New Braunfels | October 2023

Officials: Tax rate would prevent shortfall From the cover

The backstory

What you need to know

Cost to taxpayers

If the VATRE is approved by voters in November, the tax rate for FY 2023-24 will be a $0.1535 reduction from the tax rate approved by the board last year, compared to an $0.1835 reduction if voters reject the proposition. Because lawmakers decided to compress, the taxpayer will see an average decrease of 14.63% on their tax bill, according to the district. “The decision to call for the VATRE did not come lightly,” NBISD Superintendent Laurelyn Arterbury said. “Without the additional three pennies, the district would have a $4.5 million budget deficit if we continued to offer at least the same level of educational programming for our students.”

Since the adopted tax rate for fiscal year 2023- 24 of $1.0419 per $100 valuation exceeds the voter-approval tax rate by 3 cents, New Braunfels ISD is required to hold an election for the new tax rate adopted by the board of trustees. The state had a record budget surplus this legislative session that was partially used to fund reductions in school district tax rates and a proposed increase in the homestead exemption from $40,000 to $100,000. According to district officials, school district tax rates were compressed—or reduced—by as much as $0.18 per $100 valuation across the state.

Average taxable home value

Average tax payment to NBISD

2022-23

$316,508

$3,784

2023-24 with no VATRE

$2,824 -25.37%

$279,045*

2023-24 with VATRE

$ 2,907 -23.18%

$279,045

*NBISD ESTIMATES AVERAGE TAXABLE HOME VALUE WILL REDUCE BETWEEN 2022-23 AND 2023-24 DUE TO EXEMPTIONS APPROVED BY STATE LAW

Reason for the election New Braunfels ISD is slated to have a $4.5 million budget shortfall for fiscal year 2023-24. To offset the projected shortfall, the board called for a voter approval tax rate election, or VATRE, on Nov. 7.

SOURCE: NBISD, COMAL COUNTY TAX OFFICE/COMMUNITY IMPACT

Understanding the ballot language

An $18 billion tax relief package was passed by Texas lawmakers July 13 through Senate Bills 2 and 3. As a result of this, Lt. Gov. Dan Patrick said the average homeowner will save around $1,200-$1,450 on their 2023 tax bill. Voters will have the opportunity to vote on a constitutional amendment in the plan—Proposition 4—in the Nov. 7 election. “While the tax rate has been reduced, NBISD has not seen an increase in school funding and, with inflationary impacts, is facing a deficit,” NBISD Board President Eric Bergquist said. “If the VATRE passes, the revenue generated will help maintain current academic programming and retain and attract high-quality staff.”

• The proposed tax rate of $1.0419 is 3 cents above the maximum rate without voter approval, and will fund staff raises and student programs. • The legislature’s $18 billion tax relief package will allow taxpayers to see a 14.63% decrease in their tax bills, even though legal language of the ballot requires the wording to include “will result in an increase.” • Because NBISD has not seen an increase in school funding and due to inflation, the district is facing a shortfall.

FY 2022-23 tax rate: $1.1954

Difference: $0.1535

Proposed FY 2023-24 tax rate: $1.0419

Difference: $0.03

Allowable tax rate without an election: $1.0119

Budget shortfall if VATRE fails: $4.5 million

Anticipated shortfall if VATRE passes: $2 million

Difference: $2.5 million

SOURCE: NEW BRAUNFELS ISD/COMMUNITY IMPACT

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