Facing a budget deficit, Eanes ISD continues discussion on the significance of golden pennies

Eanes ISD Chief Financial Officer Chris Scott presents an overview to the board of trustees regarding the budget ramifications of House Bill 3. (Amy Rae Dadamo/Community Impact Newspaper)
Eanes ISD Chief Financial Officer Chris Scott presents an overview to the board of trustees regarding the budget ramifications of House Bill 3. (Amy Rae Dadamo/Community Impact Newspaper)

Eanes ISD Chief Financial Officer Chris Scott presents an overview to the board of trustees regarding the budget ramifications of House Bill 3. (Amy Rae Dadamo/Community Impact Newspaper)

House Bill 3, which passed in June, provided Eanes ISD with less financial assistance than neighboring school districts in Central Texas, and consequently, according to EISD, the district needs to evaluate current and future budget deficits.



EISD said the 2019-20 $2.3 million budget deficit was in part due to the 4.5% compensation increase allocated to all staff members June 19.



The possibility of adding to the district’s golden penny fund to make up for the lack of funds and immediate financial assistance from HB 3 was discussed during a Nov. 19 regular board meeting in a presentation by EISD Chief Financial Officer Chris Scott.



The addition of two golden pennies, bringing the district to the maximum amount of eight, could provide an additional $3.5 million to the general fund for the 2020-21 school year.



Golden pennies represent the funds that are not subject to the state’s recapture program, often referred to as “Robin Hood.” Affluent districts with a cost per student higher than $541,000 are required to make recapture payments based on the district’s taxable value, according to the Texas Education Agency. By holding onto its golden pennies, the district is able to increase its maintenance and operations tax rate without increasing the cost of its recapture payments.



In order to increase the number of its golden pennies, EISD will be required to hold a voter approval tax rate election, formally known as a tax ratification election. The district must also conduct an efficiency audit and share the results with the community 30 days prior to the election, which according to EISD is a new requirement.



Superintendent Tom Leonard emphasized even if the district does acquire two more golden pennies, residents are still likely to see a tax rate decrease in 2020-21 school year.



The district discussed various tax rate scenarios for the next five years as a result of the additional golden pennies. If EISD saw the addition of two golden pennies and no change in its debt services, the 2020-21 tax rate could be set at $1.11, assuming a 7.2% growth in assessed values. This would be a $0.07 decrease from 2019-20.



The deadline for the district to hire an audit firm is set for July 3, 2020, and the deadline for the district to call an election is Aug. 17, 2020.



No official board action was taken during the Nov. 19 meeting.

SHARE THIS STORY


MOST RECENT

The board of trustees voted to place 12.5 acres of land on the market during the Feb. 19 meeting. (Amy Rae Dadamo/Community Impact Newspaper)
Lake Travis ISD will places 12.5 acres of land on the market at 1701 Lohmans Crossing Road

The district voted to place a plot of land behind Lakeway Elementary School on the market Feb. 19.

K. Friese representative Joe Cantalupo addressed City Council on Feb. 19. (Brian Rash/Community Impact Newspaper)
Engineering firm gives presentation of Rollingwood's Infrastructure Improvement Plan

A yearlong study on Rollingwood’s drainage and infrastructure needs has produced a final update from K. Friese & Associates.

LTISD Superintendent Brad Lancaster discusses a possible extension of Vail Divide at the Lake Travis Economic Forecast Luncheon on Jan. 16. (Brian Rash/Community Impact Newspaper)
Lake Travis ISD moves forward with Vial Divide southern extension, drafting a contract with an engineering firm

The board of trustees reviewed the first draft of a contract with Malone Wheeler.

The city of Rollingwood voted Feb. 19 to ban the abandonment of motorized scooters within the city. (Community Impact Staff)
Rollingwood officially bans abandonment of motorized scooters in the city

After months of discussion on motorized scooters, Rollingwood City Council approved an ordinance banning the abandonment of motorized scooters.

Brian May, president of Vista Bank's Austin branch, addressed Rollingwood City Council on Feb. 19. (Brian Rash/Community Impact Newspaper)
Vista Bank denied request for zoning change needed to operate in Rollingwood

Vista Bank will not be adding a location in Rollingwood at this time, as votes in both the city’s Planning and Zoning Commission and City Council sealed its fate.

Johnny Hill discussed an agenda item regarding increased special education population growth during a Feb. 19 meeting. (Amy Rae Dadamo/Community Impact Newspaper)
Special education staff increases, sign-on bonuses approved by Lake Travis ISD

The board of trustees approved sign-on bonuses and the addition of three staff members within the specail education department

Robert Winovitch presented a change order request during a Feb. 19 board meeting. (Amy Rae Dadamo/Community Impact Newspaper)
Progress on Spillman Loop project discussed during Lake Travis ISD board meeting

Lake Travis ISD approved a change order request from Flintco for $723,000.

Fight over sales market data means Travis County home appraisals will not change this year, area schools may suffer

Travis Central Appraisal District will not appraise residential properties this year following a cease-and-desist order from the Austin Board of Realtors prohibiting use of its sales price data.

The Spicewood personal training studio offers private, semi-private and small group sessions. (Courtesy Fitness to Function)
Fitness to Function expands its studio located in the heart of Spicewood

Fitness to Function works to help clients stay active as the age

Lakeway City Council held a regular meeting Feb. 18. (Brian Rash/Community Impact Newspaper)
New police position, community survey, food trucks: Breaking down the Feb. 18 Lakeway City Council meeting

Mayor Sandy Cox was not in attendance due to illness, but the Feb. 18 Lakeway City Council meeting saw some lively discussion and policy action take place.

Lakeway Police Chief Todd Radford addresses City Council during the Feb. 18 meeting. (Brian Rash/Community Impact Newspaper)
Victims services coordinator position coming to Lakeway

The Lakeway Police Department will soon welcome a new victims services coordinator to its ranks due to a state grant approved Oct. 1.

Lakeway Communications Director Jarrod Wise addressed City Council during the Feb. 18 meeting. (Brian Rash/Community Impact Newspaper)
Lakeway to conduct second community survey

About 32% of residents are retired. Roughly 54% of all households have two people. Almost 69% of all residences have no children under the age of 18 living in them.

Back to top