Eanes ISD trustees adopted a lower property tax rate of $0.8254 per $100 of valuation for the 2026-27 fiscal year this week, but they postponed a decision on staff raises until September, leaving teachers and staff waiting to learn whether they will see a 2% pay increase or a $700 one-time payment. The delay hinges on whether a pending $1.5 million land sale to a local library district closes in time to justify the additional spending without draining the district's reserves.
The new rate includes $0.7054 for maintenance and operations and $0.12 for interest and sinking, according to Community Impact. Eanes ISD Chief Financial Officer Pete Pape said the continued decline in the maintenance and operations rate has largely resulted from statutes passed by the Texas Legislature, per the outlet's report. The district adopted its overall 2026-27 budget in June, and the board's decision this week means residents will see a slightly lower tax rate than in the prior fiscal year.
That downward trend has been building for years. Eanes ISD's total tax rate for fiscal year 2025-26 was set at $0.8322 per $100 of valuation, itself down from $0.8855 the year before, a decline Eanes ISD attributes to state-mandated tax compression. Even with the new lower rate, Eanes ISD's residential market values average more than $2 million, and its tax rate still sits well below neighboring Lake Travis ISD's $1.0397 per $100 valuation, according to a comparison from Brandon Galia Real Estate.
Why the Raise Vote Got Punted
The budget options on the table included either a 2% pay increase or a $700 one-time payment for eligible staff, but the board voted to wait until the land sale is finalized before committing to either. Trustee Koennecke suggested postponing the compensation-plan vote on Aug. 18, and some trustees said approving an increase immediately would cause a budget shortfall and continued decline in the district's fund balance, the outlet's report notes.
Not everyone on the board agreed with waiting. Trustees James Bradley and Kelly Marwill both supported moving forward with a compensation plan rather than waiting for the land-sale contract to close. “There are going to be unknown variables all the time, but the board should discuss and fairly compensate staff,” Marwill said, per the same account.
Board member John Troy framed the delay as part of a broader pattern of difficult tradeoffs. “The district has made painful but strategic decisions in recent months to balance the budget,” Troy said, adding that the district must continue making tough decisions to honor its plan to provide raises over the next two years, according to the outlet's report.
The Land Sale in Limbo
The land in question sits at 1309 Westbank Drive and was budgeted to generate about $1.5 million in additional revenue for the district. Trustees ultimately postponed voting on the sale to the Westbank Community Library District indefinitely, removing those anticipated revenues from the adopted budget pending finalization of the sale, per the outlet's reporting. District officials are preparing more information on the land sale and other data ahead of the board's next meeting on September 22.
The parcel has deep roots in the district's relationship with the library. Eanes ISD originally leased the land to the Westbank Community Library District for 99 years at a rate of just $1 per year, according to Westbank Libraries. The pending $1.5 million sale would formalize what has long been a low-cost arrangement between the two public institutions.
Why Eanes ISD's Budget Stays This Tight
The tension between Eanes ISD's wealth and its budget squeeze traces back to Texas school finance law. Because Eanes ISD is classified as a property-wealthy district, it is subject to state recapture requirements — commonly called “Robin Hood” — that divert roughly 60% to 65% of its locally collected maintenance and operations tax revenue to the state general fund, per Eanes ISD's own bond materials. Since that recapture system took effect in 1995, the district has surrendered more than $1.6 billion in local property tax receipts to the state, sending between $76 million and $95 million annually in recent fiscal years.
To close a projected multi-million dollar gap for the 2026-27 fiscal year, the district had already implemented a $2.8 million “Right Size Plan” earlier this year, cutting administrative positions and reducing 69 full-time equivalent staff positions through attrition, as reported by Community Impact in April. Those cuts, combined with the adopted budget, left the district with just an $80,000 surplus. The nonprofit Eanes Education Foundation has also stepped in to help, granting $2 million to the district for the 2025-26 school year that directly funds roughly 36 teacher and staff positions, according to the foundation.
A Premier District Facing Real Constraints
The budget squeeze comes even as the district's academic reputation remains among the strongest in the country. Eanes ISD was ranked the #1 public school district in Texas and #7 nationally in Niche's 2026 rankings, with flagship Westlake High School named the state's top comprehensive public high school. That standing helps explain why trustees like Troy and Marwill are eager to keep pay competitive even as the maintenance and operations rate funds only day-to-day operating expenses, separate from the interest and sinking rate that covers debt payments on bonds for capital projects.
Those bond refunding efforts have kept the interest and sinking rate steady since 2020-21, even as the district looks toward a much larger financial undertaking. Eanes ISD Eyes $900M Bond for Westlake campuses through a Bond Advisory Committee formed this year to model tax-rate impacts ahead of a potential May 2027 election. Because capital bond funding operates on a separate track from the operating budget, the district could pursue that roughly $900 million bond without disturbing its comparatively low tax rate — even while teachers wait to hear whether they'll get a raise at all.
Separately, and unrelated to the budget fight, Eanes ISD confirmed that beginning this school year it will display donated Ten Commandments posters in every classroom to comply with Texas Senate Bill 10, enacted by the 89th Texas Legislature. The compensation question, however, remains squarely in the board's hands, with trustees set to revisit both the staff pay plan and the Westbank land sale at their September 22 meeting.
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