Two years after the Legislature cut school property taxes by a third, more than 100 school districts – including several from North Texas – will try to persuade voters this fall to bump their tax rates back up.
And a majority of those districts have found a way to avoid a tax rate election on the same day as the Nov. 4 general election, improving their prospects for voter approval of higher property taxes. Most are holding elections in early October.
The 103 school districts – about one in 10 statewide – say they are being squeezed financially and have to increase taxes to meet basic expenses and give their teachers a pay raise. Among them are the Austin and Corpus Christi districts.
“Most districts are hurting,” said Clayton Downing, president of the Texas School Coalition and former superintendent of Lewisville schools, noting that many districts in need of more revenue probably decided against a tax rate election this year because of the worsening economy.
“While most people still support their local school district, many are in no frame of mind to run out there and vote for higher property taxes when they’re paying $3.50 a gallon for gasoline and seeing their grocery and medical bills go up and up,” he said.
Among the Dallas-area school districts seeking approval of a tax rate increase is Duncanville, which is taking its case straight to voters in town hall meetings and appearances at business and homeowners groups.
“We’re facing the same issues as many districts in the state,” said Tammy Kuykendall, a district spokeswoman. “Our funding level has basically been frozen since the 2005-06 school year, and we’ve cut our budget by $3 million over the last two years to offset inflation costs and give our employees a raise.”
Duncanville, which now has a tax rate of $1.04 per $100 valuation, is seeking an increase to the maximum rate currently allowed for operating expenses – $1.17. Most of the districts holding tax rate elections this fall are seeking the maximum.
Even though the proposed increase is steep, Ms. Kuykendall said district officials “have been very encouraged by the community’s willingness to have a dialogue” over the proposal.
The situation is similar in the Cedar Hill school district in southern Dallas County. Cedar Hill also is going for the maximum.
“This will allow us to meet inflationary needs and give teacher raises until the 2010-11 school year,” said Mike McSwain, chief financial officer for the district. “This is the only chance we have at additional funding.”
Both districts are holding their tax rate elections on Oct. 7, four weeks before the general election on Nov. 4. State law allows school districts to have the earlier election if the local school board authorizes it at least 60 days before the election date.
School officials said they want the issue of property tax rates to be considered separately from the general election, when voters will be casting ballots for president and a variety of state and local offices.
But critics said school districts holding the earlier election are using a loophole in the law to limit turnout and give themselves a better chance of passing a higher tax rate.
“Holding a tax rate election in October is a clear indication that they don’t want a large number of taxpayers participating in the decision,” said Peggy Venable, Texas director of Americans for Prosperity, a taxpayer group.
“What they want is to have most of the voting done by school employees and those who support the district in raising taxes,” she said. “That spells higher taxes for all taxpayers.”
Ms. Venable called the election option a loophole – “an end run around taxpayers” – that needs to be closed.
Catherine Clark of the Texas Association of School Boards said an earlier election is preferable because local school officials need to know whether they can count on the additional revenue from a tax increase to meet expenses.
“It only makes sense to get that decision in front of voters as soon as possible,” she said. “If voters turn the proposed tax rate down, the district can make adjustments in its budget.”
In Duncanville, for example, a defeat at the polls would force the district to consider such things as elimination of the high school’s block schedule and initiation of fees for extracurricular activities.
This is the second year that school districts have been required to get voter approval for a tax increase under a school finance reform law passed by the Legislature in 2006.
The law, passed in response to an order from the Texas Supreme Court, required districts to lower tax rates from a maximum of $1.50 to $1 that year – not including up to 50 cents extra that can be levied to pay off construction bonds and other debt.
Districts were allowed over the last two years to raise tax rates an additional four pennies – up to $1.04 – without voter approval, and most took advantage of that option. Beyond that, districts can raise their tax rates to a maximum of $1.17 – but only with voter approval.
Last year, three-fourths of the 115 districts that went to voters got approval for a higher tax rate, including a large number that got the maximum.
Credits: Dallas News