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The Boerne Independent School District is one of five San Antonio-area school districts going out for a Voter-Approval Tax Rate Election, or VATRE, this November.
VATREs give districts access to more funding for daily operations, like salaries and student programs by allowing school districts to raise their Maintenance and Operations (M&O) tax rate by up to 12 cents.
However, Boerne is only asking voters for permission to access three cents, less than most other area districts.
District spokesperson Maggie Dominguez said Boerne is only asking for three more cents on the M&O tax rate because that’s the maximum amount of golden pennies allowed by the state. After that, the additional cents become copper pennies.
“The golden pennies are attractive to us. The copper pennies are absolutely not because, for our area, the way that this works out is that we would get about 36 cents on the dollar for a copper penny,” Dominguez said. “We get the full dollar from the golden pennies, and then the state is going to kick in about 60 cents additional.”
Property values in Boerne are higher than in many parts of San Antonio. The district isn’t currently paying into recapture, often called Robin Hood, but it did for many years until the state legislature increased the threshold for recapture in 2023.
According to the district’s calculations, Boerne would have to give part of the funding collected from copper pennies to the state. But because the guaranteed yield is higher for golden pennies, the state would give Boerne more state funding if voters pass the VATRE.
And, even if Boerne does go back into recapture someday, the district would still be able to keep all of the local property tax collected from the golden pennies because golden pennies are exempt from recapture.
The state calls golden and copper pennies enrichment funding and guarantees a minimum amount of funding per penny. Districts that can’t collect enough funding locally to meet that minimum amount get additional funding from the state. Golden pennies are worth more than copper pennies, with a higher minimum yield. Districts are allowed to access up to eight golden pennies and nine copper pennies. School boards can access the first five golden pennies without voter approval, but the 12 remaining cents require a VATRE.
Dominguez said Boerne trustees voted to lower the Interest & Sinking, or I&S, tax rate by one cent to offset the three-cent increase in the M&O tax rate, making the combined tax rate two cents higher than last year. The I&S tax rate is used to pay off bond debt.
If approved, the district’s combined property tax rate will be $1.0109 per $100 of value. Boerne officials estimate their VATRE would give them access to an additional $4.8 million a year.
Boerne officials plan to use the $4.8 million they expect to receive from the VATRE to give employees raises and maintain student programs.
Dominguez said Boerne has less funding per student than many nearby districts, and the additional revenue will help the district offer competitive salaries.
“Because our funding is so low, we haven't been able to do special ed stipends,” Dominguez said. “We're one of the only districts in this entire region that hasn't been able to afford to do it, and that is built into the VATRE as well.”
“We lost one in five teachers last year to turnover and leaving to other districts,” she added. “And out of that group, like 30% of those were special education teachers we lost to better paying jobs in neighboring districts.”
Less than 20% of Boerne’s students are economically disadvantaged, giving the districts access to less funding per student than other districts with higher poverty rates, which the state has judged need more resources.
VATREs are the only lever local districts have to increase funding for teacher salaries and student programs because most of a district’s funding for daily operations is set by the state through a funding formula. Even when property values rise, local districts don’t get more money to operate schools. They just get less money from the state.
East Central, Judson, La Vernia and Schertz-Cibolo-Universal City ISD are also going out for VATREs. East Central is asking for five cents, Judson is asking for 10, La Vernia is asking for three, and Schertz-Cibolo is asking for the full 12 cents. Many of the districts are lowering their I&S tax rate to help offset the increase in the M&O tax rate.
For a full breakdown of local ballot measures, go to TPR's voter guide.
Early voting for the November 4 election starts Monday, October 20.
