Prosper ISD homeowners will pay the lowest school tax rate in years after the board of trustees voted 7-0 on Monday, Aug. 24, to set the 2026-27 rate at $1.2011 per $100 of assessed value.
The rate is down from $1.67 in 2019, before state law began requiring districts to compress rates as property values climb. Chief Financial Officer Keri Croy presented the proposal at the meeting, according to the district's board recap. The maintenance and operations portion dropped from $0.7141 to $0.7011, which translates to roughly $13 less in M&O taxes for a homeowner whose property value stayed flat.
New growth, not higher rates on existing homes, is driving additional revenue. State law required the district to include language in its tax ordinance noting that total M&O collections will exceed last year's, but that increase comes from new homes and businesses joining the tax roll.
Recapture payments climbing fast
The rate cut comes with a fiscal asterisk.
Prosper ISD paid $1,286,744 in recapture to the state during 2025-26. That figure is projected to hit $2.3 million for the current school year, and Croy has warned it could reach $6.4 million by 2029-30.
"[It's] almost to the point ... where all of our extra revenue goes back to Austin in recapture, even though we are in a deficit year," Croy said at the board's June 16 meeting, when trustees adopted the 2026-27 budget.
The board voted 7-0 to approve an agreement for the purchase of attendance credit and delegated authority to Acting Superintendent Bill McLaughlin to sign future recapture agreements on the district's behalf. Recapture, sometimes called the "Robin Hood" plan, requires districts whose total property value per student exceeds a state threshold to send a portion of local tax revenue back to Austin for redistribution to less property-wealthy districts.
The district is already navigating a projected $42.2 million total budget shortfall for 2026-27, including $25.1 million in the general fund, according to Community Impact. Cost-saving measures include department budget cuts, contract audits, a travel freeze for central office staff and staffing evaluations.
Rock Hill TAFE wins national title
In lighter news from the same meeting, the board recognized Rock Hill High School's TAFE chapter as National Champions for Outstanding Chapter at the Educators Rising National Conference and Competition in June.
Students Katelyn Fults, Addy Mullins, Norah Rubin and Christian Pietersz, sponsored by teacher Holly Sanchez, earned first place for leadership, community service, member engagement and chapter impact through Rock Hill's Ready, Set, Teach program. Director of CTE Julie Anderson and Rock Hill Principal Terry Mouton joined the recognition.
The next regular Prosper ISD board meeting is scheduled for Monday, Sept. 28, at 7 p.m.
