A Voter-Approval Tax Rate Election (VATRE) is a special election that allows school districts in Texas to seek voter approval to increase their Maintenance and Operations (M&O) tax rate above  the state-mandated threshold. The M&O tax rate is part of the overall property tax rate and is used primarily for the day-to-day operations of schools, including salaries, utilities, and supplies.

Under Texas law, if a school district wants to set its M&O tax rate above a certain amount, it must obtain approval from the voters in the form of a VATRE. This process is vital because it ensures that any increase in local property taxes, which directly affects homeowners and businesses, is supported by the community.

In 2025, the Texas Legislature passed significant property tax relief measures aimed at homeowners aged 65 and older. This means eligible individuals can now receive a total school tax exemption of up to $200,000 - combining the $140,000 general exemption and the $60,000 over 65/disabled exemption - if it is approved by voters in November. The existing school district tax freeze for seniors remains, ensuring that school district taxes on your home won't increase after you qualify, unless you make major home improvements.

There will not be an increase in taxes for senior citizens or disabled persons as a result of this proposed proposition. School property taxes for senior citizens and disabled persons are frozen and would not be affected by passage of Prop A as long as individuals have applied for and received the Over 65 or Disabled Person Homestead Exemption with the appraisal district.

NLISD will not be able to access the additional $2.3 million in funding that addresses teacher and staff pay, technology upgrades, athletic, band, and CTE program equipment, transportation and facility upkeep. 

While the Texas Legislature recently approved the first school funding increase since 2019, it does not cover all operational costs.
The additional funding that would be generated by the passing of Prop A would address:
1. An Increase teacher and staff salaries
2. Athletic, Band, and CTE program equipment 
3. Technology upgrades
4. Facilities upkeep
5. Transportation upgrades

If Prop A is approved, there would be no tax rate increase for homeowners in North Lamar ISD.

• Current Total Tax Rate of $0.9169 
  • M&O Rate of $0.6669
  • I&S Rate of $0.25
• Addition of $0.10 to the M&O from VATRE 
  • Decrease of $0.10 to the I&S 
• Total Tax Rate from VATRE: $0.9169
  • M&O Rate of $0.7669
  • I&S Rate of $0.15

Public schools in the state of Texas are funded from three main sources:

• Local school district property taxes
  • Local tax dollars make up the majority of the district’s revenue sources.  Our board of trustees sets the local property tax rate each year while the county appraisal district determines the market value of property within the county or district.

• State funds
  • The amount of state revenue earned each year is determined by the Tier 1 Entitlement calculation and in Tier 2 by the guaranteed yields on the golden and copper penny portions of the tax rate.

•  Federal funds
  • Federal funding for Texas school districts vary from district to district. Funding is based on various federal grant allotments and formulas. Most federal revenues that are received by school districts are accounted for in Special Revenue Fund groups and are not in the District’s General Fund.

Two factors that drive school finance in TX: Enrollment and Local property values
When local tax collections increase, state funds to a school district decrease.

PROPOSITION A $2.3M

Teacher and Staff Pay $1,032,900 per year

Technology Upgrades $105,050 per year

Band, CTE, & Athletic Equipment $150,000 per year

New Buses / School Vehicles $350,000 per year

Facilities Upkeep $662,050 per year