Estimated Impact
The property tax impact associated with the $232 million bond for Cleburne ISD, based on a $231,000 average home value with a homestead exemption, will decrease of $475.66 per year or $39.64 per month, if all three propositions are approved by voters this November.
A $231,000 average home value without a homestead exemption will see an increase of $23.10 per year or $1.93 per month. This impact included the most recent compression and assumes the additional $40,000 homestead exemption is approved by voters in November.
The combination of compression and an additional $40,000 on top of the existing $100,000 homestead exemption will cut school property taxes for a homesteaded property. This would take effect in January 2026.
Ballot Language Requirement
Texas law requires all school district bond propositions to include the statement “THIS IS A PROPERTY TAX INCREASE” on the ballot. This requirement has been in place since 2019, following legislation passed by the Texas Legislature. The statement must appear on every school district bond election ballot, even in cases where the bond will not result in an increase to the district’s tax rate. This ensures consistent language across all school districts, but it can be misleading without additional context.
Over 65 Homestead Exemption
Cleburne ISD property taxes for citizens ages 65 or older would not be affected by the bond election as long as a homestead and over 65 exemption application has been filed with the local appraisal district.
According to state law, the dollar amount of school taxes for a person 65 years of age or older cannot be increased above the amount paid in the first year after the person turned 65 regardless of changes in tax rate or property value unless improvements are made to the home.
For more information on the over 65 exemption, visit the Central Appraisal District of Johnson County website.
Cost of Delay
Postponing the bond program would expose the District to rising construction costs. Industry projections show construction expenses increasing by about 10% each year. For the proposed bond projects, this would mean an estimated additional $23.2 million in costs if delayed just one year, with another 10% increase expected each year after.
School Taxes Include Two Tax Rates
Public school taxes involve two figures that divide the school district budget into two “buckets.”
The first bucket is the Maintenance and Operations budget (M&O), which funds daily costs and recurring or consumable expenditures such as teacher and staff salaries, supplies, food and utilities.
The second bucket is the Interest and Sinking Fund (I&S), also known as Debt Service, which is used to repay debt for capital projects approved by voters through bond elections.
Proceeds from a bond issue can be used to renovate facilities, update building infrastructure, and purchase capital items such as equipment, buses, and technology. By law, I&S funds cannot be used to pay M&O expenses, which means that voter-approved bonds cannot be used to increase teacher salaries or pay rising costs for utilities and services.
How School Bonds Work
School districts do not receive state funding for building new schools or completing major renovations. Instead, districts rely on voter-approved bonds to fund these large projects, which are repaid over time—similar to a home mortgage.
Passing a bond provides dedicated funding for school facilities, ensuring that the District’s general operating budget remains focused on teacher salaries, classroom resources, and student programs.