The Argyle ISD board of trustees approved the fiscal year 2023-24 proposed school tax and budget rate during the meeting Aug 21.
Background
In 2019, Argyle ISD was one of 100 districts to receive formula transition grants, which the Legislature approved in House Bill 3. The grants were given to districts that were not covered under the original HB 3 finance system. AISD Chief Financial Officer Liz Stewart said the district needs to receive the same level of funding or higher as in 2019.
AISD previously received a formula transition grant, and in 2021, a statewide limit of $400 million per year was established with FY 2023-24 being the last year of funding for Argyle ISD.
During the July 22 meeting, Stewart said without legislative action, the district could lose funding in FY 2024-25 when the formula transition grant—state-provided funds that give districts a 3% increase in funding per student—runs out of money. If nothing is done during the special session, the district could lose $3.5 million this year.
“We can’t wait around and hope that something happens in the special session,” Stewart said. “This is a significant portion of our budget.”
Also of note during the July 22 meeting, all six trustees with the exception of board President Sam Slaton approved raising compensation for faculty for FY 2023-24. The overall cost of raising faculty pay is $1.3 million with a 3% general pay and midpoint market increase, meaning a $1,900 increase for teachers and librarians. Level I aides’ and student nutrition employees’ pay was raised to $15 per hour, and Level II aides’ pay was raised to $16 per hour.
Zooming in
According to the Texas Education Agency’s website, the basic allotment is defined as “the legislatively mandated apportionment of funds from the general revenue funds that goes to each school district.” The amount, $6,160, is based on student attendance rates, which were 95%-96% in the spring. This basic allotment has remained unchanged since 2019. In July, there were concerns with a lack of developments in terms of school finance legislation.
On Aug. 21, Stewart told trustees that a special session is anticipated to be held in October to discuss adjusting for inflation. Stewart said the district’s representatives have been receptive to discussing solutions for this issue.
Regarding the special session, Stewart said in the meantime, district officials are looking at all of the district’s efficiencies and seeing how they can avoid changing programming in classrooms. If a special session is called, the district will advocate for a basic allotment increase, an extension of the formula transition grant or a combination of the two.
“We can’t just sit back and hope that something happens and just turn a blind eye to the fact that we are in a short time frame,” Stewart said.
The interest and savings rate will remain at $0.50; the maintenance and operations tax rate decreased by approximately $0.19, which Stewart said is the “largest decrease we’ve seen in a really long time” and will give relief to property taxpayers.
Quote of note
Enrollment and attendance numbers are higher than originally anticipated for October projections, Stewart said.
“I’m a little concerned with where we’re at right now just for budget purposes,” she said. “It’s great for class sizes; it’s great for space, but we’ve got to balance that for the budget.”
