Officials have held 30 presentations to the community and staff over the past two months discussing the VATRE. Superintendent Courtney Carpenter also had five coffee talks around the community to discuss the issue, district officials said in an email.
The context
AISD board of trustees unanimously approved calling the VATRE during an Aug. 19 meeting. The board also approved a $57 million budget for fiscal year 2024-25 with a $1.29 million shortfall and a total tax rate of $1.2869, according to documents.
The tax rate is based on a $0.077 increase in the maintenance and operations tax rate contingent upon the VATRE passing this election, but the budget does not include the $2.5 million in revenue that it would generate.
If approved, the tax rate impact for Argyle ISD taxpayers would be an increase of $77 per year for every $100,000 of taxable home value. The district last increased its M&O rate in 2012, when AISD voters approved a 10-cent tax ratification election, officials said.
The M&O rate funds school district operations, instruction, staff, transportation, maintenance, and daily operating expenses. In contrast, the interest and sinking fund, representing the other part of the district’s annual budget, is financed through bonds. Bond funds from the I&S budget cannot be used for operational costs such as teacher raises, rising utilities, increasing insurance costs, or other day-to-day expenses, according to documents.
The details
Since calling the VATRE district staff have created an online information page for the referendum. The community presentations and dialogue with residents helped staff build the frequently asked questions pages on the district website and social media, officials said.
Voters over 65 years old will not be impacted by the tax increase should the VATRE pass, according to the presentation. Additionally, staff added an interactive tax calculator on the district website for taxpayers to see the tax increase.
The M&O tax rate in FY 2023-24 was $0.7122. Without the VATRE, it would be $0.7099 in FY 2024-25. If AISD residents pass the VATRE, the M&O tax rate would be $0.7869, resulting in the annual $77 increase, according to district documents.
However, even without the VATRE, residents could still see an increase on their tax bill due to an increase in property values from 2023. Taxable property value in the district increased by $700 million since last year and officials anticipate collecting around $38.4 million in FY 2024-25 compared to $34.4 million in 2023, according to documents.
More details
AISD has adopted deficit budgets for both the 2023-2024 and 2024-2025 school years, Stewart said. This shortfall is partly because the basic allotment per student has remained unchanged since 2019, according to previous Community Impact reporting.
The district has seen utility costs increase by 51%, fuel costs increase by 44%, and insurance costs increase by 45%. In the past five years since the state funding increase, the district has seen an increase in student enrollment by 76% and experienced a 67% increase in staffing.
Around 5,378 students were enrolled in 2023 in the district as of July, according to Zonda Education data. Projections indicate continued growth moving forward with 2024 enrollment estimated at 5,805 students and 6,287 students in 2025. By 2033, the district could serve around 11,000 students.
Also of note
If approved, the VATRE would retain approximately $2.5 million to address budget priorities including teacher and staff pay raises, providing campus support positions, and addressing increasing class sizes for the future, officials said.
In June, the district approved a one-time payment of $1,000 for teaching staff, $500 for paraprofessionals and auxiliary staff, and a $50-per-month increase to health insurance contributions at a total cost of $890,000. But due to a lack of funding, the district is covering the cost by dipping into its fund balance.
The VATRE revenue would allow AISD to replenish these funds and offer a 2% midpoint raise for teachers, officials said. The board approved the raise contingent upon passing the VATRE to be implemented in the middle of the 2024-25 school year at a cost of around $885,000. For teachers, it would be a pay increase of $1,300.
Additionally, $400,000 will help offset the budget shortfall and $325,000 will help maintain classroom ratios and fund future pay increases, according to documents.
