Magnolia ISD Money Matters

Magnolia ISD is growing!

While some public school districts across the state are experiencing significant enrollment decline, that is not the case here in Magnolia ISD.

New students continue to enroll in Magnolia ISD each year.

For the 2025-26 school year, MISD is projected to grow 3.5% or 520 students districtwide. Demographic projections show that MISD will continue to grow about 4% each year thereafter.

District Enrollment Projections

No Data Found

Overcrowded High Schools

Demographic projections reveal that despite having a strong facility plan in place, the district will experience overcrowding at the district’s two high schools within the next few years. Because it takes about four years from the planning phase to voter approval and completed construction of a new high school, the cost of construction continues to rise and MISD does not receive facility funding from the state, a committee will begin meeting to discuss options for managing student growth.

Strong Housing Market

Magnolia ISD has 38 actively building housing subdivisions and 15 future housing subdivisions in various stages of planning. Of these, groundwork is underway on more than 3,200 lots within 14 subdivisions.

Local growth means more money for schools, right? 

Not necessarily.

People see new homes being built and property values grow and believe that public schools benefit from that growth. Unfortunately, property value growth does not benefit Magnolia ISD’s operating budget. In fact, under the current Texas school finance formulas, when property values increase, state funding actually decreases.

New students do generate some additional state funding but only based on good attendance.

The good news is property value growth does positively impact the interest and sinking or debt service side of the budget. Property value growth is one of the primary reasons we have not had to increase our debt service tax rate in the past two bonds elections (2015 and 2022), nor do we anticipate having to increase the tax rate for any bond elections in the near future.

Let's take a look at the local MISD budget.

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