Just as homeowners borrow money in the form of a mortgage to finance the purchase of a home, a school district borrows money in the form of bonds to finance construction,  renovation  and other capital projects. Both are repaid over time, but in order for a school district to sell tax supported bonds, it must go to the voters for approval. 

School districts are required by law to ask voters for permission to issue bonds in order to pay for capital expenditures for projects like building a new school or making renovations to existing facilities. Districts take out a loan and then pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their house. 

Bond funds can be used to pay for new buildings, additions and renovations to existing buildings, land acquisition, technology, buses, and equipment, among other items. By law, bond funds may not be used to fund daily operating expenses, such as salaries or utilities, which are paid for out of the district’s Maintenance & Operation (M&O) budget.  

The McAllen ISD 2026 Bond was developed through a planning process that incorporated stakeholder input and detailed analysis of district needs. District leadership reviewed campus safety, facility conditions, enrollment projections, and instructional priorities to develop a long-term facilities plan in support of McAllen ISD students. The district worked with the Facilities Forecast Advisory Committee, which included parents, community members, and staff to develop a recommendation to the Board. The resulting bond proposal was approved by the McAllen ISD Board of Trustees for voter consideration.

As state agencies, school districts rely on Maintenance and Operations funds to pay for the day-to-day education of the district's children.  

Bonds allow districts to spread the cost of expensive projects across time without affecting the district’s normal educational operations. Also, bond funds all stay with the district, and they are not subject to state recapture, fluctuations in revenue due to state mandates, or other negative economic influences.  

In short, bonds allow a school district to pay for facility construction or renovations or other capital expenses without impacting its education operations (M&O) fund.

The proposed McAllen ISD 2026 Bond focuses on several key areas, including academic modernization, wellness, safety and security enhancements, expanded learning opportunities, district growth and equity, and critical capital improvements. Together, these investments address instructional spaces, campus safety, capacity demands, and essential building systems across the district.

The District anticipates that the current overall tax rate of $0.93 will remain at the $0.93, and that an increase to the overall tax rate to support the Bond is not anticipated.

Homeowners 65 years of age and older will see no increase in their tax rate as long as they have filed for their senior citizen homestead exemption.

However, significant improvements to your existing homestead can affect your bill.

Homeowners aged 65 or older can secure a significant property tax reduction, with combined exemptions potentially reducing taxable school district value by $200,000.

A school district’s tax rate consists of two parts:

• Maintenance and Operations (M&O) which funds the General Operating Fund, which pays for salaries, supplies, utilities, insurance, equipment, and the other costs of day-to-day operations; and

• Debt Service (Interest & Sinking or I&S) can be used for a variety of special purposes, assuming voter approval. For example, they may finance facility construction and renovation projects, acquire land, or purchase capital equipment, such as technology, and transportation, such as buses.