In a nutshell
This year’s budget, which came in at a little less than $268.1 million, includes:
- $215.1 million for the general fund
- $42 million for debt service
- Around $11 million for food services
According to district documents, the increase is mostly tied to:
- Refreshing student 1-1 devices
- Employee salary increases
- Insurance
- Additional staff requests, among smaller items
The district’s tax rate remains up in the air as officials contemplate whether to hold a voter-approved tax rate election, also known as a VATRE, which could increase the district’s tax rate by almost $0.09 and potentially add $11.4 million to the district’s coffers, PISD Chief Financial Officer Jorgannie Garza Carter said.
During fiscal year 2022-23, the district’s tax rate was at $1.3027 per $100 valuation, according to district documents.
Officials are eying a rate of $1.2427—a rate that is down from last year but would more than likely still trigger the need for a VATRE.
Despite the tax rate being all but certain to drop, due to increased property values, it’s expected the average residence’s tax bill would go up by about $227 if the VATRE were passed, according to district documents.
Diving in deeper
A VATRE could help make up almost all of the district’s anticipated shortfall for this year’s budget.
District officials will move forward with its property tax rate at its August meeting, and, if necessary, an election would be held in November.
To have the VATRE, a super majority of the board is needed to approve the tax rate beyond the threshold certified by the state, Carter said. If the measure were to fail at the ballot, the district’s tax rate would fall back to the certified rate.
It’s projected that threshold could be around $1.1527, which represents a $0.15 decline from last year, according to district documents. However, Carter said at the June 23 meeting it will probably come in a little lower.
If district officials were to choose a VATRE, it would still leave the district with a shortfall, but Carter in the past has said it’s likely the district could make that up throughout the year.
Similar to other districts, PISD officials are also waiting to see if the state will take any action to provide more funds.
“The state hasn’t done us any favors,” Superintendent Larry Berger said at the meeting.
What they’re saying
Before the vote, Berger gave a rundown of the district’s needs, saying some among the board had been “distrustful” of the numbers presented to them in the budget.
While some board members previously had questioned why the budget was increasing at such a rate despite enrollment either declining or staying stagnant, Berger made the case that students still need services and cited cuts made in previous years.
“We love celebrating success, but success is not free,” Berger said.
Trustee Crystal Carbone, who has previously suggested there were potential cuts in staff that could be made, said at the June 23 meeting she had changed her mind about the district’s staff being bloated and suggested she might support a VATRE.
“I still am very much struggling with [the VATRE],” Carbone said. “But I don’t think it’s my right alone to have my vote of what I may or may not choose at the ballot box hold anyone else from making that choice.”
The context
The district adopted a similar budget last year of $243.4 million and expected to have a $7.37 million shortfall. However, due to enrollment being higher than expected, changes to the tax rate and interest rates going up, the district expects to close the year with a surplus.
If the board opts against calling a VATRE, Berger at the meeting said officials might want to consider bonds—either facilities or technology bonds—to make up the difference.
The district most recently called a VATRE in 2021, which the community supported. The vote added $7.4 million to the district’s coffers.
