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VATRE FAQs

  • VATRE FREQUENTLY ASKED QUESTIONS

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.

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 when we just had a Bond in 2023?

A VATRE is for the Maintenance and Operations (M&O) tax rate that supports the General Fund or day-to-day operations, such as maintaining student programs, retaining quality teachers and upholding safety and security standards, insurance and utilities. A bond election is for the Interest and Sinking (I&S) tax rate that supports the Debt Service Fund to pay bonds that finance things like new buildings, renovations, buses and equipment for safety and security.  By law, we cannot use funds approved by the voters from the bond election to pay for expenses paid for by the Maintenance and Operations, such as salaries.

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 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?

  • 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:

  • Staffing

  • Competitive Pay

  • Class Size

  • Scheduling

  • Elective Programs

  • Transportation

  • Athletic & Fine Arts Programs

  • 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?

No. Because the tax rate for homeowners 65 and older is frozen, they will not see an increase in their taxes as a result of the passage of the VATRE.  They will see a decrease in their tax rate because the 2023 tax rate is $.16 lower than the 2022 tax rate, even with the VATRE.

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.

 

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.

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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 our 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.

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.