Marble Falls ISD adopts budget with no tax-rate increase
DANIEL CLIFTON • PICAYUNE EDITOR
MARBLE FALLS — The Marble Falls Independent School District board of trustees adopted a 2013-2014 budget during a Aug. 26 meeting that requires no tax-rate increase.
The board approved a tax rate of $1.28 per $100 valuation with $1.0533 going to maintenance and operation and the remaining $0.2267 going to debt service.
“It’s the same exact tax rate as last year,” MFISD Superintendent Rob O’Connor said.
The rate will support a $36.5 million budget, which is down $600,000 from the 2012-2013 budget.
Under this tax rate and budget, 86 percent of the MFISD revenues will come from local property taxes with the state kicking in $4.4 million and the federal government adding $490,000.
But the state funding is basically a wash, considering the district must pay back $3.6 million to the Texas Education Agency as its recapture payment under MFISD’s Chapter 41 status. This is commonly referred to as “Robin Hood,” where property wealthy districts must send funds to the state to help Texas districts that don’t have as strong of property values.
“Basically, they recapture everything they give us. We’re funded locally pretty much,” O’Connor said.
The 2013-2014 recapture payment is about $800,000 less than the previous one.
Along with setting the rate and approving the budget, the board also voted to call a Nov. 5 bond election.
The district is asking voters to approve a $6.5 million bond that will go toward technology improvements, Career and Technology Education upgrades, and baseball and softball fields maintenance.
Because of the district’s strong financial health, if voters approve this bond package, it will require no increase in the tax rate, officials said.
Under the plan, $3.4 million will go for technology; $2.4 million will go for CTE improvements; $300,000 for sixth-grade band instruments; and $450,000 for fixing drainage for the high school baseball and softball fields.
O’Connor said if the district tried to fund these items through the regular budget, it would require MFISD to increase the tax rate by 37 cents. This, he explained, is because, under the current school finance system, MFISD would be forced to generate $9 million with about $3 million subject to recapture.
“That’s basically a 46 percent interest rate,” he said.
O’Connor said it made better financial sense to issue bonds at about 3 percent interest than take a 46 percent hit.
Trustee Karl Westerman said this bond represents a major step forward for the district.
“This just has to do with stepping up and doing what’s right for the kids,” he said.
daniel@thepicayune.com