[Note: The “Background” section for both of the Florence ISD propositions is the same.]
Florence ISD faces budgetary challenges common to many Texas public school districts, especially with Maintenance and Operations (M&O) budgets. M&O tax revenues pay for day-to-day operations of school districts, including salaries of teachers, administrators, and support staff. Inflation and mandates from the State Legislature have increased operating costs. The State Legislature’s limited increase to the Basic Student Allotment during the last legislative session (after six years of no increases) has not kept pace with inflation. The Legislature’s continuing tax rate compression measures and a higher homestead exemption keep tax rates lower for property owners, but make it difficult for school districts to raise enough money to cover their operating expenses. Additionally, Florence ISD plans to give teachers and staff a 2% raise to help staff affected by inflation and to keep the district competitive in hiring.
Florence ISD has proposed two ballot propositions to deal with these budget challenges. Proposition A would increase the district’s M&O revenue by raising the M&O tax rate. Proposition B would reduce expenditures from M&O funds by refinancing a debt obligation so the district can service it from its Interest and Sinking (I&S) funds, instead of from M&O funds.
THIS IS A TAX INCREASE.
Ratifying the ad valorem tax rate of $1.0182 per $100 valuation in Florence Independent School District for the current year, a rate that will result in an increase of 9.07 percent in maintenance and operations tax revenue for the District for the current year as compared to the preceding year, which is an additional $734,420.
In Proposition A, Florence ISD proposes to increase the M&O tax rate from last year’s $0.7072 to $0.7328, and to decrease the I&S tax rate from last year’s $0.3110 to $0.2854 (all rates are per $100,000 taxable value). The result will be the same overall tax rate ($1.1082) as last year, but with more tax revenue allocated to M&O funds and less to I&S funds.
If Proposition A passes, the changed M&O rate will produce an additional $734,420 in M&O revenue. Not all of this revenue will be available to the district, though, because some of it is subject to state recapture. The district estimates this change will make approximately $200,000 available for the district for maintenance and operating expenses, including the 2% pay raise for teachers and staff.
If Proposition A fails, the district will not implement the 2% raise for faculty and staff, and the district’s budget deficit will increase from approximately $160,000 to $460,000. Assuming the district does not raise the I&S tax rate, the overall tax rate would be $0.9862 per $100,000, which would decrease taxes by approximately $3.17 per $10,000 of taxable property value.
Website: https://aptg.co/BqzFdp
[Note: The “Background” section for both of the Florence ISD propositions is the same.]
Florence ISD faces budgetary challenges common to many Texas public school districts, especially with Maintenance and Operations (M&O) budgets. M&O tax revenues pay for day-to-day operations of school districts, including salaries of teachers, administrators, and support staff. Inflation and mandates from the State Legislature have increased operating costs. The State Legislature’s limited increase to the Basic Student Allotment during the last legislative session (after six years of no increases) has not kept pace with inflation. The Legislature’s continuing tax rate compression measures and a higher homestead exemption keep tax rates lower for property owners, but make it difficult for school districts to raise enough money to cover their operating expenses. Additionally, Florence ISD plans to give teachers and staff a 2% raise to help staff affected by inflation and to keep the district competitive in hiring.
Florence ISD has proposed two ballot propositions to deal with these budget challenges. Proposition A would increase the district’s M&O revenue by raising the M&O tax rate. Proposition B would reduce expenditures from M&O funds by refinancing a debt obligation so the district can service it from its Interest and Sinking (I&S) funds, instead of from M&O funds.
THIS IS A TAX INCREASE.
Ratifying the ad valorem tax rate of $1.0182 per $100 valuation in Florence Independent School District for the current year, a rate that will result in an increase of 9.07 percent in maintenance and operations tax revenue for the District for the current year as compared to the preceding year, which is an additional $734,420.
In Proposition A, Florence ISD proposes to increase the M&O tax rate from last year’s $0.7072 to $0.7328, and to decrease the I&S tax rate from last year’s $0.3110 to $0.2854 (all rates are per $100,000 taxable value). The result will be the same overall tax rate ($1.1082) as last year, but with more tax revenue allocated to M&O funds and less to I&S funds.
If Proposition A passes, the changed M&O rate will produce an additional $734,420 in M&O revenue. Not all of this revenue will be available to the district, though, because some of it is subject to state recapture. The district estimates this change will make approximately $200,000 available for the district for maintenance and operating expenses, including the 2% pay raise for teachers and staff.
If Proposition A fails, the district will not implement the 2% raise for faculty and staff, and the district’s budget deficit will increase from approximately $160,000 to $460,000. Assuming the district does not raise the I&S tax rate, the overall tax rate would be $0.9862 per $100,000, which would decrease taxes by approximately $3.17 per $10,000 of taxable property value.
Website: https://aptg.co/BqzFdp
