Tax Ratification Election

Why a TRE?

The Royal ISD Board of Trustees has called a Tax Ratification Election or TR­E for Tuesday, November 8, 2016. 

Royal ISD has proposed a change in the tax rate for the 2016­-2017 school year that will require voter approval. It is important to note this will require a restructuring of the tax rate but will not increase the tax rate.


School districts are funded through different sources: local tax dollars, state funding and federal funding. Local taxes are collected and go into two different funds or ‘pockets’– maintenance and operations or M&O and Interest and Sinking, or I&S. The M&O fund pays for the everyday operations of the District including books, student resources, salaries and building maintenance. The I&S is similar to a mortgage and pays for new facilities for the District which is anticipated to grow more than 350 students over the next five years. The state of Texas funds school districts based on a series of formulas that take into account our local tax rate; specifically the higher the local M&O tax rate the more funding we receive from the state of Texas. Therefore, each additional dollar generated by the local tax rate on the M&O side yields more funding from the state than a dollar generated on the I&S side.  

Our current tax rate is $1.04 on the M&O side and  $0.488817 cents on the I&S side for a total tax rate of $1.528817 cents for every 100 dollars of property valuation. That means for a house valued at $100,000, the school taxes would be $1,529 dollars per year. Because the school district wants to raise their M&O tax rate over a $1.04, the state of Texas requires voter approval. By law, the maximum M&O tax rate is $1.17.  

That’s where the TRE comes in.  

The Royal ISD Board of Trustees has called a Tax Ratification Election or TRE to ask the community to consider a change on how the District’s taxes are collected in the M&O and I&S funds to maximize state funding. The proposed change would bring the District an estimated additional one million six hundred thousand dollars from the state of Texas without increasing taxes.


How is this possible?   


The Board of Trustees has set the total tax rate at $1.658817. This will be the amount listed on the ballot. If a majority votes **FOR** the $1.658817 tax rate adopted by the board, our board has agreed to reduce the I&S tax rate from $0.488817 to $0.358817 returning the overall tax rate to $1.528817. So basically, voting for the TRE shifts the 13 pennies from the I&S pocket to the M&O pocket.   

The reason for moving the 13 pennies from one pocket to the other is that the state of Texas will give Royal ISD more state funding for M&O pennies than for the I&S or debt pennies.


This shift in tax pennies will not cost the taxpayer any additional tax rate.  It will generate an estimated one million six hundred thousand in additional revenue from the state of Texas. If the pennies don’t change the pocket to which they go, the District will not receive this additional funding from the state.

Based upon this plan, in the upcoming school year there will be no increase in the Royal ISD tax rate whether the Tax Ratification Election passes or fails.

The bottom line is...

If the TRE passes, Royal ISD will receive an estimated additional one million six hundred thousand dollars yearly and the tax rate will remain a $1.528817 for the upcoming year.

If the TRE does not pass, the tax rate will be a $1.528817 for the next school year but the District will receive no additional funding.   

The District and board of trustees have called the Tax Ratification Election, but the voters are the ones who decide the outcome of the election.  

Election day is on Tuesday, November 8th, 2016.  Early voting begins Monday October 24th and continues through Friday, November 4th.  To see a schedule of these early voting locations, visit the Waller County website at

Thank you for your commitment to Royal ISD's mission to take students "From the Classroom to the World" and to help us become the destination district. 

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