Alamo Colleges District is considering a tax rate increase for the first time in over a decade to balance its budget. The district faces a $28 million budget deficit due to a decline in property values and new tax exemptions.
Tax Rate Increase
The proposed tax rate increase would raise the maintenance and operations portion of the tax rate by $0.0125, from $0.108 to $0.120 for fiscal year 2027. This increase would result in an additional $2.82 per month or $33.84 per year for homeowners with a median homestead value of $271,000.
The district’s budget for fiscal year 2027 includes a $9.5 million talent strategy investment, which calls for a 2% market compensation adjustment for all employees, with a minimum increase of $2,000. The budget also includes funding for student-focused programs such as AlamoADVICE, AlamoBOOKS+, and AlamoPROMISE, which have driven results for a growing student population.
Enrollment and Revenue
Enrollment at Alamo Colleges District has increased at more than three times the pace of revenue, with recent changes in tax exemptions and stagnant home sales and property values affecting the district’s revenue. The district’s tax rate had remained unchanged since 2013, but the decline in property values has impacted the district’s revenue.
Alamo Colleges District consists of five local colleges and five education and training centers, with enrollment reaching 89,000 in the 2025-2026 academic year. The district expects to reach 100,000 students by 2028.
Original reporting: San Antonio Report — read the source article.
