ISD voters in the northwest rejected the tax increase. What impact will it have on Fort Worth County?

After a failed referendum on Nov. 5, Northwest ISD will impose a new tax rate for the 2024-25 school year.

Northwest ISD residents voted against a proposed 3-cent increase in the district’s tax rate to cover the district’s deficit. In turn, the Board of Trustees was forced to approve a lower-than-expected rate for the 2024-25 school year at its Nov. 11 meeting.

With 55.8% of county residents rejecting the proposed increase, the county’s newly approved rate represents a reduction from the previous fiscal year. Trustees unanimously set the maintenance and operations tax rate, which funds daily operations, at 66.69 cents per $100 valuation, while the interest and sinking rate, which finances debt payments, was set at 42.10 cents per $100 valuation.

The sum of the two gives the county’s overall tax rate: $1.0879 per $100 assessment, just below the 2023 tax rate of $1.0902 per $100 assessment.

According to meeting documents, that rate will still impose more taxes on the district’s day-to-day operations than last year’s rate because the 31,000-student district’s enrollment increased by about 1,500 students and its taxpayer base expanded.

Still, officials want to increase class sizes to further mitigate the district’s nearly $16 million budget deficit, the district said in a statement after the election results were released.

“Northwest ISD will now analyze larger class sizes as well as additional operations with a view to further possible changes,” the district said. “Any possible change will be considered as carefully as possible to maintain the high quality of instructional programs and services that families have come to expect from Northwest ISD.”

In 2023, the average home in Northwest ISD had an assessed value of $552,605, according to the district. However, only $420,208 of the value was used for taxes, resulting in an average property tax bill for Northwest ISD residents of $4,581.11.

In 2024, the average home in Northwest ISD had a market value of $527,881, with a net taxable value of $393,911, according to district data. With the assumed tax rate, the new average property tax burden will be $4,285.36.

This represents an average decrease of $295.75 from last year’s tax bill as property values ​​across the county also declined on average.

But using the assumed tax rate as a reference to last year’s assessment numbers, the average property tax bill for Northwest ISD with the tax rate reduction would have been $4,571.44 – just $10 less than what the average homeowner in the paid in 2023.

Northwest ISD will see increased tax revenue as more students and businesses move to the area, according to district documents.

According to the county, the total assessed value of all properties in the county increased by nearly $3 billion between 2023 and 2024.

However, revenue growth will not be enough to offset the district’s budget deficit, which has increased sharply in recent years. Northwest ISD’s rapid enrollment growth has outpaced stagnant state funding, the district said.

While officials are seeking to increase class sizes for now, the district will continue to advocate for state lawmakers to adequately fund public schools, the release said. The state has not increased its funding to districts since 2019.

“School districts are facing unprecedented decisions that directly impact instruction, and it is time for our state leaders to do what is right for the 5.5 million children in Texas public schools,” said Superintendent Mark Foust.

Matthew Sgroi is an education reporter for the Fort Worth Report. Contact him at [email protected] or @matthewsgroi1.

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This article first appeared on the Fort Worth Report and is republished here under a Creative Commons license.