The Frisco ISD Board of Trustees is considering raising the tax rate by 2.94 cents for the upcoming fiscal year, pending voter approval.
According to Frisco ISD, trustees initially discussed the tax during a workshop on Aug. 5, 2024, though no action was taken. Moving forward, the board will vote on the tax and bond at a meeting on Aug. 19. If approved by the board, voters will have the final decision during the upcoming November election.
Upon approval, residents would see an average of $158 increase to homeowners’ annual bill based on the current home valuation of $727,914 and taxable value of $539,763. The current adopted tax rate is $1.0275 per $100 valuation, 18 cents lower than the 2022 tax rate.
The tax increase would generate $19.5 million in property tax revenue — $8 million of which would go to the state through mandatory recapture. The additional funds would also enable Frisco ISD to sustain competitive salaries and high-quality student programs.
Public school funding in Texas primarily comes from three sources: local school district property taxes, state funds and federal funds, with the majority coming from local property taxes and state funding.
Under Texas school finance law, the state determines the total amount of state and local funding allocated to school districts. These laws also restrict the ability of school districts to raise revenue locally.
Frisco ISD's combined tax rate is composed of two separate rates, each supporting a different fund with distinct functions and governed by specific spending rules. These rates are the maintenance and operations (M&O) rate and the interest and sinking (I&S) rate. The school board adopts both tax rates annually.
M&O taxes finance the general operations of the district and are governed by the state's funding formula for public education. This portion of the budget covers expenses such as staff salaries, utilities, supplies, facility maintenance and other daily operational costs.
I&S taxes cover the expenses related to issuing school building bonds. These bonds are used for constructing new facilities, renovating existing ones and making significant infrastructure upgrades. Frisco ISD must obtain voter approval to issue these bonds. While bond elections do not increase the I&S tax rate directly, the costs associated with the bonds can affect the I&S tax rate.
Note: A previous version of this story included incorrect figures. It has since been updated to reflect the correct amount.
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