Update from Rockwall ISD Board of Trustees meeting of Monday, August 4

Rockwall, TX (August 5, 2025) –

Recognitions
The Board of Trustees recognized the 26 School Resource Officers (SROs) who serve our campuses through partnerships with the Rockwall Police Department, Heath Department of Public Safety, Rockwall County Sheriff’s Office, and Fate Department of Public Safety.

These officers play a vital role in keeping our schools safe—not just through law enforcement, but by building positive relationships with students, serving as mentors, and providing daily support to staff. Their presence helps create a secure, welcoming environment where learning can thrive.

We are grateful for their dedication and proud to recognize their ongoing commitment to our students, staff, and community.

Public Hearing to Discuss Financial Efficiency Audit
A public hearing was held in accordance with Texas Education Code, Section 11.184, which requires the Board of Trustees of a school district to conduct an efficiency audit before seeking voter approval to adopt a tax rate for the maintenance and operations (M&O) of the district. An efficiency audit was conducted as required by state law in preparation for Rockwall ISD’s upcoming Voter-Approval Tax Rate Election (VATRE) in November 2025. The audit reviewed the District’s fiscal management, staffing, spending, and academic performance, and compared Rockwall ISD to peer districts and state averages.

Key findings from the audit include:

• Rockwall ISD receives less revenue per student than both peer districts and the state average.
• The District spends 54.8% of its operating budget on instruction, closely aligned with peer and state averages.
• Administrative spending is lower than both peer and state averages.
• Academically, Rockwall ISD earned a B rating (88 out of 100) from the Texas Education Agency—above the peer district average score of 84.

The audit was conducted by an independent firm using 2023–2024 fiscal year data and is intended to provide transparency and context ahead of the VATRE. See the efficiency audit here.

Discussion of Voter Approval Tax Ratification Election, Tax Rate Implications, and Priorities Including Providing Competitive Compensation for Teachers and Staff, Staffing for Student Growth, and Funding Safety Initiatives
The Board of Trustees reviewed updates related to the 2025–2026 budget, teacher compensation, state funding, and tax rate adjustments. District leadership also presented the impact of recent legislation and long-term financial challenges. The following summary outlines the key topics discussed (presentation attached to email):

State Funding and Ongoing Gaps

• The Board heard a presentation from District leadership regarding state funding through House Bill 2 and the gaps that remain.
• At the center of school funding is the basic allotment—the amount of money the state provides per student. This amount has not increased since 2019, despite a nearly 20% rise in operational costs like supplies, utilities, and staffing.
• According to the Legislative Budget Board, when adjusted for inflation, Texas public schools now receive $590 less per student than they did a decade ago.
• While the most recent legislative session included limited funding increases, those funds came with state restrictions, reduced local control, and costly mandates that remain unfunded.

As a result, Rockwall ISD continues to face significant financial gaps in three critical areas:

• Competitive teacher pay
• Required school safety measures
• Special education services

Examples of state mandate shortfalls include:

• House Bill 3 requires a commissioned peace officer on every campus, but the state’s increase in safety funding still leaves Rockwall ISD responsible for approximately $2.5 million in local costs to meet the requirement.
• The State of Texas reports a $1.8 billion annual gap in special education funding. Rockwall ISD’s portion of that gap is an estimated $7 million per year.

To address these shortfalls, the district is evaluating a Voter-Approved Tax Ratification Election (VATRE). If approved, the VATRE would provide access to additional local and state funds. Even with this potential increase, Rockwall ISD would continue to have the lowest tax rate among peer and neighboring districts.

Teacher Compensation Overview

• In May, the Board approved a 3% raise for all teachers and staff beginning in the 2025–2026 school year.
• House Bill 2 provides additional compensation for eligible classroom teachers based on years of experience and district size:
  $0 for those with one to two years, $2,500 for three to four years, and $5,000 for five or more years of experience. However certain teachers were excluded and will receive no increase from the state approved House Bill 2, and many positions — such as counselors, librarians, and nurses—are not included.
• While all Texas school districts benefited from the state-funded teacher compensation provided through House Bill 2, Rockwall ISD teachers continue to earn less than those in neighboring districts that were awarded the same state funding and already supplement salaries with additional local dollars through a Voter Approved Tax Ratification Election.

Rockwall ISD Refinances for Local Tax Rate Decrease

• The state did not provide M&O tax rate compression this year due to limited value growth after adjusting for the increased homestead exemption.
• To address this, the Board authorized the refinancing of existing bond debt in June 2025.
  •  This refinancing results in an 8-cent reduction to the Interest & Sinking (I&S) tax rate.
  •  The district’s bond interest rates were lowered while the term was not extended in the process with no new debt issued.

Voter Approved Tax Ratification Election Consideration for November

• The Board is evaluating the potential call for a Voter-Approved Tax Ratification Election (VATRE) for the November 2025 ballot.
• If approved by voters, the VATRE is projected to generate approximately $16.5 million annually, designated for:
  • 64% – Teacher and staff compensation
  • 24% – Special education and student needs
  • 12% – Campus safety
• The proposal includes one proposition and does not include any bond measures.
• If the VATRE is called and passed by voters, the net tax rate change would be:
  • +12¢ from Voter Approved Tax Ratification Election
  • –8¢ from Rockwall ISD local bond refinancing tax rate decrease
  • Net increase: +4¢
• For an average homeowner with a taxable value of $400,000 this represents an estimated $160 annual increase, or approximately $13 per month.

Budget Outlook

• The projected 2025–2026 budget deficit is $6.4 million, even after revenue adjustments and cost reduction measures.
• Contributing factors include:
  • The opening of Rakow Middle School
  • Growth-related staffing needs
  • Increases in special education and safety requirements
• Long-range projections indicate continued deficits in future years under current funding levels.

Next Steps

• The Board is scheduled to vote on the 2025–2026 tax rate and the potential VATRE call on August 18.
• If called, the VATRE would appear on the November 4, 2025, general election ballot.

Rockwall ISD Budget Update: Legislative Actions and District Ongoing Funding Challenges
Following the 89th Texas Legislative Session, Rockwall ISD appreciates the Legislature’s effort in public education through House Bill 2 (HB2) aimed at teacher pay, school safety, and operational support. These efforts reflect a step forward in supporting schools across Texas — and we are thankful for the work.

At the same time, while these funding changes are appreciated, they do not fully meet the needs of fast-growing districts like Rockwall ISD, especially in areas impacted by inflation, special education costs, long-term fiscal sustainability and the lack of Voter Approved Tax Ratification funding when compared to a majority of neighboring districts.

What House Bill 2 Did Fund:

• Teacher Pay Increases –
  • Rockwall ISD teachers that meet certain criteria set by House Bill 2 will receive a raise of $2,500 to $5,000 depending on years of service.
  • However certain teachers were excluded and will receive no increase from the state approved House Bill 2, and many positions —such as counselors, librarians, and nurses—are not included.
• Basic Allotment Increase – $55 per student
  • The small adjustment is not enough to account for inflation since 2019. Rockwall ISD’s Legislative Priorities included increasing the state’s basic allotment by $1,490 to fully fund Rockwall ISD.
• New ABC Allotment – $106 per student average daily attendance or approximately $1.8 million for Rockwall ISD
  • Intended to help offset rising operational costs (utilities, transportation, insurance).
• School Safety – $430 million statewide
  • Roughly doubles current funding to Rockwall ISD, which helps—but doesn’t cover all costs. The increase falls short by over $2 million dollars for safety and security costs in Rockwall ISD.
• Special Education – $250 million for a new Special Education funding model beginning in Year 2 of the biennium (2026-2027).

Where Gaps Remain:
Despite these gains, the legislation fell short in several areas:

• Inflation and Local Budgets
  The $55 Basic Allotment increase covers just 3.8% of the adjustment needed to match inflation since 2019. The new ABC allotment is appreciated, but it doesn’t fully cover rising insurance and other costs.
• Special Education
  The new funding model doesn’t begin until the second year and does not address Rockwall ISD’s annual $7 million unfunded Special Education services.
• Safety Requirements
  While the state increased funding, Rockwall ISD remains underfunded by more than $2 million per year to meet safety and security mandates.
• Unfunded Mandates
  The increases in benefit costs and program requirements have added significant strain to the budget without securing full funding support. For example, HB2 provides salary increases for certain staff, but it will also require the District to pay an additional $650,000 in benefits to the Teacher Retirement System as a result of the new legislation.

Where Rockwall ISD Stands Compared to Peers
Unlike all neighboring districts in Texas House District 33, Rockwall ISD has not passed a Voter-Approved Tax Ratification Election (VATRE)—a local funding option that allows communities to raise additional dollars for teacher compensation and student programs.
As a result:

• Rockwall ISD has the lowest tax rate and lowest per-student funding among comparable districts.
• Most competing districts pay teachers significantly more due to their community’s approval of a VATRE, widening the gap in recruitment and retention.
• House Bill 2’s funding model prioritized smaller districts, which made Rockwall ISD’s competitiveness even more difficult to maintain.

Local Impact Summary
Estimated New Revenue from HB 2 to Rockwall ISD:

• $9.6 million total, including teacher pay, school safety and operational allotments.

Estimated New Required Costs:

• $7.8 million in mandated pay raises, benefit cost increases, and lost local revenue from state formula changes.

Net Impact to Rockwall ISD:
Approximately $1.8 million in local control funding—a positive step, but not enough to close the District’s projected $6.4 million budget deficit for FY 2025–2026.

Looking Ahead
Rockwall ISD is grateful for the state’s efforts and values the partnership with state leaders. At the same time, we remain committed to:

• Sustainable state funding that keeps up with inflation,
• Full funding for safety, special education, and competitive teacher and staff pay, and
• Local options like a Voter-Approved Tax Ratification Election (VATRE) to strengthen our local ability to compete and serve our students, teachers and staff.

Approval of Updated Policy FNCE (LOCAL) in Compliance with HB 1481 (Student Personal Communication Device)
The Board approved updated Policy FNCE (LOCAL) in compliance with House Bill 1481. The 89th Texas Legislature passed House Bill 1481, which was signed by the Governor on June 20, 2025, prohibiting “a student from using a personal communication device while on school property during the school day.” Per HB 1481, Trustees of a school district shall adopt, implement, and ensure the district or school complies with a written policy prohibiting a student from using a personal communication device while on school property during the school day. The policy must establish disciplinary measures to be imposed for violation of the prohibition and may provide for confiscation of the personal communication device. More information, including an FAQ, will be posted on the district’s website under the Student Services Department at www.rockwallisd.com on Tuesday, August 5.

Approval of 2025-2026 Student Code of Conduct
The Board approved the Student Code of Conduct, which reflects board policy and new state laws per the 89th Texas Legislature. The Student Services Department along with campus and district administration reviewed it for the 2025-2026 school year.

Information about the 2025-2026 Student Handbook
District leadership presented information about the 2025-2026 Student Handbook. District and campus leadership have reviewed and adjusted the 2025-2026 Student Handbook in accordance with new state laws per the 89th Texas Legislature.

Press release submitted by Luci Mouton, edited for publication in Blue Ribbon News. Courtesy photos.

  feature, Rockwall ISD, rockwall isd board of trustees