HPISD’s Board of Trustees voted to reduce the district’s tax rate to $0.8347 per $100 valuation on Aug. 26, a 3.71% reduction from last year’s rate of $0.8669.
The Board approved a maintenance and operations tier I tax rate of $0.5847. School districts are heavily regulated, and have a very limited amount of discretion in setting this tax rate.
This year, HPISD is prohibited from imposing a tax rate higher than $0.5847. But it also can’t collect a lower tax rate without being penalized with a reduction in its per-student funding, explained board member Blythe Koch.
“While they will call it the maximum tax rate, it’s actually, in my view, the minimum tax rate that we can charge,” she said.
Maintenance and operations tax dollars are subject to recapture, and are used for daily expenses, such as teacher and staff salaries.
The golden pennies approved by voters in 2021 account for $0.08 per $100 valuation of the total tax rate. They also fund daily operational expenses, but remain entirely within HPISD and are not subject to recapture.
Neighborhood Spotlight
Park Cities
Where the Park Cities Stay Connected.
The board approved an interest and sinking tax rate of $0.17 per $100 valuation. Interest and sinking dollars are used for the payment of principal and interest on debt. This rate has remained at $0.17 since the 2021-22 school year. The district assured voters prior to the passage of its $137.3 million bond that it would not increase.
Also during the meeting, the district:
- Received updates on the Honor Code, student test results, staff compensation, and the progress of projects funded by the bond approved by voters in November. Look for more information on bond projects in Park Cities People’s October issue, which will be delivered the week of Sept. 22.
- Recognized seventh-grader Alina Manhas, the winner of the district’s 2025-26 Birthday Card Contest. Manhas’ design will be featured on monthly birthday cards distributed to district employees.
- Accepted a $1.8 million gift from the Highland Park Education Foundation. The contribution was made possible by the success of Mad for Plaid, the foundation’s annual districtwide fundraising campaign focused on addressing HPISD’s most critical and immediate needs.
