On June 18, the Round Rock ISD board of trustees unanimously adopted a $374 million budget for the 2015-16 school year—a $12.7 million increase in revenue from last year’s budget.
RRISD’s revenue increase is largely because of $9 million in additional funding from the state and an increase in tax revenue from properties in the district, said Randy Staats, the district’s chief financial officer. He said district property values are expected to go up 12 percent, which would mean more tax revenue for the school district in the 2015-16 school year.
RRISD will see 676 more students in the next school year, Staats said. To account for a student body of more than 47,000, the district allocated $2 million for new teachers and staff, he added.
The budget includes $4.7 million in staff pay increases. On May 28 the board approved $1,000 raises for hourly employees and a 2 percent midpoint increase for salaried employees. In addition, more school resource officers are also being added to district high schools and middle schools to police campuses.
Staats said district staff renegotiated utility contracts for 67 percent of the district. At the June 9 budget workshop, Staats said the reduction in utility expenses is partially offset by increases in utility costs to heat and cool additional portable classrooms.
Freeport Tax Exemption
The board also approved a tax exemption June 18 meant to facilitate business growth in Round Rock.
When it takes effect in the 2015-16 school year, the Freeport tax exemption will apply to companies with inventory that is brought into Texas for manufacturing and exported out of the state within 175 days.
Although the exemption will remove an estimated $6 million from the tax roll in its first year, the Greater Austin and Round Rock chambers helped the school district break even by setting up payments in lieu of taxes, or PILOTs, with the top 26 manufacturers in the district.
The tax exemption is expected to draw more businesses to Round Rock and keep existing businesses from relocating, thereby improving the economy in the city, which would ultimately benefit the school district. The city of Round Rock and Williamson County both exercise the exemption.
Staats said about 40 companies in the district manufacture freeport goods, including Dell. The exemption will likely result in a slight increase in residential property taxes—about $1 per month, he said.
