When the Midway ISD Board of Trustees called an $83.5 million bond election for November 4, 2025, one of the most common questions was: How can the district fund this without increasing the tax rate?
The answer involves how school bonds and property values work together.
“Much like a home mortgage, school districts use bonds to pay for major investments such as facilities, safety upgrades, and technology infrastructure,” Midway ISD Assistant Superintendent of Finance Wesley Brooks explained. “These long-term improvements are not funded from the district’s day-to-day operating budget, which covers salaries, utilities, and classroom expenses. Instead, bonds allow districts to spread the cost of large projects over time while maintaining financial stability.”
Over the past several years, Midway ISD has strategically reduced its debt through a defeasance plan—retiring more than $11.4 million in bond debt early since 2019 and saving taxpayers over $5 million in interest costs. This proactive approach has lowered overall debt service and created capacity within the district’s Interest & Sinking (I&S) fund, allowing Midway to issue new bonds without increasing the tax rate.
This financial strength is further supported by growth in the local tax base. As more homes and businesses are built within the district, the total taxable property value increases, allowing the same tax rate to generate more overall revenue.
“It’s also important to note that Midway ISD’s tax rate has dropped 38 cents since 2018, thanks to responsible financial management and a growing economy,” Midway ISD Superintendent Dr. Chris Allen said. “Even with this proposed bond, the district can maintain one of the lowest tax rates in Central Texas while addressing facility and technology needs identified by the community’s Facility Study Committee.”
In Texas, bond funds are one of the few tools available for school districts to finance major construction, land, and infrastructure projects. These funds stay local—none of them are subject to the state’s “recapture” system—ensuring that every dollar directly benefits Midway students and facilities.
The proposed bond focuses on maintaining and improving existing campuses, upgrading safety and technology, and ensuring equitable learning environments across the district. Projects include HVAC, roofing, and plumbing repairs; classroom technology and devices; fine arts and athletic space updates; and new school buses.
Through early debt management, tax base growth, and strategic financial planning, Midway ISD can plan for the future without increasing the tax rate—a finance strategy that preserves both quality education and taxpayer value.
Learn more about the proposed projects, tax rate, and voting information at www.midwayisdbond.org.
