Trustees voted July 18 to set its proposed 2019-2020 school year total tax rate at $1.45 per $100 valuation. That tax rate is 7 cents lower than its tax rate last year, representing the largest drop in the school district’s tax rate since 2008-09, when PfISD dropped its tax rate by 21 cents.
The $1.45 tax rate is comprised of the school district’s maintenance and operations rate and its interest and sinking rate, which directs funds for payments on the debt that finances PfISD’s facilities.
PfISD set its maintnenace and operations rate at 99 cents, down from $1.06 per $100 valuation last year. The school district proposed an interest and sinking rate of 46 cents for the 2019-2020 school year, which is the same rate it operated at last year.
Because the school board voted to publish the tax rate of $1.45 per $100 valuation for its Aug. 22 public hearing, that is the highest rate the school district can adopt for the upcoming school year, according to state law.
Trustees still hold the option to lower the tax rate after the Aug. 22 public hearing.
PfISD last year adopted a total tax rate of $1.52—two cents lower than the year prior. From 2012-2017, PfISD operated on a tax rate of $1.54 per $100 valuation.
The tax rate decrease comes shortly after district trustees voted to heavily invest in boosting compensation rates for its employees.
Last month, trustees voted to use most of the $12 million in state funds awarded to the school district from House Bill 3 to increase compensation for faculty and staff.
Overall, the staff increases will cost the district more than $10 million in the upcoming school year.