What you need to know
At a June 17 board meeting, GISD's Chief Financial Officer Jennifer Hanna presented a budget proposal for the upcoming fiscal year based on an operating budget of $150.39 million with a maximum total tax rate of $1.0567 per $100 of valuation.
Trustees unanimously approved the proposal, which funds the operations of the district.
The details
The FY 2024-25 tax rate includes the maximum maintenance and operations rate of $0.6992 per $100 of valuation and a debt service rate of $0.3575 per $100 of valuation.
The M&O rate will fund the district's operating budget, while the debt service rate will fund debt payments for the district, including the $0.01 per $100 of valuation approved by voters to fund the 2024 bond package in May.
At a June 3 board workshop, Hanna said the M&O rate, set by the Texas Education Agency, could potentially decrease depending on the valuation of property located within the school district's bounds. If the overall property values have increased substantially, this rate could decrease.
The tax rate will be finalized in time for the board's August meeting, she said.
What else?
The approved budget also includes a shortfall of $4.59 million, Hanna said.
The shortfall comes amid increased costs of operation, as well as funding from the state that remains the same per student as it was in 2019, despite the rise in inflation.
In previous discussions related to the district's budget, Superintendent Devin Padavil has said that the basic allotment funding of $6,160 per student—prorated for the district's average daily attendance rate—would be over $7,160 per student if adjusted for inflation. Padavil said this adjustment would result in about $12.6 million in additional revenue to the district's budget, were legislators to make it.
What's next?
The board of trustees will ratify its final tax rate at a future meeting in August.
