You’ve decided to “Rock the Vote.” You’ve stood in line, shown your ID to the no-nonsense volunteer, and now you’re in a tiny booth looking at the words on the screen. Ever find that you’re not completely sure what they all mean? Especially since Texas law requires specific language to be used, such as “This is a tax increase”, “Special Election”, “Ad Valorem”, it can make it more difficult to cast your vote “yay” or “nay”. Let’s break down the verbiage and cast your vote confidently!
What is a VATRE?
A VATRE is a Voter Approval Tax Rate Election, often referred to as a special election. In Texas, if a school district adopts a maintenance and operations (M&O) tax rate that is above what the state calculates for the district, voters must approve the higher rate. The M&O is just a portion of the overall property tax rate and is used primarily for the day-to-day operations of schools, including utilities, supplies, and salaries. Regardless of whether the rate increases your taxes specifically, you will still see the words, “this is a tax rate increase.”
What is a Bond Election?
A Bond Election is when a school district asks voters for permission to sell bonds and allow the district to raise the Interest and Sinking (I&S) tax rate. Bonds are sold to provide funding for capital improvements, including renovations to existing buildings, land acquisition, technology upgrades, the purchase of new buses, and the construction of new buildings. The bond is often broken down into separate propositions, oftentimes to ensure transparency and clarity. Each proposition is a spending category that encompasses a group of similar projects.
What is the Difference Between Bonds and VATREs?
Both elections are asking voters to provide school districts with access to funding. Bond funds, however, cannot be used to fund daily operations such as salaries or utilities, which are paid through the district’s Maintenance & Operations (M&O) budget. VATRE funds cannot be used to construct a new building, but they can be used to make repairs if the repairs are necessary in daily operations. If a school district is asking for a new building, think Bond. If a school district is asking for a pay raise for its teachers, think VATRE.
Which Districts are proposing Bonds and VATREs in the November 2025 election?
- Northeast Independent School District is currently seeking a $495 million bond proposal in this November election. The bond package is seeking to make facility upgrades, new school buses, and security upgrades.
- Marion ISD is asking the community to pass a $60 million bond proposal that will include a new elementary school, new buses, and facility repairs/ replacements.
- East Central ISD, Judson ISD, Boerne ISD, Schertz-Cibolo- Universal City ISD, La Vernia ISD, and Hays CISD are each asking voters to pass a VATRE to help fund day-to-day operations, to invest in safety, pay increases for teachers and staff, and lastly to maintain programs such as Pre-K, fine art, and athletics.
Why now?
State of Texas Proposition 13 will also be on your ballot and is asking “the constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation (property tax) by a school district from $100,000 to $140,000” of the market value of a homestead. If a property’s assessed value is $300,000, under the proposed amendment, $140,000 would be deducted from the assessed value for a new taxable amount of $160,000. Many of the ISD’s seeking a VATRE are leveraging the passing of Prop 13 in their solicitation, essentially asking for homeowners to share their potential tax savings with them.
Notes from the blogger: I’ve had the opportunity to sit with the facilities team leadership and superintendents of many districts to discuss their unique needs and goals. The common theme was a resounding “We need help”. If a district in your voting area is seeking a VATRE or Bond, please consider casting your vote in favor of providing them with much- needed support.
Written by Felipa Garza, Business Development Manager at Cleary Zimmermann
Connect with the author here: https://www.linkedin.com/in/felipa-g-063027197/
