Election season is finally upon us, and while many are heavily focused on federal and state elections, one of the important issues that will appear on millions of Texan’s ballots are propositions with a direct impact on their pocket book.
Many Texas voters face these propositions from their school districts and local governments, which are seeking bond approvals and tax rate increases. Though these measures often come with a rosy promise of improvements in infrastructure or community resources, they come with a high cost for Texas taxpayers, particularly in the form of rising property taxes and new debt.
Most of these propositions deserve intense scrutiny from voters. This is especially true as Texas taxpayers face the continued effects of the Biden/Harris economy, and the highest property taxes in Texas History. And if passed, they will significantly raise property taxes even further for homeowners and business owners alike.
School Districts
For example, Rockwall ISD in North Texas is presenting voters with four propositions: a Maintenance and Operations (M&O) property tax rate increase, and three bonds.
The M&O rate increase is significant, which, if approved by voters, will result in a 17% increase in their school M&O tax rates, for more than $16 Million in new taxes.
The three other propositions include bonds for the purchase of “school facilities and buses,” “Technology equipment,” and improvements to “stadium facilities,” all totalling nearly $850 Million in new debt for the local taxpayer. This, of course, must be funded by more property taxes. This is a staggering amount of new debt that Rockwall ISD is seeking to place on the shoulders of current and future property owners.
Other schools across the State, are asking voters for more debt and taxes, such as Allen ISD with a 447 million dollar bond package, Austin ISD with a 8.3% tax rate increase, Round Rock ISD with nearly one billion dollars in new bonds, and Manor ISD with an 8.2% tax rate increase.
Cities and Counties
But it’s not just schools. Cities and counties are also seeking more money from Texans’ wallets this November. For example, Travis County is asking for a tax rate increase for taxpayer-subsidized child care, and the City of Sugar Land is asking for over 300 million dollars in new bonds.
An Already Heavy Load for Texans
Texans already face one of the highest property tax burdens in the United States, reaching a ranking of 6th most burdensome out of all 50 States. Property tax bills have steadily increased over the years, rapidly increasing over the last two decades. While many rightly point out that Texas does not have an income tax, the issue is not a revenue problem, but rather a spending problem. For example, other states that do not impose an income tax, such as Florida and Tennessee, have property tax burdens of 26th and 37th, respectively. Approving additional bonds and tax rate hikes will further escalate this burden, making home ownership more challenging and pushing some families and retirees toward unaffordability.
For families already struggling to keep up with escalating housing costs, this added strain could have lasting consequences, including an inability to build generational wealth through homeownership.
Critique of School District Bond Proposals
School districts frequently argue that bonds are necessary for updating aging facilities, expanding classroom capacity, and improving safety measures. While these are legitimate goals, the high price tags and the extensive debt that taxpayers must assume call for greater caution. In many instances, bond proposals include unnecessary expenditures, such as state-of-the-art athletic facilities and administrative buildings that do not directly enhance educational outcomes. The push for luxury upgrades can prioritize vanity projects over core educational needs, misallocating funds away from initiatives that could have a more immediate impact on student achievement.
Additionally, past bond measures have sometimes been poorly managed, leading to cost overruns and delayed projects. In a fiscally responsible framework, school districts should prioritize efficient, cost-effective solutions rather than continually requesting additional taxpayer funds.
Local Government Spending: Questioning the Need for Higher Taxes
Local government bond proposals are similarly concerning. Transportation improvements, building renovations, and park enhancements are common items on these ballots, but they often come with steep price tags. Local governments tend to emphasize the potential benefits of these projects but rarely address the broader economic impact of tax hikes, particularly on small businesses and homeowners on fixed incomes. For many small business owners, higher property taxes can mean the difference between staying open and shutting down.
Local governments should focus on long-term sustainability and responsible budgeting. Rather than continually increasing taxes and issuing bonds, municipalities should look to cut wasteful and inappropriate spending.
Long-Term Debt Implications for Texas Taxpayers
Bond debt is essentially deferred taxation; though voters today approve these measures, future taxpayers bear the repayment burden. Texas local governments already carry hundreds of billions in outstanding bond debt, which will require decades of repayment. As interest accrues over time, the total amount taxpayers owe balloons far beyond the initial bond amounts, making these measures even more costly. The long-term implications of debt-funded projects are rarely discussed openly, leaving many voters unaware of the true cost.
Potential Alternatives to Bond Funding and Tax Increases
Before turning to bonds and tax rate hikes, Texas school districts and local governments should explore alternative funding options that do not place an additional burden on taxpayers. For instance:
- Private Funding and Donations: Many communities have affluent businesses or individuals willing to contribute to specific projects. Local entities could engage in fundraising efforts, especially for non-essential amenities like sports facilities or beautification projects.
- Reallocation of Existing Budgets: Rather than continuously expanding budgets, school districts and governments could audit their existing budgets to identify waste and inefficiencies. By reallocating funds from underutilized or wasteful programs, or administrative expenses, they could potentially fund necessary projects without new bonds.
- User Fees: For parks, recreational facilities, or specific amenities, a user fee structure could offer a fairer alternative to blanket tax increases. Those who use the facilities would bear the cost, rather than requiring all taxpayers to contribute.
- Efficiency Audits: Conducting regular efficiency audits can help local entities uncover savings opportunities. Audits can reveal areas where services might be provided more economically or where redundancies could be eliminated, making it easier to redirect funds to more pressing needs.
A Call for Fiscal Responsibility
Texans take pride in a history of limited government, low taxes, and fiscal restraint.
However, the dramatic increases in government spending, debt and property taxes undermines this tradition. Each bond proposition and tax rate increase on the November 5th ballot represents a significant financial burden on taxpayers. While these proposals are often presented as essential to community and educational improvement, many contain unnecessary expenditures or could be funded through more effective means.
Voting against these measures sends a message that Texans value responsible financial management and reject increases in the tax burden. The question that voters must ask themselves by November 5th is this: Do these schools and governments really need to tax me more?
Taxpayers across the State have an opportunity to send a message to their local governments: If we have to live within our means, so should the government.
We’re not the government’s perpetual piggy-bank.
Texans for Fiscal Responsibility relies on the support of private donors across the Lone Star State in order to promote fiscal responsibility and pro-taxpayer government in Texas. Please consider supporting our efforts! Thank you!
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