2022 VOTER GUIDE
the I&S portion by $0.135. I&S tax rate nances debt, including that incurred for major capital projects. If approved, the VATRE could pro- vide LISD with roughly $32 million in revenue, which allows the district to fund approved salary increases and current programs. If the VATRE fails, the district’s tax rate would be $1.1846 per $100 valua- tion, with the M&O portion falling to $0.8546. Under this scenario, the dis- trict would face a $35 million budget decit, Mitschke said, which equates to funding necessary for 458 positions. Gearing said students and sta will not see a direct eect of a failed VATRE in the current school year, as the board-approved 4%-5% compen- sation increases as well as the de- cit will be nanced by the district’s built-up fund balance. However, he said it would aect the budget for years to come. “From experience, when we looked at budget cuts before, what we tried to do is have as little impact on our student-facing sta as possible,” he said. “But in this scenario there is no way that you can cut $30 million with- out taking those cuts from all parts of the organization.” Johnson voted against holding the VATRE due to the district not having money for the pay increases approved in May, of which a passed VATRE would fund. Johnson also voted against the pay increases. “The budget that was already adopted depends on the passage of the VATRE. This is one of the con- cerns I had about how this VATRE was structured and how we got to this point,” Johnson said. “I would much prefer that we had gambled less on the VATRE passage, but that’s what the board chose to do.”
Area districts holding a VATRE The map below lists other districts in the area that are planning to have a VATRE on the November ballot.
Tax rate over time Leander ISD’s approved scal year 2022-23 tax rate is lower from the tax rate in previous scal years. However, it raises the maintenance and operations portion of the rate, providing the district with more operating revenue, while reducing the interest and sinking portion of the rate.
Maintenance & operations rate Interest & sinking rate
IF VATRE PASSES
IF VATRE FAILS
VATRE in 2021 VATRE in 2022
$2
$1.1846 $1.2746
$1.5
29
$0.5 $1
LEANDER ISD
130
71
183
0
281
PFLUGERVILLE ISD
290
SOURCE: LEANDER ISDCOMMUNITY IMPACT
21
35
district is no longer in recapture. From then on, the district would not receive any revenue from the detached property value, and it will be given to another district instead. Once property is given to another district, it is irre- versible, Mitschke said. LISD would need to raise the inter- est and sinking tax rate to pay existing debt with a smaller tax base after a por- tion of territory is detached. “We want voters to be educated, but it truly is a method of making payment, and if we don’t make that payment, TEA will nd a way to get the money,” Mitschke said. “So it’s not going to go away. Whether the VATRE passes or not, we owe recapture. Whether ACE passes or not, we will pay the state in some form.” Tax rate ramication In August, when the LISD board of trustees adopted a property tax rate of $1.2746 it triggered a VATRE, which is Proposition B on the November ballot.
The overall tax rate consists of a maintenance and operations rate of $0.9446 and an interest and sinking, or I&S, tax rate of $0.33. A VATRE requires school districts to seek voter approval to raise its M&O tax rate above a rate set by state law. LISD’s VATRE would increase the M&O tax rate while lowering the I&S rate—essentially providing the dis- trict with more funds for operations, including employee salaries, insurance and benets. Despite the scal year 2022-23 tax rate being $0.0624 lower than the FY 2021-22 rate of $1.337, the rate approved by the district this year will bring in more revenue to the district because of rising property values. A successful VATRE would raise the average homeowner's tax bill by $453 annually, while an unsuccessful VATRE will result in a tax bill $72 more than last year's. The VATRE increases the M&O por- tion of the rate by $0.0726, and reduces
COMAL ISD
183
46
80
123
N
SOURCE: LEANDER ISDCOMMUNITY IMPACT
Trustee Gloria Gonzales-Dhola- kia along with four other trustees— who were also in favor of the pay increases—were in support of holding a VATRE despite the possible risks. “Yes, it’s a gamble … we’re gam- bling on our educators. We’re gambling on our community,” Gon- zales-Dholakia said at the Aug. 18 meeting. “We’re gambling for this community to come together and support this district that we love.” Claire Shoop contributed to this report.
For more information, visit communityimpact.com .
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