Stafford families will see no tax rate increase next school year, but a shrinking tax base means the district is doing more with less.
Chief Financial Officer Dovran Ovezov will present a proposed $45.1 million general fund budget and a $1.00212 per $100 valuation tax rate for 2026-27 at a joint workshop of the Stafford Municipal School District Board of Trustees and Stafford City Council on Tuesday, Aug. 11, according to the district's budget workshop materials. The meeting begins at 7 p.m. in the Scarcella Administration Building Board Room, 1633 Staffordshire Road.
The proposed tax rate is essentially unchanged from the current $1.002121 rate approved unanimously 14-0 on Aug. 25, 2025, when all seven SMSD trustees and all seven City Council members voted yes under Board President Ash Hamirani and Mayor Ken Mathew. But the district's certified taxable value has dropped 3.16% to roughly $4.18 billion, which means local property tax collections are projected to fall by about $1.2 million, from $33.45 million to $32.23 million.
State funding is projected to offset much of that gap, rising from $8.67 million to $10.74 million thanks to increased Foundation School Program and Teacher Retention Allotment dollars.
What the budget means for classrooms
The balanced budget dedicates 54% of spending to classroom instruction, up from 53% last year. That translates to $24.5 million directed at the district's five campuses: Stafford High School, Stafford Middle School, Stafford Elementary School, Stafford Early Childhood Center and Stafford MSD STEM Magnet School.
Payroll accounts for 77% of the budget. Staff will not receive general pay raises. Teachers will get step increases, costing the general fund an estimated $101,996. The district is also boosting its TRS Active Care employer health insurance contribution from $250 to $280 per month per employee, adding roughly $96,480 in costs.
The budget uses a refined average daily attendance of 3,214 students for funding calculations, though actual enrollment stood at 3,560 as of April 29.
Attendance dip costs dollars
Superintendent Dr. Adam Stephens presented enrollment and attendance data at the June 25 budget workshop. Districtwide attendance fell to 94.7% in 2025-26, down from 95.2% the prior year. High school grades saw the steepest drops, with 10th grade declining 1.57 percentage points.
Each percentage point of attendance equals roughly $238,000 in state revenue. The half-point decline cost the district an estimated $121,000.
Bonds and public comment
The same Aug. 11 meeting will include formal action on the Stafford Municipal School District Unlimited Tax Refunding Bonds, Series 2026. As we reported Aug. 5, the bonds authorize up to $4 million in refunding and are projected to save the district at least $500,000. Bond counsel Orrick, Herrington and Sutcliffe, LLP will present before the joint board votes on both a tax levy order and the issuance ordinance.
The Aug. 11 workshop is the second of three scheduled budget sessions. A third optional workshop is scheduled for Tuesday, Aug. 18, per the district's budget calendar. Final adoption of the budget and tax rate is set for Monday, Aug. 24.
The meeting is open to the public and includes a public comments period. Under a new state requirement (HB 1522), the district must provide a physical copy of the proposed budget and a taxpayer impact statement at any meeting where the budget is discussed. Accommodation requests must be made 48 hours in advance by calling the City Secretary's Office at (281) 261-3900.
