McKinney, Texas – At their August meeting on Tuesday night, the McKinney ISD Board of Trustees approved a 6.3 cent property tax rate decrease for 2022–2023. This tax rate decrease follows last year’s drop of 9.8 cents for a combined tax rate decrease of 16.1 cents over the course of 2 years and 35.7 cents over the last 7 years.

The drop in the 2022–2023 tax rate is the result of MISD’s use of federal ESSER III grant funding that was first made available and used by MISD in 2021–2022. ESSER III funds will remain available through the 2023–2024 school year, and they have allowed the district to forego access to the Voter Approved Tax Rate Election (VATRE) that passed overwhelmingly in May 2021 and provide a more significant overall tax rate decrease than that which the VATRE would have resulted in.

For 2022–2023 the MISD Maintenance & Operations (M&O) tax rate will drop from the previous $1.0067 per $100 of assessed property value to $0.9429 — a decrease of 6.3 cents. The Interest & Sinking (I&S) tax rate will remain at 37 cents.

The new MISD combined tax rate for 2022–2023 is $1.3129 per $100 of assessed property value.

MISD Deputy Superintendent Jason Bird said, “While HB3 eliminates any district M&O revenue gain from rising property values via mandatory M&O tax rate reductions, state aid reductions or increase in recapture payments, MISD believes that using the ESSER III funds to forego accessing the VATRE of May 2021 continues to demonstrate our fiscal prudence and commitment to our taxpayers.”

ESSER funds were introduced through three pieces of legislation and are administered by the Texas Education Agency as separate grant programs. ESSER I was authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Those grants were intended to help schools respond to COVID-19. ESSER II and III were intended to cover the costs of operating schools with new safety protocols and to support districts as they address learning loss due to the COVID pandemic. ESSER I and ESSER II totaled $6.8 billion at the state level, and ESSER III totaled $11.2 billion in relief funds to the state. ESSER I and ESSER II funds were fully supplanted by the State, meaning none of those funds were received by MISD.

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