Leander ISD asks voters to approve tax rate election amid growing budget gaps

LEANDER, Texas - School districts across Central Texas are looking for ways to bridge growing budget gaps. Now, some are turning to voters.

Leander ISD's budget gaps

Big picture view:

Leander ISD has already cut nearly $26 million from its budget over the last two years, but district leaders said they are still facing deficits ahead.

Last year, lawmakers approved House Bill 2, providing new state money to help districts increase pay for experienced teachers.

"It is great that our teachers got these raises. We are very appreciative of the state for providing that funding. However, there are operating costs related to those raises that were an increase to the tune of $1.6–1.7 million that we had to, with no additional funding, fund," Leander ISD Superintendent Chris Clark said.

Districts are also required to provide programs and services like special education, safety and security, Pre-K, and dyslexia support. The state provides some money for those requirements, but Leander ISD said it does not cover the full cost.

The district reported spending more than $20 million above what it receives to provide those mandated services, while the cost of insurance, utilities, and other services is also going up.

"With rising costs and with other mandates that have come in, so we’re adding in some places because we are required to do so, and then trying to find reductions to offset those increases, it is becoming challenging for all districts," Leander ISD Executive Director of Business Gina Mitschke said.

Leander ISD's VATRE proposal

Dig deeper:

Leander ISD is not the only district looking for a way to bring in more recurring money. Del Valle ISD, Georgetown ISD, and Round Rock ISD are also asking voters to approve a tax rate election this November.

A ‘VATRE,’ or Voter Approved Tax Rate Election, allows a district to raise its maintenance and operations tax rate, the money that pays for the day-to-day of running schools, including employee compensation.

For Leander ISD, the proposal is three additional pennies. The district expects that to bring in about $6.7 million after state recapture, and it could give the district an opportunity to provide employees with a one-time retention bonus this December.

The district said for a home with LISD’s 2026 average taxable value of $460,292, the passing of the School Funding Election would result in an estimated annual district tax bill of $5,141. Compared to last year, the average homeowner would pay $27.56 more per year or $2.30 per month.

If the election does not pass in November, the 2026-27 tax rate would return to $1.0869.

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