Lone Star College System approves lower tax rate to support budget, reduce debt

HOUSTON, TX -- The Lone Star College System Board of Trustees approved the proposed 2026 ad valorem property tax rate of $0.1058 per $100 of taxable value on Oct. 1. The rate includes $0.0839 for Maintenance and Operations (M&O) and $0.0219 for Interest and Sinking (I&S) funds.

“Every tax rate decision requires us to balance predictable revenue, our commitment to financial stewardship and taxpayer affordability,” said Kristy Vienne, Ed.D., LSCS vice chancellor, Finance and Administration. “At the same time, we must have the resources to advance our mission, help students thrive in and out of the classroom, and support employees in achieving their goals.”

The 2026 tax rate, which is lower than last year’s $0.1060 rate, will support the system’s Fiscal Year 2027 budget. The M&O portion supports day-to-day operations, while the I&S portion supports debt service on the general obligation bonds. The I&S tax rate will allow the system to apply up to $60 million toward its outstanding general obligation bond debt and generate an estimated $32 million in net long-term savings for taxpayers.

Paying down the debt early would also reduce LSCS’s future debt-service obligations and support its long-term goal of paying off its bonds by 2030-31.

“This I&S tax rate will reduce our total outstanding debt from approximately $404 million to $311 million, putting Lone Star College System at one of its lowest debt levels in recent history,” Vienne said at the Sept. 16 special board meeting. “By paying off debt early and ahead of schedule, we can reduce our long-term obligations and ultimately save taxpayers more in the long run.”

Visit https://www.lonestar.edu/Taxpayer-Information.htm to learn more about LSCS’s property tax rate and find additional taxpayer information.