Round Rock ISD’s board of trustees unanimously adopted a budget in which $379.8 million in revenue would be offset by $388.3 million in expenditures during the 2016-17 school year.

Corey Ryan, executive director of communication and community relations said the one-year budget deficit of $8,543,657 would be manageable because of the district's reputation for “stellar financial management.”

“We'll be able to cover the budget through annual cost saving opportunities, such as staff attrition, and through our funding reserves,” Ryan said.

In a presentation to the board June 23, Chief Financial Officer Randy Staats said tax collection accounts for more than 80 percent of the school district’s revenues. Another 11 percent, or $42 million, comes from state funding.

Salaries and benefits make up nearly 80 percent of RRISD’s annual expenditures. The teacher retirement system accounts for another 4 percent, or $16 million.

The budget also includes a 2 percent salary increase for teachers and other district staffers, totally $5.9 million. Staffing the new Joe Lee Johnson Elementary School at 2800 Sauls Drive will cost $1.5 million, and the new Early College High School will cost the district $1.15 million.

After the meeting, Staats said the district has historically spent less than budgeted, so the deficit may never be realized.

“The adopted deficit budget of $8.5 million is manageable. This represents only 2 percent of the total appropriated expenditures,” he said.

Proposed tax rate

Staats also discussed a tax rate of $1.3325 per $100 of property valuation at the June 23 meeting. Staats said data from the Williamson and Travis central appraisal districts show property values are estimated to increase by 11.2 percent. That is an increase of $3.1 billion in taxable property values, he said, about $750 million of which come from new property, he said.

Staats said $1.04 per $100 of property valuation is the portion of the tax rate reserved for maintenance and operations; $0.2925 per $100 of property valuation is used for debt service.

The proposed tax rate is the same as it was in the 2015-16 school year, but because property values will likely rise, homeowners could see a higher tax bill if the rate is adopted. The board will likely vote on the tax rate at its August meeting.

RRISD will close from June 27-July 8, Board President Paul Tisch said.