Tax cut erosion is a major concern around the state. Since 2019, the Texas Legislature has committed substantial resources toward reducing property tax bills through twin strategies: compressing school district maintenance and operations (M&O) tax rates1 and increasing the residence homestead exemption. However, the Legislature’s tax relief efforts have largely been frustrated by the excesses of local government, which commonly take the form of aggressive rate hikes, frequent voter-approval tax rate elections (VATREs), large and costly bond propositions, and the abuse of certificates of obligation (COs).
Local Government
Austin ISD’s Budget Narrative Contradicted by Administrative Excess
By its own account, “Austin ISD is navigating a difficult budget season,” with district officials recently approving a 2026-27 budget containing “nearly $186 million in spending reductions.” What led to this unfortunate occasion was almost entirely out of the district’s control, according to the sitting superintendent. Last month, he publicly stated: “Over the past seven years, Austin ISD has...
July 15, 2026