TAX RATIFICATION ELECTIONS DO’S AND DON’TS

HUTTO ISD’S EXPERIENCE

TRE - DEFINITION

Texas law requires school districts to calculate two tax rates -- the effective tax rate and the rollback tax rate -- after the district receives the certified appraisal rolls or certified property value estimates from the certified appraiser. Generally, if a school board adopts a tax rate above its rollback tax rate, it must hold an election to ratify that rate. If a majority of the votes cast in the election favor the proposition, the tax rate for the current year is the rate adopted by the board. If the proposition is not approved, then the board may not adopt a tax rate for the current year that exceeds the rollback rate. 

DO’S Factually promote district

accomplishments Factually promote FIRST distinctions,

credit ratings Give background info on state funding

(How did we get here) HB 1 froze school district revenues at the 05-

06 level w/no inflationary factors 09 Legislature provided minimal relief giving

districts an extra $120 per student but required mandated raises

11 Legislative session cut education funding Give factual information on state funding

cut impact to your district

DO’S Communication Plan

Community Budget Forums Superintendent Coffee and Donuts Presentations to social organizations – Lions

Club, Rotary Presentations to Booster Clubs, PTO’s, etc Website Info/Facebook/Emails Prepare articles, press releases, columns,

etc.

DO’S

What will your additional pennies raise-State/Local

Share this info!Addtl Pennies State Local Total Addtl Revenue.01 = $206,313 $139,687 $346,000.02 =$293,626 $279,374 $573,000.03 = $321,939 $419,061 $741,000.04 = $347,252 $558,748 $906,000.05 = $371,565 $698,435 $1,070,000.06 = $391,878 $838,122 $1,230,000

DO’S

Inform voters of tax impact on average home values

Taxable Home Value$100,000$110,000$120,000$130,000$140,000$150,000$160,000$175,000$195,000 $9.75 $117.00

$72.00$78.00$84.00$90.00$96.00$105.00

$6.00$6.50$7.00$7.50$8.00$8.75

.06 Cent Tax Increase on Average HISD HomeMonthly Increase Yearly Increase

$5.00 $60.00$5.50 $66.00

WHAT HAVE WE DONE?Thinking “Outside the Box”

Revenue Generation Measures• School Bus Advertising

• School Bus Chartering (Non-profits only)

• Trademarking of Mascot

• Extra-Curricular activity fees

• Tuition Based Pre-K Program (save positions)

• Online School Store

• Land for Sale

• Buildings for Lease

• VHES building leased to Temple College/TSTC

• NEW REVENUES: $217,000

WHAT HAVE WE DONE?

Educating More with LessEducating with

07-08 $$:

07-08 Enrollment: 4,350 $ spent per student: $6,99807-08 Budget: $30,442,177

11-12 Enrollment: 5,653 $ spent per student: $6,52711-12 Budget: $36,898,121

11-12 Budget using 07-08 $ spent per student: $39,559,694

1,303additional students

with$2,661,573 fewer dollars since 07-08. Does not include

inflation adjustments.

DO’S Discuss importance of Fund Balance and

why needed Credit Rating, cover unexpected costs,

financial stability, etc

DO’S

Explain the two school district tax rates: M&O – Salaries, utilities, supplies,

equipment etc I&S – Capital improvements, Land,

Buses, Schools

DO’S

Discuss what happens if TRE fails Only give factual information EXAMPLES – Larger class sizes, impacts future

raises, reduce art/music at elementary level, implement extracurricular fees, implement bus transportation fee, no travel for band/cheer to away games, eliminate instructional fieldtrips, etc.

You are not alone: 1.17 = 253 Districts +1.04 = 52 Districts 1.04 = 625 Districts Hutto’s experience

TRE TIMELINE- 30-90 DAYS AFTER TAX RATE ADOPTED

EARLY TAX RATE ADOPTION (Not in Nov) Appraisal Districts are required to prepare and

certify an ESTIMATE of taxable property by April 30th

Upon receipt of estimated values, school district may adopt a tax rate BEFORE the budget & receipt of certified appraisal roll (July 25th)

If Districts use this method, effective and rollback tax rate calculations shall be based on the certified ESTIMATE of taxable property values.

District must publish NOTICE and hold a public meeting to discus proposed tax rate. Following adoption of tax rate, district must publish a 2nd Notice and hold another public meeting before the district may adopt a budget.

EARLY TAX RATE ADOPTION (CONTINUED) Districts authorized to order a TRE with as few as

30 days notice, after adoption of tax rate. Notice of TRE must be provided to county clerk of each county no later than the 30th day before the rollback election day. All other election requirements and deadlines the same as traditional TRE.

TIMEFRAME April 30th – Deadline for district to receive certified

estimate of tax rolls from CAD Publication of notice to discuss proposed tax rate:

Not EARLIER than 30 days or LATER than 10 days prior to rate adoption

Rollback Election: 30-90 days after date of adoption

TRE TIMELINE – TRADITIONAL For Election held in Nov (uniform election date), election

must be ordered at least 62 days prior to election day. July 25th – Deadline for Chief Appraiser to certify appraisal

rolls to school districts Publication: Publish Notice not earlier than 30 days or later

than 10 days prior to rate adoption. Can ADOPT a tax rate as early as August 4th if publish by

July 26th Rollback Election: 30-90 days after date of adoption. Adopting a tax rate after Aug 7 will put Nov 6 in the 30-90

day window, requiring a district to hold its TRE on Nov 6, 2012

If a district adopts a tax rate using certified rolls, a TRE must be ordered at least 62 days before it is held.

CONSULT AN ATTORNEY REGARDING TIMELINES

DON’TS

Campaign for your TRE – FACTS ONLY!! Assume there is no opposition

Voter Apathy Tea Party Movement – (Government

spending, no new taxes) Outside Groups

Assume your TRE will pass Be afraid to get all factual information

to voters – “What happens if TRE Fails” PAC – Needed or Not

DON’TS

Uniform Election Date – Nov (Big Gamble)

Let community forget information – Spring – Election day. COMMUNICATION TIMELINE IMPORTANT

Ignore rumors and perceptions Forget local legislators

QUESTIONS, COMMENTS?

eduardo.ramos@hutto.txed.net emily.grobe@hutto.txed.net