San Antonio – On Tuesday evening the Alamo Colleges District Board of Trustees voted unanimously to move forward with a property‑tax increase of $0.0175 per $100 of assessed value. The rate is slightly higher than the $0.0125 increase projected in June and is intended to close a projected $27 million budget shortfall for the 2026‑27 fiscal year.
Tax increase details and impact on homeowners
The proposed rate would raise the total district tax levy from $0.149 to $0.167 per $100 valuation. For a homeowner with the median San Antonio home value of $270,000, the increase translates to an additional $37 in annual taxes. A home valued at $320,000 would see roughly $48 more each year. The district notes that it provides $16.6 million in homestead exemptions, which help offset the cost for qualifying Bexar County residents, including seniors and persons with disabilities.
Why the district needs more revenue
Alamo Colleges relies on property taxes for nearly half of its operating revenue; tuition, fees and state appropriations make up the remainder. Enrollment growth has outpaced revenue growth dramatically. Earlier estimates assumed a 7 percent year‑over‑year increase, projecting 96,000 students by fall. Updated figures now show enrollment will reach at least 103,000 this academic year – a 15 percent rise that pushes the district past the 100,000‑student milestone a year earlier than expected.
State funding has also fallen short. Although the district originally anticipated a $106 million allocation under the new outcomes‑based formula of House Bill 8, the figure was reduced to $100 million and then prorated to $88 million. Overall, the district expects to receive $3.9 million less in state aid for fiscal year 2027 than it did in 2026, despite improved performance metrics.
Budget adjustments and cost‑saving measures
District officials say they can cut $8‑10 million in expenses without harming core support services such as AlamoPROMISE, AlamoBOOKS and academic advising. However, those cuts combined with higher enrollment will increase class sizes and fill rates, a point highlighted by Chancellor Mike Flores during the board meeting.
In addition to covering the shortfall, the proposed tax rate is designed to build a reserve of more than $20 million to sustain future growth. The board must hold a public hearing on September 15 and then vote again at a special meeting before the September 30 deadline to adopt the rate. Because the increase does not exceed the threshold requiring voter approval, the board can implement it after the hearing.
Community response and next steps
Alamo Colleges officials emphasized the importance of the tax increase for maintaining facilities, supporting student‑success initiatives and ensuring the district can continue to serve a rapidly expanding student body. The upcoming town‑hall meeting will give Bexar County residents an opportunity to voice concerns or support before the final board vote.
The district’s reliance on property taxes underscores the broader fiscal challenges facing Texas community colleges as enrollment surges and state funding formulas evolve.
Original reporting: San Antonio Report — read the source article.
