harmless” mechanics apply only to property sold before Sept. 1. The presentation included a fund-balance discussion showing general fund balances carried into the budget.

Board members asked clarifying questions about compression (the amount of the M&O rate effectively available after state recapture rules), the “five golden pennies” that every district receives automatically, and how much of district revenue comes from local taxes versus the state. One trustee summarized: roughly 86% of district revenue per student came from local taxpayers and about 14% from the state under current assumptions.

The board later voted to adopt the FY2025–26 budget; the motion to approve the budget was made by Mrs. Hatfield, seconded by Mr. Spruill, and approved unanimously, 7–0.

Ending: Finance staff said the district will continue to refine figures as final appraisals and state templates arrive and will return with any required budget amendments or final tax-rate calculations once values and recapture/compression details are finalized.