WACO, Texas — The Waco Independent School District Board of Trustees unanimously voted to reduce the 2023-2024 tax rate on Thursday, Aug. 24, approving a change they say will save an average of $650 for the average taxpayer.
School board members voted to reduce the tax rate for the coming year by 21 cents, bringing the total tax rate to $1.029 per $100 valuation, down from the previous year's rate of $1.242.
Waco ISD said they have cut the total tax rate for citizens by 38 cents per $100 valuation over the last five years.
“It is always good to be able to decrease a tax rate and be building new schools,” Waco ISD Board of Trustees President Stephanie Korteweg said.
Waco ISD said they calculate a tax rate based on current-year state-certified property values, which are determined by the McLennan Central Appraisal District. Waco ISD said their tax base increased to $9.1 billion this year, a 12.18% increase.
The Texas Education Agency says the calculation of state funding for school districts is tied to tax effort, so tax rates are an essential part of the state's school finance formulas.
The Board of Trustees is reportedly required to approve the reduction in the district's tax rate because of proposed increases in the homestead exemption, resulting in a 17.2% decrease in school property tax.
Because state lawmakers passed a bill to reduce property taxes, the formula calculating revenue for school districts has also changed. For school districts that see a decrease in local revenues due to the proposed homestead exemption increase, state revenue will increase.
Waco ISD Chief Financial Officer Sheryl Davis said property values are up 12.18% for the district, but local revenues are coming down.
“This year, we are getting about $2 million (from the state) to help offset the increase in the homestead exemption. The state increased the district’s funding by $200,000 to approximately 2.3 million,” Davis said. “This doesn’t end up having an impact on our general fund budget. The general fund is more impacted by attendance and enrollment.”
While property value growth in the Waco ISD area has been greater in commercial property, families' incomes have reportedly not increased the same way, with more than 90% of students qualifying as economically disadvantaged.
Waco ISD Superintendent Dr. Susan Kincannon says that while property values are increasing, that does not represent what is happening with families.
“When local residents pay their property taxes, they’re trusting us to be good stewards of their tax dollars and tonight’s action by our board demonstrates that it's a responsibility we take seriously,” Kincannon said. “We value the partnership we share with our families and their involvement in their students’ education. Helping them bring home more money in their paychecks is just one way that we can help our families in return.”
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