Sweet Little Lies: How ISDs Undermine Texas’ Tax Impact Disclosure Statement and What Can Be Done to Stop It

State law requires school districts to include a tax impact disclosure statement on every bond proposition, stating: ‘THIS IS A PROPERTY TAX INCREASE’. However, this good government measure is being undermined by ISDs in small but noticeable ways.

Key points:

• In 2019, the Texas Legislature passed HB 3 which, in part, required independent school districts to include a simple statement on every bond proposition, stating: “THIS IS A PROPERTY TAX INCREASE.”
• Policymakers considered this transparency measure necessary after discovering some voters were not making the connection between new debt and new taxes.
• To continue borrowing uninterrupted, many ISDs have employed creative schemes to work around this requirement.
• Policymakers can strengthen the disclosure statement by accentuating the font; supplementing it with other details; extending its requirements to other political subdivision types; and incorporating a cost element.