Conroe ISD Adopts Budget, Lowest Tax Rate Since 1987

**Conroe ISD Adopts Budget with Lowest Tax Rate Since 1987, Grapples with State Funding Shortfalls**

**CONROE, TX – June 19, 2024** – The Conroe ISD Board of Trustees took a significant step on Tuesday, June 18, officially adopting the district’s 2024-2025 budget, which includes a proposed total tax rate of $0.9392 per $100 valuation. This rate marks a historic low for Conroe ISD, representing the lowest tax rate residents have seen since 1987.

The proposed rate is a notable decrease of $0.1058 from the previous year’s $1.0450. Breaking down the figures, the Maintenance & Operations (M&O) rate, which funds day-to-day operations, is set at $0.6892. The Interest & Sinking (I&S) rate, dedicated to covering debt service, stands at $0.2500. This substantial reduction in the tax rate is largely attributed to recent state legislative actions, particularly House Bill 2 from the 88th Legislative Session and House Bill 3 from the 86th Legislative Session, which enacted property tax compression and adjusted the state’s school finance formulas.

While the lower tax rate offers welcome relief to local taxpayers, district officials emphasize that Conroe ISD is simultaneously navigating a challenging financial landscape. The adopted budget, totaling $770.7 million in expenditures across all funds (including $714.8 million for the General Fund, $27.9 million for Debt Service, and $28.0 million for Food Service), must contend with a surge in operational costs. These include inflationary pressures, rising utility expenses, increased insurance premiums, and general supply costs.

A major concern for the district remains the state’s basic allotment for students, which has not seen an increase since 2019. Despite a substantial $30 billion state surplus, the 88th Legislative Session failed to pass a bill that would have utilized these funds to adequately increase public education funding, leaving districts like Conroe ISD in a difficult position.

Superintendent Dr. Curtis Null highlighted this dichotomy, stating, “While we are proud to be returning more local tax dollars to our taxpayers, we are simultaneously facing what amounts to a nearly $700 per student reduction in state aid due to legislative inaction on the basic allotment.” This translates into significant pressure on the district to maintain high-quality educational programs and services without a corresponding increase in per-student funding from the state to offset rising costs.

Chief Financial Officer Darren Rice echoed the superintendent’s remarks, underscoring the district’s commitment to robust financial management amid these budgetary pressures. “Our team continues to find efficiencies and prioritize resources to ensure we are maximizing every dollar for our students and staff, even as external factors create significant headwinds,” Rice noted.

On a positive note for district employees, the adopted budget does include compensation increases. Teachers, librarians, nurses, counselors, and administrators are slated to receive a 3% general pay increase. All other staff members will see a 2% raise. Furthermore, the district’s minimum wage for support staff will be increased to $15.50 per hour, reflecting an effort to recruit and retain essential personnel.

Community members will have an opportunity to provide feedback on the proposed tax rate at a public hearing scheduled for August 2024. The exact date and time for this hearing will be announced on the district’s website, [ConroeISD.net](https://www.conroeisd.net/). The final adoption of the 2024-2025 tax rate is anticipated in September 2024, following the public input process.

For more detailed information on the adopted budget and proposed tax rate, residents are encouraged to visit the Conroe ISD website or attend the upcoming public hearing.