**Tyler ISD Board Addresses State Funding Amid Budget Planning, Approves Staff Raises**
Tyler, TX – The Tyler Independent School District's Board of Trustees adopted two significant resolutions on May 21st, addressing state-mandated changes under House Bill 3 (HB 3) that are expected to have a considerable impact on local property tax revenue, even as the district moves forward with its budget for the upcoming school year, which includes a 2% pay raise for all staff.
The resolutions, titled "Resolution Regarding School Property Value Limitation" and "Resolution Regarding the School District Maintenance and Operations Tax Rate," directly respond to HB 3. Passed by the 88th Texas Legislature last year, the law mandates an increased homestead exemption for property owners, requiring districts like Tyler ISD to adopt a "zero tax rate" on the first $100,000 of a homestead's value. For homeowners aged 65 or older, or those with disabilities, this exemption extends to the first $110,000, plus an additional $10,000. These changes effectively compress the district's Maintenance and Operations (M&O) tax rate.
During the meeting, the Board expressed concern that while the state has imposed these property tax reductions, it has not fully funded the resulting loss of local revenue. The resolution specifically highlights worries about a "significant loss of local revenue" due to the state's inadequate compensation for the mandated tax rate compression.
In parallel, Superintendent Dr. Steven Schoonmaker presented the district's Proposed Budget for the upcoming academic year at the same May 21st meeting. A public hearing on the proposed budget is scheduled for Monday, June 17th, with the final adoption of the budget set for Tuesday, June 25th. A key component of the proposed budget is a 2% pay increase for all Tyler ISD staff.
The formal adoption of the new, compressed tax rate, resulting from the HB 3 mandates, is anticipated at a later Board meeting, likely in August or September. This timing allows for the district to receive certified property values from the local Appraisal District. However, the foundational changes introduced by HB 3, including the "zero tax rate" on specified portions of homestead values, are already in motion.
For more information on Board meetings and district budget details, visit the Tyler ISD website at https://www.tylerisd.org. The legislative changes originating from the State Capitol in Austin will continue to shape district finances across Texas.
