Lake Travis ISD Superintendent Brad Lancaster delivered his annual State of the District address at a Lake Travis Chamber of Commerce luncheon Sept. 21. During his presentation, Lancaster discussed the projected growth of the district, its financial struggles due to the state’s recapture program, and the possibility of both a bond election and a tax ratification election in November 2017 that would cover growing expenses without raising the tax rate, he said.

Enrollment growth

Lancaster said LTISD has seen its student enrollment increase by 4,215 students—roughly 76 percent—over the past 10 years. The district is projected to continue growing at a similar rate, and he said another 5,676 students could enter the district by 2025.

“In the past seven years, our student enrollment has increased by 50 percent, but our operating budget has increased by only 27 percent,” he said.

District finances

LTISD is currently subject to the state’s recapture system, known as Robin Hood, and Lancaster said 44 percent of local property taxes collected by the district are reclaimed by the state. LTISD offers a 20 percent optional homestead exemption, and he said any increase in local revenue is offset by a reduction of state aid.

LTISD is one of many districts looking to the 85th Texas legislative session in January to possibly pass a 50 percent optional homestead exemption credit, and transportation allotments, Lancaster said. The possible elimination of additional state aid could lead to $4.4 million in lost revenue for the district, he said.

If the legislators do not favor school finance reform, the district will need to look at reducing its budget, Lancaster said.

“We have already cut over $4 million from our budget [in recent years], and it may be necessary to cut an additional $4.4 million this spring,” he said.

Possible 2017 elections

A November 2017 bond election could call for $220 million in projects, including the creation of LTISD’s third middle school and its seventh, and possibly eighth, elementary schools, he said. It would cover upgrades, renovations to existing grounds and fund new buses and technology, he said.

A tax ratification election, also a possibility for November 2017, would ask voters to approve a maintenance and operations tax rate increase, which would be paired with an equivalent decrease in the debt service rate, called a penny exchange, Lancaster said. The election would maintain the current tax rate of $1.4075 per $100 valuation, he said.

“The tax rates paid by local homeowners would not increase as a result of the penny exchange, and the district would also generate $2 million more in state aid, which would go to limiting budget cuts,” Lancaster said.