Denton Independent School District officials on Oct. 21 presented information about a pending tax ratification election (Prop A) that would ask voters to approve five additional enrichment pennies (0.05 in the tier-2 portion of the maintenance and operations tax rate).

Dr. Thompson, identified in the meeting as the district’s deputy superintendent, explained the district’s finances and the difference between the interest-and-sinking (I&S) bucket (debt service) and the maintenance and operations (M&O) bucket (day-to-day operations). He said the district is facing an ongoing budget shortfall driven by flat foundational state funding (the basic allotment), rising costs, the loss of certain federal reimbursements and state-mandated programs that were only partially funded. The district told the group it has reduced positions through attrition and layoffs over the past two fiscal years (staff said roughly 249 positions reduced, saving about $13 million) but still projects a roughly $15 million deficit for the coming year.

If Prop A passes, staff projected the five-penny increase would yield approximately $27 million in additional revenue to the M&O bucket, leaving the district with roughly an $11 million surplus for the current year after addressing mandated increases (staff distinguished that much of the recent state funding was pre-committed to raises and other items). District financial presenters said that $11 million could be used to restore some positions and services, increase teacher pay, and begin to rebuild the reserve / fund balance, but that the district would still need to prioritize recoveries because the long-term gap created by years of relative underfunding is larger than this single measure.

Officials provided comparative context: Denton ISD’s tax rate ranks near the bottom regionally and many peer districts have used tier-2 pennies earlier to generate additional local revenue. Staff said the district had discussed alternatives with a community advisory group (the “1925 advisory committee”) and chose a conservative ask of five pennies rather than pursuing a larger rate increase. Presenters emphasized the distinction between enrollment and attendance funding in Texas: state entitlements are based on average daily attendance rather than total enrollment, which affects the district’s revenue base.

Board and council members asked clarifying questions about starting teacher pay, number of classroom teachers (staff said roughly 2,500 teachers and nearly 5,000 total employees), how voucher programs and school choice might affect enrollment and funding, and what additional cuts would be required if Prop A failed. District staff and the district’s Chief Financial Officer (present in the discussion) said that without Prop A the district would have to make further reductions — staff projected an additional loss of about 250 positions or other measures including possible campus consolidations — to balance the budget.

Speakers noted assertions that even if the district raises the tax rate, some homeowners could still see a net decrease in tax bills for 2025 because of a concurrent increase in the homestead exemption; presenters provided a link to the Denton Central Appraisal District (DCAD) to let homeowners calculate individual impacts and said staff is providing informational materials but not advocating for a position in the election.

District officials urged voters to review the district’s Prop A website and FAQ materials; they also outlined the uses for additional revenue as prioritizing teacher and staff compensation, safety and security, and restoring instructional supports and enrichment programs that were reduced across recent budget cycles.