Austin ISD could implement a 1.85-cent decrease in its tax rate in fiscal year 2015, board of trustees President Vincent Torres said at the board's June 2 meeting.

The board is considering a budget projecting $893.5 million in expenditures and other uses and $871.2 million in revenue, along with the lower tax rate. At the June 2 meeting, AISD Chief Financial Officer Nicole Conley presented a revised FY 2015 budget that proposes the use of $22.3 million in reserves to offset projected revenue shortfalls.

Trustees discussed several parts of the district's budget plans, including a possible salary adjustment on the horizon for teachers and other employees. Michael Houser, the district's chief human capital officer, told trustees that most other area school districts are planning some kind of pay increase for their staff in the future.

"We are falling further and further behind," he said.

He noted some teachers involved with the district's REACH program, which provides teachers with stipends based on students' performance, could be facing a salary decrease. It is imperative that the district look for new revenue streams, he said.

"If we can figure out how to pay our teachers more, I'm all for it," trustee Amber Elenz said.

Trustee Robert Schneider said he wants to schedule a board discussion about the district's priorities soon, as it will help to inform budgetary decisions.

The board is scheduled to take action on the budget in August, Conley said.

Tax rate

Tax rates are made up of two parts: maintenance and operations (M&O) and interest and sinking (I&S). For AISD, the two rates are $1.079 and $0.163 per $100 of valuation, respectively. They combine to make up the current tax rate.

Information provided in April 2014 showed a projected increase in property tax values, so as a result the district is proposing a $0.0185 decrease in the I&S tax rate in FY 2015. The FY 2014 current I&S tax rate of $0.1630 per $100 of taxable value would decrease to $0.1445 per $100 of taxable value in FY 2015. However, the budget also states this may change as AISD continues in the budgeting process and seeks strategies to meet district funding needs, including a possible tax ratification election.

According to state law, a school district must hold a TRE to raise its M&O rate above $1.04 per $100 of property valuation. AISD held a successful TRE in 2008 and raised its M&O rate to $1.079 per $100 of valuation.

State law requires school budgets be approved by Aug. 31.