McKinney ISD

 

Attendance Credit Election

At its December 17 meeting, the McKinney ISD Board of Trustees authorized a special “attendance credit election” to be held on May 2 that calls upon the community to vote for or against the method by which it makes mandatory payments to the state.

In doing so, MISD joins six other Texas school districts, including Allen ISD and Little Elm ISD, in calling for a special election.

What is the Attendance Credit Election?

The Attendance Credit Election is a state required, one-time election that asks voters to enable McKinney ISD to continue to make mandatory recapture payments to the state in the same way it has been making them since the 2014–15 school year.

Recapture

In 1993, the State of Texas enacted what has become know as the Robin Hood law. This law “recaptures” tax dollars from property-wealthy districts like MISD and sends them to lower property wealth districts across Texas. Because of this, McKinney ISD makes yearly payments to the state. This payment is called a recapture payment.

Can MISD End Recapture?

MISD is not able to stop paying recapture. In order for MISD to be able to stop recapture, the district would need to lower the Maintenance and Operations (M&O) tax rate by approximately $0.060.

The resulting annual decline in revenue would reach $8.1 million per year over the next two years. This loss in revenue would require eliminating teacher and support positions throughout the district and would leave many of the district’s popular programs at risk of losing funding.

MISD Recapture Payment History

Since 2014–15, McKinney ISD has made all of the necessary recapture payments using a method called “Purchasing Attendance Credits.” MISD prefers this method of recapture payment because it is the most cost effective.

Of the school districts in Texas that are required to pay recapture,100%use Purchase Attendance Credits as their method of payment. school house

What happens if the measure fails on May 2?

If the measure does not pass, MISD will be subject to what is called a “Detachment of Territory” totaling $2.3 billion. This means that the state will detach approximately 13.5 percent of MISD’s total property value, sending those tax dollars to other school districts in Texas.

The detachment of property by the state would reduce the total of MISD property values from $17 billion to approximately $14.7 billion.

Detachment Impact

The main impact of McKinney ISD losing $2.3 billion in property tax value as a result of detachment of territory is that MISD would need to raise the Interest and Sinking (I&S) tax rate by approximately $0.066 in order to continue to service the district’s current debt schedule. That would equate to a $232 yearly tax increase for the average MISD single family home ($351,462).

Top 10 Taxpayers

To provide context for the further financial impact resulting from detachment of territory, here are the McKinney properties with the 10 highest taxable valuations:

Top 10 Taxpayers Taxable Valuation
Encore Wire Limited $115,120,286
Encore Electric Delivery Company $82,165,080
West Eldorado TX Partners LLC $62,095,000
Fairways Wilson Creek Apartments LLC $59,928,438
AREG Grassmere TX Partners LLC $56,350,000
Orion McKinney LLC $54,360,000
Village at Fairview Ltd. $54,100,007
Columbia Medical Center of McKinney LP $49,309,696
TMK Properties LP $49,178,231
Raytheon Ti Systems Inc. $46,021,571
Total $628,628,309

The combined taxable value of those 10 properties would equal only 27 percent ($628,628,309) of the total amount of taxable value that the state would detach from McKinney. If the state detached all ten of those properties, it would still need to detach an additional $1,671,371,691 in taxable property valuation to account for MISD’s recapture obligation.

What happens if the measure passes on May 2?

If the measure passes, MISD will continue to make the required recapture payments using the same method of payment it has used since 2014–15.

School Year Recapture Amount Payment Method
2014-15 $347,762 Purchase Attendance Credits
2015-16 $1,091,597 Purchase Attendance Credits
2016-17 $2,137,292 Purchase Attendance Credits
2017-18 $3,603,342 Purchase Attendance Credits
2018-19 $5,219,857 Purchase Attendance Credits
2019-20 $1,306,248 Purchase Attendance Credits

In addition, if the measure passes, the total tax rate will not change, and MISD will be able to continue to provide the quality of education and resources currently delivered by our teachers in modern, well-maintained facilities.

When can I vote?

Early voting begins Monday, April 20, 2020, and election day is Saturday, May 2, 2020.

The ballot shall be printed to permit voting for or against the proposition: “Authorizing the Board of Trustees of McKinney Independent School District to Purchase Attendance Credit from the State using local tax revenue.”

A vote “for” the measure will authorize the McKinney ISD Board of Trustees to purchase attendance credits from the state using local tax revenue as it has done since 2014–2015.

A vote “against” will deny authorization for the board to purchase attendance credits and result in the state detaching property from McKinney ISD and annexing it to another district.

Poling Locations
Collin County Elections Office
2010 Redbud Blvd. Ste 102, McKinney, 75069
Evans Middle School
6998 Eldorado Pkwy, McKinney, 75070
McKinney Fire Station #5
6600 Virginia Parkway, McKinney, 75070
Slaughter Elementary School
2706 Wolford Street, McKinney, 75071
Webb Elementary School
810 E. Louisiana Street, McKinney, 75069

Where can I get more information?

communications@mckinneyisd.net

Additional Election Materials

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 .