For 11 years Richardson ISD has maintained a steady maintenance and operations tax rate, but in November the district will ask voters to contribute additional dollars toward its general fund—a move it says would cost the average homeowner an additional $305 per year.

“We certainly know it is not an opportune time for our taxpayers with the increases they have seen with our appraisals, but we have waited as long as we can, and this is the time when we have to go ask our taxpayers for the increase,” RISD board of trustees President Justin Bono said.

State law requires that any school district looking to set the maintenance and operations portion of its tax rate above $1.04 seek voter approval. RISD is asking for $1.17 per $100 property valuation, the maximum allowed by the state. A total proposed tax rate of $1.52 also includes 35 cents to fund the district’s debt services.

Through an annual gain of $24.5 million the district says it could maintain state-mandated staffing levels, offer competitive salaries, hire more safety officers, and sustain reasonable student-to-teacher classroom ratios.

The decision to pursue the maximum increase—based on a recommendation by the district’s finance strategic planning action team—was motivated by a combination of factors, including reduced state funding; expenditure requirements; the ability to compete with nearby school districts and industries for staff members; and the costs associated with teaching special education, economically disadvantaged and non-English speaking-students, Chief Financial Officer David Pate said.

Without additional property tax revenue the district says it would face a $54.1 million budget shortfall over the next five years.

ADDRESSING THE NEED

Despite funding challenges RISD reports its maintenance and operations tax rate is at a 27-year low.

By raising the rate RISD hopes to offset a lack of state funding, which has declined by $16.1 million since 2013-14 and in 2017-18 was projected to decrease by another $41.8 million through school year 2022-23.

“It’s important to understand how the [school finance] system works,” Bono said. “As our [taxpayer] dollars increase locally, the state equally offsets those dollars … in ’06 the state funded half of our budget; today [state funding] is at 25 percent and will drop into the teens in the next five years.”

The additional revenue would also trigger a $5.9 million contribution to recapture in 2018-19. RISD has not paid recapture­—a state system that redistributes tax dollars to “property- poor” districts—since 2009.

Raising the tax rate by 2 cents—the threshold before entering recapture—was discussed by the district; however, the net benefit retained through the maximum increase still outweighs the cost of a recapture payment, Bono said.

“Frankly all that [2 cent increase] would do is get us out of that deficit position but doesn’t address any of our current needs, so we have to look at it at an overall basis,” he said.

In 2017-18 RISD made a last-ditch attempt to prevent a tax rate increase by using $6.2 million of its reserve funds to cover salary raises, Bono said.

But when the state failed to enact any meaningful change in its last legislative session, it became clear that the bulk of school funding would have to be sourced locally.

“As a parent of a student, my viewpoint is: I don’t get a do-over for my kid while we wait for the state to sort out what to do with school finance,” said Greg Duval, parent of a Lake Highlands High School student and co-chairman of the Vote For political action committee. “At the local level we fix it by taking on more taxes.”

Those who oppose the tax rate increase claim the average home’s market value of $288,794 does not accurately represent the majority of homes in Richardson.

“I don’t know where that house is,” said Roger Pryor, a Lake Highlands resident, at an Aug. 20 board meeting. “[The tax election] is going to cost my neighbors a fortune.”

PASS versus FAIL

If the new tax rate were to pass, the district says it would increase teacher and staff salaries by 2.5 percent, hire additional safety and security staff and special education personnel, raise wages for hourly workers and maintain class sizes.

In recent years the district has struggled to offer salaries that compete with its neighboring districts, according to reports by the Texas Education Agency. In school year 2017-18 the average base salary for RISD teachers was $54,736— about 3-5 percent lower than Garland, Dallas and Plano ISDs.

This salary gap has led to a departure of experienced teachers in search of better compensation, Duval said.

“I believe retaining high-quality teachers directly affects my daughter’s education. … That experience means something, and we need to pay for it,” Duval said.

Some taxpayers believe the district is leveraging teacher salaries as a bargaining chip to garner more “yes” votes.

“At what point will RISD stop holding teacher salaries hostage and pitting taxpayers against teachers?” said Murphy McNutt, resident of The Reservation, at an Aug. 20 board meeting.

Ninety percent of the district’s general fund budget goes toward payroll, according to district documents. Future salary raises hinge on the tax rate increase, Pate and Bono said.

“You cannot make a substantial change to any school district’s budget without impacting people; that is the hard part of this job,” Pate said.

In addition to teachers, RISD also competes with various industries for skilled workers, Pate said.

“With the construction boom in the area that has happened over the years we are falling behind,” he said.

REACHING THE PUBLIC

The board originally called a Sept. 4 election, but after feedback from voters indicated more time was needed to understand the need for a tax rate increase, on July 13 the board voted to push the election to November.

As Nov. 6 approaches Bono said the district will work to inform the public by talking  to area homeowners and neighborhood associations, speaking at city functions, and hosting public meetings and forums at each high school.

“I don’t expect everybody to understand the school finance system the way we do, so that is why it is incumbent upon us to tell the story of our current financial situation,” he said.

Grooming an educated workforce, increasing area property values and attracting major employers such as Amazon.com Inc. are all reasons why RISD residents should support the tax rate increase, Duval said.

“I don’t think anyone will stand up and say, ‘I’m against a better school system. I am against keeping class sizes at the most effective level. I am against giving teachers a raise,’”
he said.

The deadline to register to vote is Oct. 9. Early voting is held Oct. 22-Nov. 2. Election Day is Nov. 6. For more election coverage, visit communityimpact.com.