At its regular meeting on September 22, the Denton Independent School District (DISD) Board of Trustees approved a modest reduction in the district’s total property tax rate, bringing it down to $1.1528 per $100 of taxable value for the 2026‑27 school year. The change shaves just over five cents off the previous year’s rate and translates into roughly $345 in savings for the owner of a median‑valued home in the district.
Why the rate dropped
Chief Financial Officer Jennifer Stewart explained that the FY 2026‑27 budget was adopted in June based on projected property values. Certified values received in July rose sharply, climbing from $31.2 billion to $35.2 billion – an increase of nearly $4 billion driven largely by new commercial and personal property. The Texas Education Agency (TEA) used those certified values to assign DISD its maintenance and operations (M&O) tax rate.
Three primary factors accounted for the lower rate:
- State‑driven M&O compression: Under Texas law, the state automatically reduces a district’s basic M&O rate as local property values increase. This compression explains most of the five‑cent reduction.
- Voter‑approved tax rate election (VATRE) pennies: In November 2025, DISD voters approved Proposition A, adding five cents to the M&O rate to generate about $26 million annually. Those pennies were carried forward into FY 2026‑27.
- Flat interest and sinking (I&S) rate: The district’s debt service rate remains steady at $0.4800 per $100 of taxable value, reflecting continued repayment of voter‑approved bonds.
Impact on homeowners
DISD documents show the median home value fell from $264,592 in FY 2025‑26 to $247,061 in FY 2026‑27. Consequently, the median household’s property tax bill drops from $3,193.36 to $2,848.12, a net reduction of $345. While the overall tax rate has declined by nearly 39 cents since FY 2018‑19, the district’s $380 million general‑fund budget remains intact.
Budget and staffing
The board’s budget, adopted in June, includes a 4 % compensation increase for teachers and a 2 % raise for all other employees. Despite the lower tax rate, the district will still fund these raises, underscoring the board’s commitment to competitive pay without imposing additional tax burdens on residents.
Board perspective
DISD Board President Barbara Burns emphasized the trustees’ stewardship: “Our job as trustees is to be careful with what this community entrusts to us and unwavering about what our students need. This rate reflects both the compression the state applies as local values rise and the work our team has done to build a budget that pays our teachers competitively without asking more of our taxpayers.”
What this means for Denton families
For families focused on budgeting and preserving household finances, the tax reduction offers immediate relief. At the same time, the district’s continued investment in teacher compensation signals a stable learning environment for students. Local residents can expect the same level of educational services, now funded more efficiently thanks to rising property values and state‑mandated rate adjustments.
Overall, the Denton ISD Board’s decision aligns fiscal responsibility with the district’s educational mission, delivering tangible savings to homeowners while maintaining support for staff and students.
Original reporting: Community Impact — Denton — read the source article.
