Georgetown ISD staff: Tax relief legislation not expected to significantly impact next budget

Georgetown ISD staff members say recent legislation providing property tax relief to homeowners is not expected to significantly impact its upcoming budget year. The district's chief financial officer, Jennifer Hanna, said at a Dec. 4 workshop that this is due to a reduction in recapture payments tied to lower property tax collections.

What you need to know

In November, Texas voters approved a ballot measure raising the value of the homestead exemption from $40,000 to $100,000, lowering both their tax bill and the amount of local tax revenue to be received by school districts such as GISD.

Hanna provided a preliminary budget update ahead of the district's annual budget setting process, and said that in addition to the lowered recapture payments, the district would benefit from increasing enrollment. Budget projections for the upcoming 2024-25 school year were not shared as part of this update.

The backstory

U.S. census data shows Georgetown is a fast-growing area, with demographic projections showing GISD is expected to add nearly 500 students in the 2024-25 school year.

Prior to the passage of property tax relief measures in November, Hanna said under SB 2 the district would receive approximately $2.5 million in funds annually from the state for a period of five years. These funds would be used to offset reduced tax revenue caused by a larger homestead exemption.