Round Rock ISD passes balanced budget, to call tax rate election to fund potential staff raises

The details

Chief Financial Officer Dennis Covington presented a budget projection for the 2026-27 financial year in a June 16 board meeting, showing a planned $486.1 million in expenses against $486.2 million in revenue, resulting in a surplus of $75,000. This surplus is insufficient to cover raises, district staff said in May, as the district would need around $10 million in additional revenue.

This scenario is based on a tax rate of $0.7054 per $100 of valuation, compressed from $0.8931 per $100 in the 2025-26 financial year due to increased property values.

Should the tax rate election pass in November, the additional six pennies per $100 of valuation would bring total revenues to $518.4 million and expenses to $518.3 million, leaving a roughly $75,000 surplus.

The six-cent increase to the tax rate would bring it to $0.7654 per $100 of valuation. The increase would be made up of "copper penny" one-cent increments. According to the Texas Education Agency, unlike "golden pennies," which generate property tax revenue that remains with the school district, a portion of revenue generated by copper pennies is subject to recapture. Recapture is the repayment of "excess" local tax revenue back to the state if a school district generates more property tax revenue than the state's funding formula determines it is entitled to.

Covington said the district does not expect to have to pay recapture to the state for this budget year.

What they're saying

"Please know that we know there were difficult decisions to be made, but based on the funding that we received from the state," board President Alicia Markum said. "As you heard, there are a lot of restrictions, limitations and boundaries that we have to work within that are out of our control."

Remember this?

The district last sought a tax rate election in 2023. That election, which voters approved, also sought additional tax revenue to increase compensation.

What's next?

The deadline to call for a tax rate election is Aug. 17, 78 days before the Nov. 3 election, according to the Texas Comptroller's Office.