McKinney ISD

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Attendance Credit Election

McKinney ISD Superintendent, Dr. Rick McDaniel, gives a brief overview of the Attendance Credit Election.

Did You Know: McKinney ISD is at risk of losing approximately $2.9 Billion of its tax base on May 1, 2021?

McKinney ISD will hold a special election, known as an Attendance Credit Election, on May 1 seeking voter approval for the district to continue to pay recapture by purchasing attendance credit from the State with local tax revenue.

The district has paid recapture by purchasing attendance credit from the Texas Education Agency (TEA) since 14-15.

The special election is required by the state due to changes by Texas House Bill 3 in the 2019 legislative session. This election is a one-time permanent election.

What is Recapture (AKA Robin Hood Payments)?

Texas law requires school districts that have a high property wealth per student to give a portion of local tax revenue back to the state. Those funds are then shared with school districts showing low property wealth per student. The law, which is commonly referred to as the “Robin Hood” has designated McKinney ISD as a Chapter 49 or property wealthy district based on our property values. Therefore, a portion of McKinney ISD property taxes are subject to recapture by the state.

Can McKinney ISD End Recapture?

No. Area districts such as Plano and Frisco ISD have been paying recapture for more than fifteen years, and Allen ISD has been paying recapture for the past 10 years. McKinney ISD has been paying recapture since 2014–2015.

For MISD to be able to stop paying recapture, the district would need to lower the M&O tax rate by approximately $0.06. The revenue decline would be approximately $9.6 million per year. McKinney ISD would have to eliminate teachers, support positions and programs throughout the district.

What Happens if the Election Fails (AGAINST)?

If the Attendance Credit Election is not approved by McKinney ISD voters, the TEA will begin a “Detachment of Territory” procedure to remove $2.9 Billion worth of property from McKinney ISD’s property values.

Top Ten Taxpayers Taxable Valuation
Encore Wire Limited $124,784,854
Oncor Electric Delivery Company $85,662,577
NREA Retreat DST $66,300,000
Fairways Wilson Creek Apartments LLC $62,661,410
West Eldorado TX Partners LLC $61,300,418
TMK Properties LP $60,078,277
Village at Fairview Ltd. $56,921,587
Orion McKinney LLC $55,450,000
Raytheon Co. $50,383,744
Columbia Medical Center of McKinney $47,960,999
Total $671,503,866

The above chart lists the Top 10 Taxpayers in McKinney ISD. This total represents nearly $0.7 Billion in taxable value, meaning that the TEA would still need to detach an additional $2.2 Billion. Please note that the actual list of detached properties would be determined by the TEA.

As a Taxpayer in McKinney ISD, What Does This Mean to Me if the Election Fails (AGAINST)?

The main impact of McKinney ISD losing $2.9 billion in property tax value to detachment of territory is MISD would need to raise the I&S tax rate by approximately 8 cents in order to continue to service the district’s current debt schedule. This increase would equate to a $283 yearly tax increase per average MISD single-family home ($354,159).

What Happens if the Election is Approved (FOR)?

McKinney ISD has paid its recapture payment since 2014–2015. A vote “for” the election allows McKinney ISD to continue using the same process. Other items to note if the election is approved by voters:

  • It allows MISD to continue to provide the quality and the variety of programs that McKinney ISD students and parents have come to expect.
  • The district will continue to make recapture payments using the most cost-effective method, Purchasing Attendance Credit. Of the school districts in Texas that are required to pay recapture, 100 percent use Purchase Attendance Credit as their method of payment

Several Texas school districts, including McKinney ISD, will be holding special attendance credit elections this year. Many larger property wealthy school districts such as Plano and Frisco ISD held elections when they were first designated as recapture districts.

Need Help?

If you need additional assistance with the content on this page, please contact McKinney ISD team member Ben Albers by phone at 469-302-4215 or by email here .