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Why does 'this is a property tax increase' appear next to school bonds on the ballot?

The KHOU 11 Verify Team found out why school bonds appearing on the ballot are required to have a disclaimer about property tax increases.

HOUSTON — The sample ballot next to Houston Independent School District's massive school bond includes language describing the item as a "property tax increase." HISD maintains that property taxes will not be raised to pay back the bond at this time, but that disclaimer appears on the ballot, causing confusion.

THE SOURCES

Texas Attorney General's Office
Texas Association of School Boards
Houston Independent School District
Texas Election Code
Texas House Bill 3 (2019)
Texas Education Agency

WHAT WE FOUND 

Texas law requires school bond measures appearing on voter ballots to include the language "This is a property tax increase." The language appears next to the Houston ISD (HISD) or Waller ISD (WISD) bond measures on the Harris County November ballot. According to HISD, the district does not anticipate raising property taxes to repay the state-record $4.4 billion bond if passed by voters. 

RELATED: Houston ISD's $4.4 billion bond proposal: What you need to know about before casting your vote

The disclaimer at the end of the school bond measure comes from a requirement inside the 2019 school finance reform bill. The legal language does not have to appear next to the ad valorem taxes, which are usually proposed property tax increases. 

The Texas Attorney General's Office reaffirmed the language that must be included next to school bonds, as outlined in the Texas Education Code, in a letter addressed to all bond counsel handling school bond issues. 

The Texas Attorney General's letter also said school districts must split up bond propositions. According to the Texas Association of School Boards, there will be a single proposition for bonds related to construction, acquisition, purchase of new school buses, purchase of sites for new schools and equipment for school buildings. 

There are separate propositions for the construction, acquisition, or equipment of specific facilities like large stadiums, performing arts facilities, and natatoriums. Technology and school security are also grouped into separate propositions.

This is why HISD's propositions for school and technology upgrades appear as separate measures on the November ballot. 

The education finance reform law signed by Governor Greg Abbott in 2019 was touted by the Texas Education Agency as "one of the most transformative Texas education bills in recent history." Dubbed House Bill 3 at the time, it also raised the amount of money the state issued to schools per student, called the "basic allotment." Since that time, school districts across Texas have appealed to the state to increase the basic allotment, to cover expenses that need to be adjusted for inflation. 

The KHOU 11 Verify Team found many school districts are operating with deficit budgets for the 2024-2025 school year. Districts are turning to school bond measures and proposing higher property tax rates to get funds the state has not provided to Texas public schools since 2019.    

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