The Lake Travis ISD board has approved a fiscal-year 2026–27 budget that keeps general fund spending at about $152.7 million and sets up a property tax rate of $1.0329 per $100 of valuation. District leaders are billing it as the lowest rate in Lake Travis ISD history, but with fast-rising property values and sizable state recapture payments, many homeowners are still likely to see their tax bills climb.
The adopted plan projects about $150.96 million in general fund revenue against $152.7 million in expenditures, leaving an estimated $1.2 million shortfall. The district’s debt service fund is budgeted at roughly $63.7 million in revenue, and its food service fund at about $7.17 million, according to Lake Travis ISD.
The proposed total tax rate of $1.0329 breaks down into a $0.7054 maintenance and operations levy and a $0.3275 interest and sinking levy, a slight dip from last year’s $1.0397. Assistant Superintendent Pam Sanchez called the proposal “the lowest tax rate in district history,” according to Community Impact.
What Homeowners Will Pay
District materials show that a homeowner with the average taxable value of $579,691 would owe about $5,988 in Lake Travis ISD taxes under the proposed rate. That total is roughly $300 higher than last year, a 5.12% increase based on budget attachments filed with the board, according to Lake Travis ISD.
Why Bills May Climb Despite a Rate Cut
State recapture, the redistribution program that sends excess local school revenue back to the state, accounts for more than $36.6 million of the district’s budget, while instruction still makes up roughly 60% of Lake Travis ISD spending. Those pressures limit how much a modest tax rate reduction can actually shrink homeowners’ bills, according to Community Impact.
Next Steps And What To Watch
Lake Travis ISD will receive certified property values in July and must submit those figures to the Texas Education Agency, which uses them to calculate districts’ maximum compressed (Tier 1) tax rates, according to the Texas Education Agency. The board is scheduled to take up the tax rate at its August meeting; the district’s public calendar shows regular monthly meetings on the third Wednesday, which this year falls on Aug. 19, per Lake Travis ISD.
