The Midway ISD Board of Trustees approved the budget for the 2024-25 school year during their regular June meeting.
The $90.3 million budget is funded by a proposed tax rate for the 2024-25 fiscal year of $0.9369 per $100 of property value – slightly lower than the current rate. Of that rate, $0.6969 is allocated for Maintenance and Operations (M&O) and $0.24 for Interest and Sinking (I&S) or debt service.
The budget includes a proposed deficit of $2.4 million covered by fund balance while ensuring salary adjustments recommended by the Texas Association of School Boards (TASB) and an increase in the district’s health insurance contribution for staff.
“Our deficit is due to the state's inaction to increase per pupil funding since 2019, but we are willing to adopt a deficit to maintain quality programs and maintain a competitive compensation plan,” Superintendent Dr. Chris Allen said. “I am proud of Midway’s history of financial stewardship and our ability to continue providing the high level of education and opportunity for students and staff that our community expects.”
School districts have two types of tax rates: M&O, which includes state funding and pays salaries, contract services and other things such as utilities, classroom supplies, and professional development; and I&S or debt service, which has to pay for bond payments.
The proposed M&O rate is designed to maximize state and local revenue and the I&S rate will adequately fund bond debt obligations and enable early payment of around $2.3 million of the district’s outstanding debt, enhancing the district's long-term financial stability.
Midway ISD’s current total property tax rate is $0.9392 per $100 property valuation – 69.92 cents of that is for maintenance and operations and 24 cents for debt service. The district’s tax rate will be approved later this year.
Midway ISD earned a Superior rating in the 2023 Financial Integrity Rating System of Texas—the highest rating possible—and has maintained this rating for the past eight years.
For more information on Midway ISD’s finances, tax rate, and historical financial stewardship, visit the Financial Transparency Page.
