Published: October 28, 2009 03:20 pm      

Tax increase concerns aired for MISD Board

By Libby Cluett

Lone Star News Group

MILLSAP — Millsap ISD inches closer to next Tuesday’s election when the district finds out if voters will approve an additional 13 cents per $100 taxable valuation in a tax ratification election.

But top on Monday’s MISD board meeting agenda were kudos and recognition for Millsap High School Principal Darla Henry. The Texas Association of Secondary School Principals named Henry as “Outstanding Principal of the Year,” of all the high school principals in Region 11.

MISD board members accepted a resolution recognizing Henry’s “outstanding performance.”

“Ms. Henry should be praised for her character, hard work and love she bestows on her staff and students,” states the resolution. “With the leadership of Ms. Henry, Millsap High School continues to be one of the most prestigious schools in the state.”

Henry said getting this type of recognition is possible because of “support staff and administration that you know, when you have tough decisions to make, you will have [their] backing.”

While discussion of the upcoming election was brief, one citizen shared her concerns during public forum. She addressed the board regarding information sent in a letter explaining the need for the TRE.

Paige Moomaw presented information, which she said was based on her Web-related research and a discussion with a representative from the Texas Education Agency. She said that based on her findings, she thought the board should “present a more thorough view” of election issues and figures regarding MISD’s place in the state funding system.

Among her concerns, she asserted that Millsap’s target revenue — a figure determined by the state – is not $4,715 per weighted student, as the letter stated, but she said it is “$5,093 with allotments granted by the state.”

The situation MISD faces is similar to the one Santo ISD faced earlier this month — both have low target revenue figures.

In 2006 the state changed the funding system with House Bill 1. According to one superintendent, the new target-revenue system meant that districts would get no fewer dollars than they received in 2005, but many districts also wouldn’t get more.

Millsap ISD explains in its literature that the bill froze the district’s 2006 per-pupil revenue at the 2005 level. This freeze, combined with low revenue values, leaves districts with only a few ways to raise more funds — by either adding or attracting more students, creating more weighted programs (agriculture, special education, career tech and a few others) or have a tax ratification election to raise revenue.

The bill also made schools compress their maintenance and operations tax rate down to $1 per $100 taxable property valuation, set by law. Districts could add an optional 4 cents without an election and they could have a tax ratification election, called a TRE, for up to an addition 13 cents. Only a few districts opted for smaller increases, under 13 cents, but some of these have had more than one election to reach the maximum amount. The law states that the highest a Texas school district can raise their M&O rate is $1.17.

The potential additional 13-cent revenue remains locally and is added to the school district’s ongoing maintenance and operations expenses — the side of the budget that pays for teacher salaries, fuel for buses, utilities, food, equipment and ongoing program costs.

MISD Business Manager Lori Hobbs said that Millsap needs the additional tax revenue to stay competitive with other districts in the state and area and to keep up with inflation.

Some ask about rising property values. When property values rise, unlike other taxing entities, the rising values do not help local school districts’ coffers because of the state-controlled target-revenue system.

“The only thing that helps us is if we get additional kids,” said Business Manager Lori Hobbs. “It doesn’t help MISD if property values increase because the state adjusts their allocation to us.”

Hobbs added that some districts have opportunities to offer more programs based on their higher target revenue or they can have more teachers and offer a lower student-to-teacher ratio. Both of these situations, she said, help schools attract more students, which, in turn, brings in more revenue for the district.

MISD’s target revenue is $4,715 per Weighted Average Daily Attendance — an amount established by the state. For 2009-10 the district based its budget on an attendance of roughly 692 students, with an anticipated revenue for maintenance and operations at close to $3 million.

Hobbs explained on top of the target revenue, MISD receives allotments from state and federal government sources. But these do not come directly from local taxes and, she said, they all come with strings attached. Mandates apply to all the funds and the federal stimulus money is temporary.

Regardless of who gets what target revenue, whether $4,000 or $12,000, many superintendents assert that the state funding system is not fair or equitable if some schools get target revenues that are higher than others.

Millsap states that if the TRE passes, it will receive an additional $517,000 in state and local revenue, which will “cover the 2008-09 budget shortfall and allow MISD to balance the 2009-10 budget with no additional cuts to programs or staff.

On Monday, Hunkapiller said that school administration, the board and citizens need to “listen to each other. We need to make sure we continue this thought and talk to [state] senators and representatives.

“It is very inequitable,” he added, referring to the state funding system under HB1. “Now that we’ve got this passion, we’ve got to make sure it continues.”