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The Lake Travis Schools Board voted in November to hold a tax ratification election to keep about $ 3 million in tax dollars in local schools annually.
Sometimes referred to as a “penny swap,” the move would allow the district to shift two cents from the interest and declining or I&S tax rate paid on bonds to the maintenance and operating or M&O tax rate that is operations pays off. The M&O fund mainly pays employees’ salaries and benefits.
The ability to transfer these two additional “golden pennies” protected from recovery was part of the 2019 school funding reform proposed in House Bill 3. Neighboring Eanes had a penny swap measure on the ballot last November that was passed by an overwhelming Rand.
CFO Pam Sanchez said that while this might look like a tax hike on the ballot, the board has promised to lower the I&S tax rate if this move is passed, meaning taxes would not go up.
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Board Chairman John Aoueille said he thought this election was a given for local voters.
“No parent in our district should be against taking two cents from I&S and putting it on the M&O side. Your tax rate won’t change, it just gives us more money for teaching and running, ”he said. “Both pennies are golden, which means that we don’t have to pay back any of the money that is generated from these two cents to the state. We can keep everything. This is an enormous benefit for our student body. “
The board also voted to propose a resolution that would have ended the transfer of special powers to the superintendent to respond to the pandemic. The board of directors will examine this again in the next meeting.
The board also approved the district’s budget for the next fiscal year, which is divided into three parts – the general operating budget, the debt payment budget, and the food services budget.
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Sanchez said the total budget is around $ 199 million, up 5% year over year. This is partly due to a raise for the staff and the need to manage the enrollment of new students by hiring more staff.
In June the school board voted unanimously for a 2% increase in funding for all employees in the district. With the raise, employees would receive a higher salary based on the median salary or hourly rate of their position.
The operating budget currently projects a deficit of $ 1.5 million, but Sanchez said the district’s reserve fund is healthy and could help make up the difference if necessary. However, she said household revenue estimates are conservative and could be higher than projected, which would help reduce that deficit.
As of August 10, the district is anticipating enrollment of just over 11,500 students, which is higher than last year and higher than expected growth. About 60% of the district’s spending is on classroom instruction, with additional funding for student support, and services and programs, Sanchez said.
Sanchez said the food service program is usually self-funding and that meals will be free for elementary school students in the coming year as part of a federal program that will reimburse districts for these costs.
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