Lewisville Independent School District recently adopted its tax rate for the 2026-2027 budget, and it is the lowest since before the turn of the century.
The district’s Board of Trustees unanimously approved the adoption of a tax rate of $1.0778 per $100 of taxable value for the 2026-2027 budget.
According to a press release from Lewisville ISD Monday, it is the district’s lowest tax rate since 1999.
The press release also noted the district is facing a $7.3 million deficit for fiscal year 2026-2027, which is largely due to Lewisville ISD’s recently approved raises and increased benefits packages for teachers and staff.
According to Lewisville ISD board member Jenny Proznik, the tax rate decrease isn’t necessarily the doing of the board of trustees.
The Texas Education Agency calculates the exact Maintenance and Operations rate a district must adopt based on formulas created by the Texas Legislature back in 2021. The Interest and Sinking rate is set based on the bonds approved by voters and property evaluations provided by local county appraisal districts.
According to the district, the M&O rate will decrease by $0.04 from last year as a result of expiring disaster pennies. Due to a storm disaster declared in Denton County in May 2024, LISD adopted a tax rate increase of $0.04 as a result of the adoption of four disaster pennies that will expired at the end of the previous fiscal year.
The I&S rate will remain the same from the previous year, providing revenue to meet the district’s existing debt requirements.
“We don’t raise [the tax rate], we don’t lower it, we simply adopt the number the state gives us,” she said. “This board has no authority, whatsoever, when it comes to your local tax rate – that lies with your state legislature.”
The district’s budget process began earlier in the year. During a presentation in February, Lewisville ISD revealed it could lose nearly $18 million in state funding due to projected declines in attendance.
Despite the disparity and overall budget uncertainty, Lewisville ISD recently earned an “A” rating by the Financial Integrity Rating System of Texas.
Lewisville ISD scored a perfect 100, the best out of the districts in southern Denton County.
“The state funding formula prevents property value increases from generating additional operating revenue for local schools. When local appraisal values rise, the state formula requires excess property tax revenue to be returned back to the state,” said Lewisville ISD in a press release. “As a district, LISD remains committed to partnering with state elected officials to share the real-world impact of school finance and funding formulas and collaborating to advance solutions that directly benefit LISD students and neighborhood schools.”
For more information on Lewisville ISD’s financial situation, visit the district’s financial dashboard.
