tax ratification election presentation

AN UPDATE ON

SCHOOL FINANCE& TAX RATIFICATION ELECTION

THE TEXAS LEGISLATURE UNDER-FUNDED EDUCATION

BY $5.4 BILLION FOR A TWO YEAR PERIOD!

WHAT IMPACT DOES THIS HAVE ON

GEORGETOWN ISD?

$7.2Million

in State Aid

20112012

4.8Million

20122013

2.4Million

BESIDES STATE AID REDUCTIONSRevenue per student frozen since 2006.No additional revenue due to increased property values.Reduction also in Federal Entitlements.Increased operational costs.

WHAT HAS GISD DONE TO MEET THESECHALLENGES OF REDUCED REVENUE?

Georgetown ISD

PERSONNEL REDUCTION HISTORY

Employees Reduction

2010-2011 1692 -2011-2012 1570 (122)

2012-2013 1484 (86)

208

Three YearSalary/Benefit Freeze

for all Employees

Eliminationof all Major

Capital Purchases

OTHER REDUCTIONSUse of Substitutes - Sub Benefits

Staff Travel - Supplies - Bus RoutingTrash Pickup - and more ...

GEORGETOWN ISD

CURRENT BUDGET ANALYSIS

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At theend of20122013

$653,674General Fund Deficit

GEORGETOWN ISD

TAX RATE INFORMATION

TAX RATE COMPONENTSGeneral Fund (Maintenance and Operations M&O)

Predominately used for employee salaries and benefits.Utilities, Supplies, Equipment, TravelContracted Services

Debt Service (Interest and Sinking I&S)

Can only be used for payment on bonds sold to construct district facilities.Cannot be used for operational costs such as salaries.

Williamson County School Districts

TOTAL TAX RATE 2011-2012HuttoHuttoHuttoHuttoHuttoHuttoHuttoHuttoHuttoHuttoHutto $1.5401

LeanderLeanderLeanderLeanderLeanderLeanderLeanderLeanderLeanderLeander $1.4998

PflugervillePflugervillePflugervillePflugervillePflugervillePflugervillePflugervillePflugervillePflugerville $1.4800

TaylorTaylorTaylorTaylorTaylorTaylorTaylorTaylor $1.4500

JarrellJarrellJarrellJarrellJarrellJarrellJarrell $1.3900

GEORGETOWNGEORGETOWNGEORGETOWNGEORGETOWNGEORGETOWNGEORGETOWN $1.3580

Round RockRound RockRound RockRound RockRound Rock $1.3350

Liberty HillLiberty HillLiberty HillLiberty HillLiberty Hill $1.3350

FlorenceFlorenceFlorenceFlorence $1.3000

ThrallThrallThrall $1.2100

GrangerGranger $1.1050

Coupland $1.0401

GEORGETOWN ISD INFO ON A

TAX RATIFICATION ELECTION

Understanding School FinanceSchool 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.

IT’S ALL ABOUT THE PENNIES

Gold Pennies ($1.04-$1.06)This amount brings in taxpayer dollars and generates additional State aid.

Silver Pennies ($1.00-$1.04)The amount allowed by state law without voter approval.

Bronze Pennies ($1.06-$1.17)The amount brings in taxpayer dollars, but a portion of the funds is given to the State.

FOR GEORGETOWN ISD

- Four cents makes sense -Citizens approval of moving General Fund

tax rate from $1.04 to $1.08will generate revenue gain of $2.18 million.

Georgetown ISD

ANALYSIS IN PENNY INCREMENTS

TAX RATEOF

$1.05

TAX RATEOF

$1.06

TAX RATEOF

$1.07

TAX RATEOF

$1.08

LOCALTAXPAYERAMOUNT

$536,081 $1,071,368 $1,605,872 $2,139,605

REVENUEINCREASE

WITHSTATE AID

$711,527 $1,420,998 $1,785,811 $2,180,174

Georgetown ISD

ANALYSIS IN PENNY INCREMENTSTAX RATE

OF$1.08

TAX RATEOF

$1.09

TAX RATEOF

$1.13

TAX RATEOF

$1.17

LOCALTAXPAYERAMOUNT

$2,139,605 $2,672,577 $4,797,108 $6,910,281

REVENUEWITH

STATE AID$2,180,174 $2,558,398 $4,061,644 $5,549,783

+ / -GISD GETSTO KEEP

+$40,569 -$114,179 -$735,464 -$1,360,498

Georgetown ISD

TRE TAX LEVY IMPACTType of

PropertyTaxes at

Current RateTaxes at TRE

Approved RateAnnual

DifferenceMonthlyAverage

$100,000Home $1,358 $1,398 $40 $3.33

$194,000Average Home $2,640 $2,718 $78 $6.50

$500,000Business $6,790 $6,990 $200 $16.67

$1,000,000Business $13,580 $13,980 $400 $33.34

NOTEOver 65 and disabled individuals whose taxes are frozen

WILL NOT experience any tax increase if the TRE is passed.

Maintain the level and qualityof current student programs.

HOW WOULD TRE FUNDS BE USED?

GEORGETOWN TRE SUMMARY

Voters will be asked to approve an additional $0.04 per $100 tax rate.Proposed tax rate will generate an additional $2,180,174 in state and local revenues.Early voting begins 9/24.Election date is 10/9/12.