The Magnolia ISD board of trustees unanimously voted May 21 to call a Tax Ratification Election for Aug. 14 to provide additional funding for campus safety, employee salaries and student programs.

The district seeks to add 10 cents to the maintenance and operations portion of its tax rate by subtracting from the interest and sinking portion of its total tax rate, Assistant Superintendent of Operations Eric Morris said. The I&S rate funds repayment of debts while the M&O rate funds daily operations.

The penny swap—as it is commonly called by school districts—does not increase MISD’s tax rate of $1.3795 per $100 valuation but provides the district with more funds for its day-to-day operations while still paying back debt and investing in students and employees, Morris said.

“Your tax rate as a property owner will not change,” MISD Director of Communications Denise Meyers said.

Although the district is not proposing a change in the property tax rate, the state requires school boards to seek voter approval if the M&O rate exceeds $1.04 per $100 valuation, as is being proposed in MISD, Morris said. Some districts seek a straight tax rate increase—raising the total tax rate—instead of a penny swap, he said.

“Our school board certainly understands that [the voters] are conservative by nature and want to limit the effects on our taxpayers,” Morris said.

If the penny swap is approved, MISD’s day-to-day operational budget would increase $4 million to $5 million in fiscal year 2018-19, according to budget projections. MISD’s general fund budget would increase to $110 million in FY 2018-19. If voters do not approve the penny swap, the general fund budget will be balanced at $106 million for FY 2018-19—a 2.4 percent increase over last year’s $103.5 million budget.

With additional funds, MISD plans to spend about $1 million on safety improvements—such as additional constables at campuses—as well as offer a 4 percent raise to employees, address staffing needs and enhance student programs, Morris said.

However, if the TRE fails, Morris said MISD will still enhance campus safety.

“[Safety] is a part of our budget either way,” he said. “We are tackling that. In essence, it is reducing the monies we have available because of that. But, that is priority No. 1.”

This will be the first TRE for MISD, Morris said.

“This is something we have talked about for a while,” he said. “We believe it is time to take control and try to do some things to take care of our district.”

Visit www.magnoliaisd.org for more information.