By: Tom Behrens
The Katy ISD Board of Trustees called for a Voter-Approval Tax Rate Election (TRE) to fund increases to teacher and staff pay. Texas Education Code requires school districts to conduct an efficiency audit before seeking voter approval to adopt and Maintenance and Operations (M&O) tax rate.
Texas law requires school districts to reduce their local maintenance and operation tax rate once they reach a certain level of property value growth. For Katy ISD, the state is calling for a 4.7 reduction to the District’s current M&O tax rate of $0.9617. Katy ISD Board of Trustees is asking voters to sustain this year’s M&O tax rate at 0.9617 – meaning if the referendum is passed, taxpayers would see no change to their current tax rate.
The State of Texas basic allotment per student is $6,160 and has not changed since 2019. What has changed is Texas school finance law that now requires school districts to reduce their M&O tax rates once they reach a certain level of property value growth.
Other revenue sources and expenses:
Federal programs require Katy ISD to include Title I, Part A; Identification and Recruitment of Migrant Students; Attendance and Opportunities for Students in Homeless Situations; reopen and sustain operation of schools impacted by the coronavirus pandemic (ESSER); and provide services for eligible provide school students and teachers (ESEA).
Title I, Part A assists schools with high concentrations of students from low-income families. Under the Migrant federal requirement Katy ISD has certain responsibilities related to identification and recruitment of migrant students on an annual basis. The Homeless program requires ensuring the identification, school enrollment, attendance, and opportunities for academic success for students in homeless situations. Private School Participation for Federal Grants requires services for eligible private school students and teachers. Elementary and Secondary School Emergency Relief Plan of 2021 purpose is to help safely reopen and sustain the safe operation of schools and address the impact of coronavirus pandemic on students.
Funds provided by the Federal Government include an Instructional Material Allotment, an Instructional Material Allotment geared for technological equipment and technology related service, Elementary and Secondary School Emergency Relief, and Discretionary Grants.
At the July School Board Meeting, the projected 2022-23 budget provided the summary:
Revenue:
General-Property Taxes and other Local Revenues: $721,063,338
State Program Revenues: $424,700, 244
Federal Program Revenues: $38,221,383
Expenses: $1,199,720,834
Tax Rate Election (TRE) funds would not go towards the District’s deficit. If the TRE is approved by voters, the M&O tax rate would remain exactly the same as the 2021-2022 rate.
Residents aged 65 and older will not be impacted by the passage of a Tax Rate Election.
Keeping the 4.7 cents in the existing M&O, and additional $23.6 million in local tax revenue will be generated.
Managing the educational needs:
With no other means to handle rapid inflation, especially in a fast-growth district, Katy ISD is challenged to fairly compensate its current educators and be able to add new teachers and staff to meet the demands created by growth.
“The Board has been discussing these funding challenges, as well as reviewing options to increase teacher and staff pay, even as we contend with budgetary constraints,” said Greg Schulte, Katy ISD Board President. “It’s a priority for our Board to ensure Katy ISD can sustain its current educator workforce and continue to recruit and retain top-tier employees,” added Schulte.
Katy ISD has more than 90,000 students. The District employs over 11,000 teachers and support staff. This includes about 5,800 teachers and 5,700 staff such as classroom paraprofessionals, counselors, nurses, librarians, bus drivers, principals, custodians, maintenance, and other employees. Approximately 200 teacher positions are currently vacant, and over 100 custodial and maintenance positions.
Texas public school funding remains stagnant and, for Katy ISD, has been reduced across critical revenue streams. Reductions in state funding, alongside inflation, have put a significant strain on the District’s budget and the ability to provide future teacher and staff pay increases.
The Board of Trustees made the important decision to prioritize teacher and staff pay increases so Katy ISD can keep its high-quality teachers and staff in Katy. There is a tremendous demand for highly qualified employees across the region and Katy ISD must complete with neighboring school districts. Katy ISD will hold the Tax Rate Election on November 8, 2022. Additional information about the Katy ISD Tax Rate Election can be found at the Katy ISD Tax Rate Election website.