Bryan ISD Budget & Tax Rate

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Cleopatra Webb
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1 Bryan ISD Budget & Tax Rate

2 District Goals for Budget Development 1. Meet the educa,onal needs of every student by con,nually addressing teaching and learning so all students reach their maximum poten,al. 2. Bryan ISD will maintain a high quality workforce to support student success. 3. Op,mize resources to support district goals and student success. 4. Bryan ISD will successfully implement the District Realignment Project. 5. Proac,vely improve communica,on and percep,on of Bryan ISD by engaging the students, community and district employees. 2

3 Defini7ons ADA Average Daily AMendance Enrichment Pennies Pennies on the tax rate, funded at Aus,n ISD s wealth I&S M&O Interest & Sinking tax rate (for debt payments) Maintenance & Opera,ons tax rate (for general opera,ng costs) WADA Weighted Averaged Daily AMendance 3

4 Proposed Budget Summary General Fund Debt Service Food Service Total Revenue $ 136,394,277 $ 20,344,031 $ 10,279,000 $ 167,017,308 Expenditures $ 139,905,009 $ 20,344,031 $ 10,279,000 $ 170,528,040 Net Affect ($ 3,510,732) $ 0 $ 0 ($ 3,510,732) 4

5 Es7mated General Fund Revenue Budget Assump7ons: Enrollment held constant Property Value Growth 12.4% Tax Rate - $1.04 per $100 value Source Amount Property Taxes $ 75,434,613 State Revenue $ 52,604,004 TRS on Behalf $ 5,878,200 Federal $ 1,030,000 Other $ 1,097,460 Total $ 136,394,277 5

6 General Fund Expenditures Include: Healthcare plan increases Special Educa,on Staffing Staffing increases for realignment and grade level enrollment increases 3% of the midpoint rate increase for auxiliary and paraprofessional staff Es,mated raise amount for professional and administra,ve staff TRS rate increases Buses (7) CCTV upgrades General Infla,on Con,nua,on of Bryan s Excellence for Students and Teachers (BEST) 6

7 Recommenda7ons to Address ShorUall: Con,nue to monitor expenses Seek out addi,onal efficiencies Maximize general opera,ng revenue Maximizing revenue is the primary objec7ve. 7

8 What factors comprise our current revenue? The State Funding Formula Enrollment & AMendance Special Popula,ons Property Values (determined by the Appraisal District) Tax Rate 8

9 What op7ons are there to increase revenue? A legisla,ve overhaul of the school finance system (out of the District s control) An increase in enrollment (which also increases expenses and is beyond the District s control) An increase in the tax rate 9

Since the 2008 funding formula change the state has gone from funding 48.8% to 42.7% in 2017.

10 Since the 2008 funding formula change the state has gone from funding 48.8% to 42.7% in The ra,o is expected to con,nue to decline as local property values con,nue to increase. Source: Legisla=ve Budget Board 10

11 Why doesn t growth in property values increase General Fund revenue? Under the current funding formula, each school district has a determined funding level per student. This level is comprised of both property taxes and state funds. As property values grow on a per student basis, state funds decline. 11

12 What makes up the school property tax rate? M&O $1.04 I&S (Debt) $0.31 Current Tax Rate $1.35 Used for General Opera,ons Used for payments on Bonds issued and Approved by the Taxpayers. 12

13 How can we maximize local & state revenue? Tier I: ADA x Basic Allotment Tier II: six golden pennies AusEn ISD s wealth $1.07 à $1.17 equalized up to $31.95 (copper pennies) Bryan ISD is only using 4- cents of its 6- cent limit for golden pennies. Not a priority at this,me. 13

14 How can Bryan ISD use golden pennies to increase state revenue? By holding a Tax Rate Elec,on School finance law in Texas allows districts to receive addi,onal state funding on the first six M&O pennies between $1.00 and $

pennies. To increase the M&O rate from $ 1.04 to $ 1.

15 How much revenue can golden pennies bring? Bryan ISD is only using 4- cents of the 6- cents limit for golden pennies. To increase the M&O rate from $ 1.04 to $ 1.06 requires voter approval. These $0.02 of tax effort can bring an es,mated $4.4 million to Bryan ISD for general opera,ons. 15

4 million from our tax rate alone it would require addi,onal taxa,on of slightly more than $ 0.06.

16 How much $ does Bryan ISD generate per penny on the tax rate? ~~ $ 700,000 To generate $4.4M with our tax rate only: If Bryan ISD were to try to gain $4.4 million from our tax rate alone it would require addi,onal taxa,on of slightly more than $ By maximizing our revenue through the State Funding Formula it will require $ 0.02 of tax effort on the M&O side of the tax rate. This can be obtained with an overall tax rate decrease of $

02 Overall Tax Rate: Current Proposed $ 1.35 $ 1.34 Net Decline $ 0.

17 Why now? Debt Service Tax Rate Current: $ 0.31 Proposed: $ 0.28 Down $ 0.03 Tax Rate Current: $ 1.04 Proposed: $ 1.06 Up $ 0.02 Overall Tax Rate: Current Proposed $ 1.35 $ 1.34 Net Decline $ 0.01 IMPACT: - Tax reduc7on - $4M new revenue for opera7ons Maintenance & Opera7ons 17

bemer then originally projected. Net Decline $ 0.

18 If a TRE passes can we s7ll aggressively pay down debt? Yes! - The District s 2014 bond referendum has been fully sold, with each one receiving an interest rate bemer then originally projected. Net Decline $ With approval from the Board of Trustees, the District has been able to refund some issues (paying down debt), which creates savings and allows us to con,nue aggressively paying off debt. 18

19 What s the 7meline for the Tax Rate Elec7on? Oct. 10 Sept Elec)on Day Loca,on(s): Aug. 7 Public Hearing, Board Approves Budget & Adopts Tax Rate Sept. 11 Last Day to Register to Vote for Oct. 10 elec=on Register to vote at: Early Vo=ng Loca,on: - Arena Hall on Tabor Road Oct. 2 6 Early Vo=ng Loca,on: - Arena Hall on Tabor Road - Arena Hall on Tabor Road - Brazos Center - Brazos County Admin. Bldg. 19

20 Ballot Language 20

21 Thank you! QuesEons?

Budget Development

2017 18 Budget Development March 6, 2017 Board Meeting Overview Debt Service Fund Tax Ratification Election Proposed compensation adjustments General pay increase Equity adjustments Stipend changes Duty