SCHOOL FINANCE JULY 2012 TEXAS LEGISLATURE SLASHED SCHOOL FUNDING - PowerPoint PPT Presentation

CITIZENS COMMITTEE ON SCHOOL FINANCE JULY 2012

TEXAS LEGISLATURE SLASHED SCHOOL FUNDING BY $5.4 BILLION OVER A TWO YEAR PERIOD!

WHAT IMPACT DID THIS HAVE ON GEORGETOWN ISD?

2012 2011 $7.2 2013 2012 4.8 2.4 Million Million Million in State Aid

BESIDES STATE AID REDUCTIONS Revenue per student has been frozen since 2006. Reduction in Federal Entitlements. Increased operational costs.

WHAT HAS GISD DONE TO MEET THE CHALLENGES OF REDUCED REVENUE?

Over 200 Employee Positions Eliminated

Georgetown ISD PERSONNEL REDUCTION HISTORY Employees Reduction 2 2010-2011 1692 - 0 1570 (122) 8 2011-2012 1484 (86) 2012-2013

Georgetown ISD % of Employees by Category 2012-2013 PERSONNEL INFO 50% Teachers 9% Instructional Aides 8% Clerical Staff 7% Professional Support 6% Transportation 6% Custodial 5% Nutrition 3% Campus Administration ESE Staff 2% 2% Maintenance 1% Technology Staff Central Administration 1%

Three Year Salary/Benefit Freeze for all Employees

Elimination of all Major Capital Purchases

OTHER REDUCTIONS Substitute Teachers - Staff Travel Bus Routing - Supplies - and more ...

GEORGETOWN ISD CURRENT BUDGET ANALYSIS

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Georgetown ISD BUDGET 2012-2013 General Food Service Debt Service Memo Total Fund Fund $78,826,429 $5,365,076 $17,326,174 $101,517,679 Revenue $79,480,103 $5,365,076 $16,399,987 $101,245,166 Expenditure -$653,674 $0 $926,187 $272,513 Net $0 $0 $0 $0 Other Sources Beginning $8,085,592 $136,101 $7,351,338 $15,573,031 Fund Balance Ending $7,431,918 $136,101 $8,277,525 $15,845,544 Fund Balance

At the $653,674 end of 2012 2013 General Fund Deficit

GEORGETOWN ISD TAX RATE INFORMATION

TAX RATE COMPONENTS General Fund (Maintenance and Operations M&O) Predominately used for employee salaries and benefits. Utilities, Supplies, Equipment, Travel Contracted Services Debt Service (Interest and Sinking I&S) Can only be used for payment on bonds sold to construct school district facilities. Cannot be used for operational costs such as salaries.

Williamson County School Districts TOTAL TAX RATE 2011-2012 Hutto Hutto $1.5401 Leander Leander Leander $1.4998 Pflugerville Pflugerville $1.4800 Taylor aylor $1.4500 Jarr Jarrell $1.3900 GEORGETOWN GEORGETOWN GEORGETOWN $1.3580 Round Rock Round Rock $1.3350 Liberty Hill Liberty Hill $1.3350 Florence Flor ence $1.3000 Thrall Thrall $1.2100 Granger Granger $1.1050 Coupland $1.0401

Georgetown ISD TAX RATE HISTORY YEAR M & O I & S TOTAL * 2012-2013 * 1.0400 0.318 1.3580 2011-2012 1.0400 0.3180 1.3580 2010-2011 1.0400 0.2500 1.2900 2009-2010 1.0400 0.2500 1.2900 2008-2009 1.0400 0.2500 1.2900 2007-2008 1.0400 0.2500 1.2900 2006-2007 1.3700 0.2550 1.6250 2005-2006 1.5000 0.2550 1.7550 2004-2005 1.5000 0.2650 1.7650 * Budgeted Tax Rate, not Adopted Tax Rate *

GEORGETOWN ISD INFO ON A TAX RATIFICATION ELECTION

Understanding School Finance School districts in Texas are allowed to tax up to $1.04 per $100 of property value for the district’s maintenance and operations. Tax dollars collected are supplemented with State and Federal funds. With voter approval, districts are allowed to to add an additional 13 cents to the tax rate.

HOW WOULD TRE FUNDS BE USED? Maintain the level and quality of current student programs.

IT’S ALL ABOUT THE PENNIES Silver Pennies The amount allowed by state law without voter approval. Between $1.00-$1.04

IT’S ALL ABOUT THE PENNIES Gold Pennies This amount brings in taxpayer dollars and generates additional State aid. Between $1.04-$1.06

IT’S ALL ABOUT THE PENNIES Bronze Pennies The amount brings in taxpayer dollars, but a portion of the funds is given to the State. Between $1.06-$1.17

FOR GEORGETOWN ISD - Four cents makes sense - Citizens approval of moving General Fund tax rate from $1.04 to $1.08 will generate revenue gain of $2.2 million.

Georgetown ISD ANALYSIS IN PENNY INCREMENTS $1.05 $1.06 $1.07 $1.08 $536,081 $535,287 $534,504 $533,733 Taxpayer Amount LOCAL $536,081 $1,071,368 $1,605,872 $2,139,605 Amount Retained $711,527 $709,471 $364,813 $394,363 STATE RETAINED BY DISTRICT Additional State Aid $175,446 $174,184 -$169,691 -$139,370 RECAPTURE Cumulative $711,527 $1,420,998 $1,785,811 $2,180,174 Revenue Increase Green color amounts indicate a cumulative total of how much GISD taxpayers contribute.

Georgetown ISD ANALYSIS IN PENNY INCREMENTS $1.08 $1.09 $1.13 $1.17 $533,733 $532,973 $530,065 $527,265 Taxpayer Amount LOCAL $2,139,605 $2,672,577 $4,797,108 $6,910,281 Amount Retained $394,363 $378,224 $364,672 $370,835 STATE RETAINED BY DISTRICT Additional State Aid -$139,370 -$154,749 -$155,393 -$156,430 RECAPTURE Cumulative $2,180,174 $2,558,398 $4,061,644 $5,549,783 Revenue Increase Green color amounts indicate a cumulative total of how much GISD taxpayers contribute.

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Georgetown ISD TRE TAX LEVY IMPACT Type of Taxes at Taxes at TRE Annual Monthly Property Current Rate Approved Rate Difference Average $100,000 $1,358 $1,398 $40 $3.33 Home $194,000 $2,640 $2,718 $78 $6.50 Average Home $500,000 $6,790 $6,990 $200 $16.67 Business $1,000,000 $13,580 $13,980 $400 $33.34 Business NOTE Over 65 and disabled individuals whose taxes are frozen WILL NOT experience any tax increase if the TRE is passed.

School Districts in Texas TRE HISTORICAL INFORMATION YEAR RATIFIED NOT RATIFIED TOTAL RATIO 2006 14 1 15 93% 2007 94 26 120 78% 2008 71 46 117 61% 2009 29 18 47 62% 2010 60 17 77 78% 2011 32 12 44 73% 2012 4 0 4 100% TOTAL 304 120 424 72% Source: Joe Smith, Texas ISD - TRE Totals for 2012 accurate as of July 11, 2012

GEORGETOWN TRE SUMMARY Voters will be asked to approve an additional $0.04 per $100 tax rate. Proposed tax rate will generate an additional $2,200,000 in state and local revenues. Proposed election date is October 9, 2012.

WHERE DO WE GO FROM HERE? Next meeting on Monday, July 23rd Check the pulse of your community. Let us know how we need to proceed.

CITIZENS COMMITTEE ON SCHOOL FINANCE JULY 2012