For over a year, conservative financial professional William “Bill” Lacy has been listening – attending board meetings, having coffee with community members and listening to what people had to say. What he’s hearing is our property valuations continue to increase, people need tax relief and there should be a better way to fund our public schools. Even with a lower District Tax Rate, we see higher taxes, more money sent to Austin and fewer of our tax dollars returning to Katy.
He listened. He asked questions and did some research. One thing he found was a couple of “Golden Pennies”. Over $7 million of our tax dollars are just sitting there, in plain sight, waiting to be brought back to Katy. Now we just need to be bold and bring them home.
IT’S OUR MONEY
The Texas Education Code refers to it as “recapturing”. Basically, this is a diversion of your property tax money to the state’s General Fund. Just another flaw in the state’s education funding formula. What we’re talking about is a process to bring up to $7.2 million dollars of our tax money back to our District, to help our community, not the rest of the state.
WHAT EXACTLY IS A GOLDEN PENNY?
A Golden Penny is an exemption available to some wealthy districts, from paying into the Robin Hood system. Basically, it’s the first 6 cents of a district’s Maintenance and Operations (M&O) tax rate that exceeds the $1 compressed tax rate established by the state. Katy ISD already receives four of those golden pennies, but it has the potential to recapture two more – which could be as much as an additional $7.2 million dollars returned to the district each year.
WE CAN REDUCE OUR DEBT
An important part of recapturing our “Golden Penny” is that it reduces the number of dollars Katy ISD can borrow for bonds. By reducing our borrowing base, it forces the district to:
1) pay our debt down faster to open funds for future expansion;
2) work within a narrower borrowing range because it lowers the debt limit available to the district;
3) move maintenance items over to the Maintenance side of the budget, where they should be to begin with and;
4) bring more of our own tax dollars back to our community for our own benefit.
In the last six years – the timeframe these Golden Pennies have been available to the district – we would have recaptured $43.2 million dollars – that’s the cost of a future junior high school.
HOW WE GET OUR GOLDEN PENNIES?
To be eligible for our Golden Pennies, Katy ISD would need to get voter approval to change the district’s taxing formula. Currently the district’s tax rate of $1.5166 is broken down into M&O ($1.1266) and Debt Service ($0.39). To qualify for our Golden Pennies, we would need to get voter approval to take 2 cents from the Debt Service tax rate and add it to the M&O tax rate. The overall rate would stay the same ($1.5166), but the breakdown would be M&O ($1.1466) and Debt Service ($0.37).
BOARD OVERSIGHT AND DIRECTION
As your Trustee, I will work with the board and the administration to put policies into place to limit how our Golden Penny revenue can be spent. Lowering our tax rate is important and reducing our debt is critical. With the proper direction, oversight and restrictions from the board, adjusting our tax rate and reducing our bond debt are the first steps to improving the district’s financial foundation. It’s a bold move that requires the right board, the right superintendent and approval from the taxpayers.
WHERE DO WE GO FROM HERE?
First, I ask that you read more about the Golden Pennies. Ask questions and look for answers. I think you will find that through an honest transfer of information we can have the “Golden Penny” line item on the November ballot. It’s smart business and fiscally sound. The district needs to inform the community, the board needs to provide real oversight and restrictions and the administration needs to bring a solid proposal to the taxpayers in November.
HOW CAN YOU HELP?
The first step toward change is in the casting of your vote for school board. I’m running to be your representative and to look out for the taxpayers. I will work to find ways to reduce our taxes, spending and potential waste. I will be your voice.
To be successful, I need your help. I ask for your support and your vote. Election Day is May 6.
BIO: Bill Lacy is a Senior Loan Officer in the mortgage banking profession. Bill has a degree in Business Administration from Louisiana Tech University. He has been a resident of Katy for 21 years. His children are graduates of Taylor HS, Cinco Ranch HS and Katy HS. Along with his wife Patti Lacy, he is involved in numerous community organizations and coordinated charity golf tournaments. Bill is an active member of Westland Baptist Church where he has served on their board, led Sunday School Classes for both adults and children as well as being an AWANA leader. He is a volunteer with Katy Christian Ministries, Katy Visual and Performing Arts, volunteers with the Candlelighters Organization, rides with The Patriot Guard Motorcycle Club, is a member of the Katy Athletic Booster Club, former member of the Taylor HS Pacesetter Booster Club and the Cinco Ranch HS Theater Booster Club. He is an avid golfer, cook, parent and grandparent.