School Funding Election
Malakoff ISD
School Funding Election
Voter Approved Tax Rate Election
On August 17, 2026, the Malakoff ISD Board of Trustees approved a School Funding Election or Voter-Approval Tax Rate Election (VATRE) on the November 3rd ballot. The proposition asks voters to consider the addition of three “Golden Pennies,” not subject to recapture, to be applied to the MISD Maintenance and Operations (M&O) fund.
The Golden Pennies would generate an estimated total increase of about $947,000 in additional funding to the general operating budget. This additional funding would be used for key funding priorities, including teacher and staff compensation, maintaining lower class sizes, student programs and services, and facilities maintenance and operations.
The Trustees also voted to lower the Interest and Sinking (I&S) tax rate by $0.03. This reduction fully offsets the proposed addition of $0.03 to the Maintenance and Operations (M&O) rate, which means that if voters approve the M&O tax rate increase, the overall tax rate will remain unchanged for taxpayers.
Why Did the Malakoff ISD Trustees Call a VATRE?
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The Malakoff ISD Trustees have been strong financial stewards, ensuring the district has the I&S funds needed to pay off district debt. Interest and Sinking funds, however, cannot be used for day-to-day operational costs in the district. For this reason, the Trustees voted to lower the I&S tax rate by $0.03 and called for the November 2026 VATRE to ask for a $0.03 increase in the M&O tax rate. Maintenance and Operations funds are used for staff and teacher salaries, utility bills, insurance, and supplies, but adding three pennies to the M&O rate requires voter approval.
Typically, Maintenance and Operations funds that exceed or “overflow” the funding bucket are subject to recapture by the state. As local revenue increases, state funding decreases. If voter-approved, however, the $0.03 increase to the M&O fund would be “Golden Pennies,” not subject to recapture by the state, resulting in an estimated $947,000 in additional discretionary revenue for Malakoff ISD.
Taxpayer Impact
Because the MISD Board of Trustees voted to decrease the I&S tax rate by $0.03, the M&O tax rate increase of $0.03 (if voter-approved) would result in a net-zero change to the overall tax rate.
+3 M&O Rate
- 2025-2026 Tax Rate = $0.66
- 2026-2027 Tax Rate = $0.69 (if voter-approved)
-3 I&S Rate
- 2025-2026 Tax Rate = $0.25
- 2026-2027 Tax Rate = $0.22 (board-approved 8/17/26)
Total Rate
- Current (2025-2026): I&S $0.25 + M&O $0.66 = Total $0.91
- Proposed (2026-2027): I&S $0.22 + M&O $0.69 = Total $0.91
FAQ
A Voter-Approval Tax Rate Election (VATRE) is a special election in which a Texas school district asks voters to consider the approval of an increase to the district’s maintenance and operations (M&O) tax rate above the state-mandated threshold.
Currently, for every $100 a property is worth, the district keeps $0.66 for Maintenance and Operations. Everything else goes back to the state in recapture. There are 8 cents, or “golden pennies,” above the tax rate potentially available to school districts that are NOT SUBJECT TO RECAPTURE. Five pennies are available through school board approval. MISD currently takes these five pennies. Three additional pennies require voter approval. If voter-approved, 3 additional “Golden Pennies” could generate around $947,000 in Maintenance & Operations funds.
The overall tax rate will remain unchanged for taxpayers if voter-approved.
At the current tax rate, per $100 valuation, $0.66 goes toward the M&O rate and $0.25 goes toward the I&S rate, with a total rate of $0.91. If the VATRE passes, $0.69 will go toward the M&O rate, with $0.22 going toward the I&S rate, leaving the tax rate at $0.91.
|
Tax Rates per $100 Valuation |
|||||
|
|
Current (2025-2026) |
|
VATRE (2026-2027) |
|
Overall Change |
|
M&O Rate |
0.66 |
|
0.69 |
|
+ 0.03 |
|
I&S Rate |
0.25 |
|
0.22 |
|
- 0.03 |
|
Total Rate |
0.91 |
|
0.91 |
|
$0 |
Maintenance and Operational tax rate funds go towards the day-to-day operations of Malakoff ISD. Reducing the I&S rate by $0.03 and increasing the M&O rate by $0.03 would increase MISD discretionary funds by an estimated $947,000. Funding priorities include the following:
- Staff & Teacher Salaries and Compensation
- Student Services and Programs
- Instructional Supplies and Technology
- Facilities Maintenance and Operations
-
A Voter-Approval Tax Rate Election (VATRE) is a special election in which a Texas school district asks voters to consider the approval of an increase to the district’s maintenance and operations (M&O) tax rate above the state-mandated threshold.
-
Currently, for every $100 a property is worth, the district keeps $0.66 for Maintenance and Operations. Everything else goes back to the state in recapture. There are 8 cents, or “golden pennies,” above the tax rate potentially available to school districts that are NOT SUBJECT TO RECAPTURE. Five pennies are available through school board approval. MISD currently takes these five pennies. Three additional pennies require voter approval. If voter-approved, 3 additional “Golden Pennies” could generate around $947,000 in Maintenance & Operations funds.
-
The overall tax rate will remain unchanged for taxpayers if voter-approved.
At the current tax rate, per $100 valuation, $0.66 goes toward the M&O rate and $0.25 goes toward the I&S rate, with a total rate of $0.91. If the VATRE passes, $0.69 will go toward the M&O rate, with $0.22 going toward the I&S rate, leaving the tax rate at $0.91.
Tax Rates per $100 Valuation
Current (2025-2026)
VATRE (2026-2027)
Overall Change
M&O Rate
0.66
0.69
+ 0.03
I&S Rate
0.25
0.22
- 0.03
Total Rate
0.91
0.91
$0
-
Maintenance and Operational tax rate funds go towards the day-to-day operations of Malakoff ISD. Reducing the I&S rate by $0.03 and increasing the M&O rate by $0.03 would increase MISD discretionary funds by an estimated $947,000. Funding priorities include the following:
- Staff & Teacher Salaries and Compensation
- Student Services and Programs
- Instructional Supplies and Technology
- Facilities Maintenance and Operations
Voter Information
Make a plan to vote on November 3, 2026 (in-person early voting begins October 19th). The last day to register to vote in the November 3rd election is October 5, 2026. See the links below for more information, including Henderson County election information, voter registration information, and the full community VATRE Information presentation.