2026 SCUC ISD Bond Financial Impact
How will the 2026 SCUC ISD Bond impact the average taxpayer?
The SCUC ISD Board of Trustees has called a three-proposition bond election for May 2, 2026. The $295 million bond proposal includes upgrades and renovations to facilities across the district, as well as stadium renovations and technology devices.Â
School Finance 101
To truly understand the impact that this election will have on the school district and the local taxpayer, we have to understand a little about how School finance in Texas operates.
Texas Public Schools Operate Out of Two Budgets
Day-to-Day Operations
- Salaries
- Classroom Supplies
- Utilities
- Transportation
- Technology
- General Maintenance
- Safety & Security
Debt Services
- Capital Expenditures
- Land
- Construction/Renovations
- New Buses
Tax Rate
Each budget is governed by specific guidelines detailing how it can be used, and each has a separate tax rate generated from local property taxes, which collectively comprise the district’s total tax rate.
What is the impact of the 2026 Bond on the SCUC ISD Taxpayer?
The $295 million bond proposal is not anticipated to increase the 2026-2027 tax rate and would address safety and security updates, renovations and upgrades to current facilities, infrastructure replacements, stadium renovations and technology devices.Â
Since 2020-2021, the SCUC ISD tax rate has decreased 33 cents. This change reflects intentional adjustments by the Board of Trustees along with tax rate compression from the State of Texas.
Fact and Figures
Debt Per Student
Debt per student is a way to compare how much debt a district has based on the number of students it serves. Compared to nearby districts, SCUC has less debt per student than most.
SCUC ISD’s current debt per student is $20,246
This number is sourced directly from TEA enrollment data and the Annual Financial Report.
Looking at the Full Picture on Tax Rates
A district’s tax rate has two parts:
- Maintenance & Operations (M&O): Pays for day-to-day expenses like staff, programs, and campus operations
- Interest & Sinking (I&S): Pays for voter-approved bond projects
These two parts serve different purposes and are not interchangeable. Bond funds can only be used for voter-approved projects.
Districts with lower taxable value per student may require a higher I&S rate to generate the same level of funding.
SCUC ISD’s total tax rate is $1.0769, within the range of neighboring districts.
Understanding SCUC ISD’s Bond Debt
Bond debt is the total amount borrowed for voter-approved facility projects. SCUC ISD carries less total bond debt than nearby districts. The district has also paid down debt and reduced interest costs through refinancing when possible.
Reducing Debt Over Time
Since 2023, SCUC has reduced bond debt beyond required payments, helping lower future interest costs.
Total bond debt paid down:Â $41.7 million
Interest saved:Â $20.6 millio
Understanding SCUC ISD Bond History
SCUC ISD has not called a bond election since 2016.
The election held in 2025 was a Voter-Approval Tax Rate Election (VATRE). A VATRE applies to the Maintenance & Operations (M&O) portion of the tax rate, which funds day-to-day expenses. A bond election applies to the Interest & Sinking (I&S) portion, which is used for voter-approved facility projects.
Understanding SCUC ISD’s Tax Base
A school district’s tax base affects how much funding it can generate. SCUC ISD has less taxable value per student than nearby districts. For example, each penny of the tax rate generates about $725,000 in revenue for SCUC ISD, compared to about $3.3 million in a district like Comal ISD.
Because of this, SCUC ISD may require a higher I&S tax rate to generate the same level of funding for voter-approved bond projects.
A lower tax base can lead to a higher I&S rate.
| District | Taxable Value | Enrollment | Taxable Assessed Value (TAV) per student |
|---|---|---|---|
| SCUC ISD | $7,249,659,249 | 14,792 | $490,107 |
| Judson ISD | $13,987,159,033 | $22,620 | $618,354 |
| East Central ISD | $8,735,913,060 | 11,829 | $738,517 |
| North East ISD | $47,913,055,318 | 53,732 | $891,704 |
| New Braunfels ISD | $8,806,571,043 | 9,746 | $903,609 |
| Comal ISD | $33,071,541,214 | 30,421 | $1,087,129 |
Homeowners over 65
While this election does not anticipate a tax rate increase in 2026-2027, it is important to know that citizens age 65 or older will not be affected by this or any school bond election.Â
State law caps school taxes for residents 65 or older at the amount paid in the first year after they turned 65, unless significant improvements have been made to their homestead.
The SCUC ISD Board of Trustees lowered the I&S tax rate by six cents to $0.41 for 2025-26. SCUC anticipates no tax increase for the first two years of the bond program. Even if SCUC ISD raises the I&S tax rate in the future, residents 65 years and older who apply for the Homestead Exemption will see no school tax increase as a result of the SCUC ISD bond proposal, as long as they make no significant improvements to their homesteads.
If the bond propositions are approved by voters, the district will sell bonds to fund projects as capacity allows and market interest rates are favorable. SCUC ISD will regularly share the progress of these bond projects.
If the propositions are rejected by voters, SCUC ISD would evaluate alternative ways to address certain identified projects. Some of these projects may need to be addressed using funds from the Maintenance and Operations (M&O) budget. Using M&O dollars for these purposes would require the district to reassess current priorities within the operating budget, which could affect other expenditures, including student programs and staffing.