It’s local government election season, and this now-corrected headline initially introduced Melissa ISD bond measures put forward to address the northeast Collin County district’s rapid growth. With one bond proposition for $800 million, a second for $75 million, and interest generally calculated at 40% to 50%, voters are being asked to approve $1.2 billion in new debt.
Bond Proposition Specifics
Per MelissaISDBond.com, Proposition A for $800 million includes an early childhood center, three to five elementary schools, school renovations, a middle school, a ninth-grade center, plus bus and transportation expansions. The $75 million sought for Proposition B is technology-oriented, entailing upgraded network infrastructure, secure high-speed access to wi-fi and internet, in-classroom technology, and digital safety and security systems, along with devices for students and staff.
The district forecasts Melissa ISD’s 8,400 current students will grow to 12,900 by 2034.
Before a Cardinals for Classrooms PAC posted “Vote for!” signs at key district intersections in late March, many residents were likely unaware of the bond election. And residents are also likely unaware of this election’s potential impact on their current local government debt levels.
Prudent consumers review their existing debt levels when considering a new, especially larger, purchase. They also generally consider any applicable interest on new financial obligations.
Why should voters be different when considering taxpayer-funded debt?
ISD Debt to Overall Local Government Debt
Current government debt levels are a subject local bond proponents generally work to avoid, but this information offers an important perspective to voters concerned with ever-increasing taxpayer-funded debt obligations.
Texas Bond Review Board figures show Melissa ISD’s debt currently stands at $632 million, the city of Melissa’s is $193 million, Collin County’s is $1.12 billion, and Collin County CCD’s is $620 million. These four entities comprise the average Melissa ISD resident’s local tax bill and represent $2.5 billion in current local government debt.
Passage of Melissa ISD’s proposed $1.2 billion bonds will functionally triple the district’s debt to $1.8 billion and raise its voters’ total local government debt to $3.7 billion.
The Melissa ISD bond website states that there will be “no tax rate increase associated with the Melissa ISD May 2025 Bond,” explaining that “the district plans to keep its debt service tax rate at the current $0.50/per $100 of taxable value, even if voters approve the 2025 bond.”
The ISD and its bond supporters posit that this increase will be absorbed by growth. Indeed, they may “plan” as such, but in these times of uncertainty, plans can change, and new conditions can arise such that taxpayers are best served by fully understanding their current government debt picture and future liability.
A State and Nation of Debtors
The Texas Public Policy Foundation’s James Quintero reported earlier this year that “new data from the Bond Review Board (BRB) shows an alarming increase in Texas local debt.” Citing a $40 billion increase from the year prior, TPPF reports that “the total amount owed by cities, counties, school districts, and special districts grew to a combined $499.7 billion in fiscal year (FY) 2024.”
Public school districts are the most heavily indebted at $202.6 billion, or 41% of funds borrowed, and have accumulated approximately $36,600 of debt for every student currently enrolled.
While the article warns that the growth trajectory should be “a top concern for policymakers” because it threatens higher tax bills, potentially softer economic growth, and long-term damage, taxpayers should also take note.
And then there’s our national debt. Click here to see the U.S. Debt Clock in real time. At $36+ trillion, our nation is hurtling toward a solvency crisis. That’s not a popular position, but reality is a pesky thing, reminding us it’s time for serious examination of our across-the-board spending.
A Final Thought
Responsible money managers don’t look at just one aspect of a financial decision. They analyze all the elements. We, as taxpayers, must do the same. It’s a critical step in protecting our personal fortunes and those of our communities—both now and in the future.
Texans for Fiscal Responsibility offered perspective after last year’s May elections, noting how “approving bonds means committing to decades of debt repayment, which can limit future financial flexibility for both local governments and taxpayers.”
To the good, bonds can fund important projects, but on the flip side, they also increase local debt and usually raise property taxes.
As the area’s growth continues, Melissa ISD residents are likely to see numerous bond proposals in the upcoming years. With that, their own interests as well as those of their community will best be served by becoming informed, discerning citizens who cast their votes based on smart financial analysis and knowledge of the governmental playing field.
This is a commentary published with the author’s permission. If you wish to submit a commentary to Texas Scorecard, it must be no longer than 800 words. Send to: submission@texasscorecard.com
