The overview
The rate breaks down into on a $0.7552 maintenance and operation rate, which is used to fund most district operations, and a $0.45 interest and sinking rate used to service debt.
The $1.2052 rate is the same as the FY 2024-25 rate, with no increase or decrease.
What's next
During the district's budgeting process, HISD Chief Financial Officer Caleb Steed said the district's proposed budget and tax rate could be impacted as a result of the Nov. 4 election, in which a proposed $40,000 increase to the $100,000 homestead exemption will be decided by Texas voters.
Steed said the district's projected $968,493 in recapture could also be lowered depending on the outcome of the November election.
Senate Bill 4, a measure to increase the homestead exemption from $100,000 to $140,000, will appear on the ballot in November. Should it pass, Steed said the reduction in the district's overall taxable value could also lower the amount owed to the state in recapture.
