The Bottom Line Up Front 

If taxpayers approve Cypress-Fairbanks ISD’s proposed Maintenance and Operations tax-rate increase and bond package on November 3, northwest Houston taxpayers will face an 18 percent M&O rate hike and roughly $3.2 billion in new principal and interest. Added to the district’s existing debt of about $4.6 billion, total commitments would exceed $7.8 billion. The school board advanced both measures by a 6–1 vote; Trustee Christine Kalmbach cast the sole opposing vote, citing the burden the package would place on residents. Enrollment has already fallen from its recent peak, and the district’s own budget projects further decline, leaving multiple campuses operating below capacity.

A Tax Rate Increase and Multi-Billion-Dollar Debt Package

Cypress-Fairbanks ISD is asking taxpayers on November 3¹ to lock in an 18 percent increase in the M&O property tax rate, as well as authorize $1.636 billion in new debt across four bonds, expected to carry roughly $1.6 billion more in interest. The board placed both the voter approval tax rate election (VATRE) and the bond propositions on the ballot by a 6–1 vote.² Trustee Christine Kalmbach alone opposed the package, saying many residents would struggle to live paycheck to paycheck with the increased tax burden.³ 

The VATRE language⁴ discloses that the proposed total rate of $1.1569 (a 9-cent increase compared to the current rate) would produce a 23 percent increase in M&O revenue for an additional $102,350,532.

State law requires each bond proposition to open with the words “THIS IS A PROPERTY TAX INCREASE,” because bonds are, in fact, property tax increases. Even if the Interest and Sinking (I&S) property tax rate that pays for bond debt stays the same, the debt must be repaid with more property taxes coming out of taxpayers’pockets over the course of decades. 

Capacity Built for Students Who Never Arrived

The proposals follow the district’s pattern of seeking major new debt while capacity expansions outpaced actual enrollment. In 2014,⁵ taxpayers authorized $1.2 billion in bonds. In 2019,⁶ they authorized another $1.762 billion. Those authorizations funded new campuses and facilities expansions based on demographic projections of continued growth. Enrollment peaked around 118,000 and has since declined to a projected 112,316 for 2026.⁷ 

Among the ten Texas districts with the largest recent enrollment losses,⁸ almost all have closed or are in the process of closing and consolidating campuses. CFISD is one of the only districts that has not closed campuses and is placing a VATRE on the November ballot. District capacity data⁹ show multiple campuses operating well below permanent capacity, with some elementary and middle schools well under 80 percent utilization. The district is nonetheless seeking both an M&O rate increase and billions more in debt to maintain and refresh facilities built for students who never arrived.

The Full Cost of New Debt

The four bond propositions total $1,636,520,000 in principal for infrastructure replacements, technology, athletic stadium improvements, and swimming facilities.¹⁰ Estimated interest approaches $1.6 billion, for a combined obligation near $3.2 billion repaid over decades.¹¹ Existing debt stands at roughly $4.6 billion in remaining principal and interest.¹² Adding the package would place total commitments well above $7.8 billion. 

District materials project a three-cent I&S reduction to $0.37 if the new bonds are approved and managed as forecasted. That reduction assumes new issuance. If taxpayers reject the bond propositions, existing obligations continue to amortize on their current schedule, which would ultimately result in a property tax decrease for taxpayers in time. Even the district has stated older debt is scheduled to decline. Without roughly $1.6 billion in new principal and associated interest, debt-service requirements would be expected to fall further over time, creating the likelihood of an even lower I&S rate than the projected $0.37.

What the Rate Increase Means for Households and Businesses

Proposition A would raise the M&O tax rate from $0.6669 to $0.7869, with a total M&O plus I&S rate of $1.1569. A $400,000 home would see roughly $162 more per year under the net rate.¹³ Higher tax rates raise costs for homeowners and operating costs for businesses that can be passed through in higher rents, costs for goods and services, or reduced investment. If the propositions are approved, these increases will arrive while families already face elevated prices for gas, groceries, utilities, and more. At the same time, Texas Education Agency data for 2023-24 listed CFISD’s then-superintendent as the highest-paid public school superintendent in the state at $536,775, excluding benefits and allowances.¹⁴ Current leadership compensation remains well into the $400,000 range with allowances.

Texas governments at every level have collected record revenues in recent years, greatly contributing to the cost-of-living crisis. Local decisions like the ones CFISD has repeatedly advanced (expanding ahead of actual enrollment, maintaining high administrative compensation, and rate increases and new debt) are a primary driver of the rising tax burden on Texas families. Other districts facing enrollment declines have adjusted capacity, but CFISD is doing just the opposite.  

Taxpayers Must Decide

Cypress-Fairbanks ISD is once again asking northwest Houston taxpayers and families for more of their hard-earned money. Taxpayers will ultimately decide whether to approve an 18 percent increase in the M&O tax rate and more than $3 billion in new debt-service obligations on top of the debt the district already owes. Rejecting the bond propositions would leave existing debt to amortize on its current schedule and could allow the Interest and Sinking rate to fall even further over time. Approving the package would lock in higher property taxes for homeowners and higher operating costs for businesses even as enrollment continues to decline and multiple campuses remain under-utilized. 

How long can a district keep building and taxing for students who are not there before taxpayers ask the obvious question: is this even worth it?

---

Texans for Fiscal Responsibility is an independent educational non-profit organization seeking to illuminate the actions of government, educate and equip citizens to effectively advocate for pro-taxpayer and pro-family reforms, and hold lawmakers accountable for their actions.

Funded by ordinary Texans who want a fair, fiscally sound, and accountable government at all levels, we exist to protect and serve the best interests of taxpayers and families in the Lone Star State. Please consider making a generous donation towards our work today!

Get The Fiscal Note, our free weekly roll-up on all the current events that could impact your wallet. Subscribe today!

---

1. https://election.cfisd.net/ ↩︎
2. https://www.cfisd.net/cfisd-news-details/~board/2026-2027-cfisd-district-news/post/cfisd-board-of-trustees-calls-nov-3-election ↩︎
3. https://www.houstonpublicmedia.org/articles/education/2026/08/11/559213/tax-rate-cy-fair-isd-bond-election-november/ ↩︎
4. https://election.cfisd.net/vatre ↩︎
5. https://www.cfisd.net/bond/previous-bond-projects/bond-2014/project-overview ↩︎
6. https://www.cfisd.net/bond/bond-2019/project-overview ↩︎
7. https://resources.finalsite.net/images/v1782233897/cfisdnet/sphniutdsnfla4umyhfc/AdoptedGeneralOperatingBudgetJune182026Website.pdf ↩︎
8. https://www.kxan.com/wp-content/uploads/sites/40/2026/05/TX36_Enrollment_Report_2026_29daa7.pdf ↩︎
9. https://resources.finalsite.net/images/v1762359130/cfisdnet/rp9cixzbsf0lqcfon9u7/LRPCPresentation110525.pdf ↩︎
10. https://election.cfisd.net/bond ↩︎
11. https://texasscorecard.com/local/cy-fair-isd-bond-proposals-carry-3-2-billion-price-tag-with-interest/ ↩︎
12. https://resources.finalsite.net/images/v1789582832/cfisdnet/hbhlrdzth8cr2ulvfscv/CFISD-VoterInformationDocument-PropositionB.pdf ↩︎
13. https://election.cfisd.net/taximpact ↩︎
14. https://www.texaspolicy.com/who-were-texas-highest-paid-superintendents-in-2023-24/ ↩︎