Last month, Katy school trustees set a tax ratification election, called a TRE, for placement on the November ballot. If approved by voters, the district would make up for lost revenues, and that money would go towards educator salaries. But a state senator warned Thursday that the TRE, if approved, would “wipe out” the property tax relief state legislators intended.

Sen. Paul Bettencourt, R-Houston, represents a district that includes much of Katy ISD. He said in a statement that an approved TRE could mean taxpayers could pay the same property tax rate as they did last year and get no property tax relief.

“Even though the state is buying down the M&O (maintenance and operations) tax rates all over the state, individual school districts may be absorbing that decreased rate,” Bettencourt said. “In a year of record appraisal increases, to have a TRE in November is a really bad deal for taxpayers if it passes. These TREs would take the tax rate right back up to the same rate as last years, with taxpayers incredibly unhappy with the results.”

The district’s overall tax rate dropped from $1.3517 to $1.3048 per $100 property evaluation. This $0.0469, or 3.5%, decrease is reflected in the district’s maintenance and operations rate. The compression comes due to state law, which requires the M&O rate drop when property values increase.

If Katy ISD voters approve the TRE, those $0.0469 pennies will be added, so the total M&O rate will stay the same this year as last year.

Using the newly adopted $1.3048 rate, without the TRE, a property valued at $363,366, with a taxable value of $324,213, would have a tax bill of $4,230.

If voters or ratify the tax rate, the rate would be, as it was last year, $1.3517. Using the previous example, the tax bill would be $4,382, a $152 increase.

Regardless of the TRE’s outcome, Katy-area property owners can expect to pay more because property values have risen, despite the lower tax rate. The district’s student population continues to grow, with an expected enrollment of 100,000 students expected by 2030, Superintendent Ken Gregorski said.

The M&O rate funds educator salaries. Trustees in May gave teachers and hourly workers a 5% raise, with all other personnel receiving a 3% increase. The raise comes as districts competing to hire and retain teachers amidst a nationwide teacher shortage.

Position 6 Trustee Rebecca Fox said at the August meeting that trustees have been talking about the TRE for some time. She said the TRE, if approved, would go for people.

“We need to be able to pay them more,” Fox said. “This money will go for people. It won’t be a blank check to do whatever we want. I just want people to know that should we choose to call for an election, this money is for people. Other school districts have been doing it. It’s been on our radar for a while. My view is to ask the people to tell us what they want. Here is your choice in the ballot box. What do you want us to do?”

Bettencourt said an approved TRE would provide the district with an additional $23 million plus another $1.9 million from the state.

“I’m hitting the alarm button on that because the Texas taxpayer should be making that decision fully informed,” Bettencourt said. “This was not the spirit, nor the intent, or the expectation of passing property tax relief as this example shows nearly $100 or more than $200 of higher tax bills.”

Bettencourt said taxpayers must stay vigilant and be aware of any taxing unit that may be trying to short-circuit their property tax relief.

“The bottom line is this: if there are zero tax rate cuts in any district, there is no tax relief for the hard-pressed Texas taxpayers there,” Bettencourt said. “Because there is no central database collection of these elections, this could be happening all over the state.”

Bettencourt said citizens can check on property tax bills and the property tax rate setting process on the Texas Property Tax Directory website, the abbreviated URL for which is bit.ly/3D1wofE.

Numerous Southeast Texas school districts, including Alvin, Fort Bend, and Friendswood, have called for such elections.

The district has established a webpage with more information about the election, the abbreviated URL for which is bit.ly/3QWCkuw.