Navarro Independent School District

Following a public hearing presenting the proposed 2025-2026 tax rate and budget, the Navarro ISD Board of Trustees approved in the August 27 Special Meeting a $35,008,825 budget and $1.2228 tax rate, continuing a commitment to fiscal responsibility and investment in student success. The new tax rate reflects a careful balance between managing the district's financial needs and providing relief to taxpayers.

The approved tax rate for the 2025-26 school year is $1.2228 per $100 of taxable valuation. This is an increase from the 2024-25 rate of $1.1827. It's important for stakeholders to understand how this rate is divided into two distinct "buckets" that serve different purposes:

• Maintenance and Operations (M&O): This portion of the tax rate, which will remain unchanged at $0.7228, funds the day-to-day operations of the district. This includes essential expenses such as salaries, utilities, fuel, insurance, supplies and equipment.
• Interest and Sinking (I&S): This portion of the tax rate covers the payment of principal and interest on the district's debts, such as school bonds. This year, the I&S portion will increase by $0.0401 to $0.50.

The increase in the I&S tax rate is directly tied to the district's commitment to fulfilling the obligations of a $120 million bond election, which was approved by voters in May 2024. The increase will account for the payment of principal and interest on the issuance of $65 million in bonds issued in August 2025. The remaining $35 million of 2024 bonds will be issued in the coming fiscal year. This funding is crucial for addressing growth, facility needs, and improvements as approved by the community and outlined in the Long Range Facilities Master Plan.

The budget reflects a strong commitment to supporting our educators and staff, and it is important for stakeholders to understand that the increased new tax rate is not to cover the salary increases for district staff approved in July. These salary adjustments, which account for approximately 77% of the district's general fund, are a key component of the 2025-26 budget, which totals $35 million in the general fund, $2 million in child nutrition services, and $10.7 million in debt service on previously issued bonds.

"We are incredibly proud of the work our district, school board, and our Chief Financial Officer, Paul Neuhoff, has done to create a fiscally sound and transparent budget," said Superintendent Dr. Mandy Epley. "This budget not only supports our staff with well-deserved raises but also embraces the priorities of our Collaborative Vision to improve student academic outcomes and expand opportunities for programs of study, extra-curricular programs, and advanced academics in College, Career, and Military readiness."

Board President Melissa Sartain echoed this sentiment, "The Board is dedicated to upholding the highest standards of financial transparency. We believe this budget reflects our commitment to our students and staff while being responsible and conservative stewards of taxpayer dollars. The great work done by our administration and Mr. Neuhoff to maintain a balanced budget is a testament to the district’s dedication to our community, making Navarro ISD a desirable district to live in and work.”

Furthermore, Navarro ISD homeowners are projected to realize an estimated savings of $562 per year based on average home values, due to the higher homestead exemptions that are pending statewide voter approval. While the new tax rate does have a four-cent increase, this significant savings for homeowners will more than offset the increase.

The district's focus remains on providing a high-quality education for all students while maintaining financial stability and transparency. The approval of the 2025-26 budget and tax rate is a crucial step in fulfilling this mission and ensuring a stable future for our growing community.