BUDGET
2022 EDUCATION EDITION
Out of Time Fort Bend ISD o cials said the district needs to course correct its nances to avoid a projected $75.7 million shortfall by the 2024-25 school year. Before the district is a voter-approval tax rati cation election, or VATRE, designed to increase tax revenue to the district and a bond designed to address facility needs. Here is what needs to happen before either comes before voters.
2022 BOND AND VATRE TIMELINE
JULY 25
AUG. 15
AUG. 22
SEPTEMBER OCTOBER
NOV. 8
District calls a public meeting to discuss a tax rate election and the proposed tax rate.
The district will hold a public meeting to discuss a VATRE and a proposed tax rate.
FBISD plans to adopt a tax rate, call an election for a 2022 bond and call a VATRE.
The district will complete an e ciency audit, discuss the results in open meeting and post them to its website.
The bond and the VATRE will be on the ballot.
SOURCE: FORT BEND ISD COMMUNITY IMPACT NEWSPAPER
FBISD tax rate increase, bond under consideration ahead of November election
VATRE and bonds, explained
BY HUNTER MARROW
adjustments were worth $32.4 million in that year alone, according to district o cials. Lower-than-expected enrollment has also con- tributed with $26 million of the total de cit in the FY 2022-23 budget attributed solely to an enrollment shortage. Enrollment projections from demographic rm Population and Survey Analysts show in 2022, FBISD was below projections by about 2,853 students at 77,545 versus a projected 80,398. These factors have contributed to district’s need
Voter-approval tax rati cation elections and bonds both require voter approval, though each performs di erent functions.
Fort Bend ISD is considering a tax rate election to address its nancial woes while evaluating the need for a bond for the district’s capital needs. The district is contemplating up to an $0.11 vot- er-approval tax rati cation election, or VATRE, alongside a proposed more than $1.1 billion bond in the upcoming Nov. 8 election, though both must be called by the board of trustees during its Aug. 22 meeting, according to district documents. Voters
VATRE
A school district’s property tax rate is made up of a maintenance and operations tax rate and an interest and sinking tax rate . Should a district look to increase its recurring revenue through raising the maintenance and operations rate above the maximum amount allowed by state statute, then the district is required to call a voter-approval tax rati cation election. For Fort Bend ISD, a tax rate that exceeds $1.1901 triggers a VATRE .
would then need to approve each initiative in November before either went into e ect. According to a July 25 presentation from district o cials, FBISD is considering a VATRE after the board of trustees unanimously approved the district’s $768 million budget for scal year 2022-23 during its June
to continue reviewing all posi- tions vacated through attrition, contemplating cutting programs, attracting students back from charter schools and home-school- ing, and increasing recurring revenue such as through a VATRE, district o cials said. An $0.11 tax rate increase would be the highest the district could increase its tax rate,
“WE ADOPTED A BUDGET THAT HAD A $47 MILLION DEFICIT IF YOU’RE NOT COUNTING USING FEDERAL FUNDS.” STEVE BASSETT, DEPUTY SUPERINTENDENT
BOND
20 meeting. Included in that budget is a 2%-3% salary increase for teachers and other sta and a $47 million budget de cit that was o set using the district’s existing reserve and $27 million in one-time federal Elementary and Secondary School Emergency Relief funds. “A lot of factors impact our budget,” FBISD Deputy Superintendent Steve Bassett said during the meeting. “Property value growth, in ation, lower student growth. We adopted a budget that had a $47 million de cit if you’re not counting using ESSER funds.” One of the biggest factors contributing to the de cit is the FY 2021-22 budget, which had to be o set with $19 million in fund balance and ESSER funds. In that budget cycle, teachers received a 6% pay bump on average, while nonteaching sta received a 4% bump. Those compensation
according to the district’s July 25 nance report. That new rate, $1.2646 per $100 property valua- tion, would bring in an additional $62.6 million in revenue annually to the district. For residents with a property with an average taxable value of $291,266, the new rate would raise their annual tax bill by $337, according to the nancial report. “That tax rate is actually slightly less than what our tax rate was in 2020,” FBISD Finance Director Bryan Guinn said during the meeting. “It is import- ant to point out that although our residents would pay more because of property value growth, the tax rate is still relatively lower than what it was previously.” Meanwhile, a bond, if called by the FBISD board of trustees, may target $505 million in major building projects, such as rebuilds of Clements High School, Briargate Elementary School and Mission
Bonds are public securities issued by a school district to provide long-term nancing with a maturity schedule of at least three years but not more than 40 years. Used to fund capital projects such as building construction, renovations and maintenance, bonds may not be issued or taxes levied unless authorized by a majority of district voters in an election. SOURCES: FORT BEND ISD, TEXAS EDUCATION AGENCY, TEXAS ASSOCIATION OF SCHOOL BOARDS COMMUNITY IMPACT NEWSPAPER
Bend Elementary School—in addition to $558.9 million in addressing facility de ciencies and life cycle needs. The district is also targeting $5.6 mil- lion in safety and security upgrades, $6.7 million in transportation updates, $100 million in technology updates and $3.2 million in property acquisition.
15
SUGAR LAND MISSOURI CITY EDITION • AUGUST 2022
Powered by FlippingBook