Spring Hill ISD voters could be asked in 2025 to approve a property tax increase and bond proposals to shore up the district性视界传媒檚 finances.
District trustees on Monday discussed ways to increase revenue amid what leaders say is the state性视界传媒檚 failure to fund public schools properly. Districts across the state and region are grappling with budget shortfalls, and Spring Hill this year adopted a deficit budget.
No action was taken regarding a voter-approved tax rate election (called a VATRE) or bond proposal during Monday性视界传媒檚 meeting, but the board could move those measures forward in early 2025. District leaders have discussed potential future revenue sources since adopting the deficit budget, which they balanced using roughly $420,000 in savings.
Texas school funding has remained flat since 2019, the last time lawmakers approved an increase in the amount of money districts receive for each student. Since then, districts have faced record-high inflation, and Spring Hill性视界传媒檚 enrollment has dropped, meaning it性视界传媒檚 receiving less revenue.
Bond issues would be used to fund building repairs and other deferred infrastructure work, while a tax increase would give the district more revenue for day-to-day operational expenses, such as salaries and insurance.
District leaders could propose bonds totaling $11.780 million to be paid off during a 10-year span or $16.975 million to be paid off during a 15-year span. (The longer the period of time, the more the district can borrow. As older debt is paid off, the amount the district can borrow increases.)
Voters wouldn性视界传媒檛 see a tax increase by approving bond proposals, school leaders said. The district would be able to borrow money in the form of bonds without raising the tax rate used to pay that debt, which is the interest and sinking fund tax rate, above the maximum rate of 50 cents per $100 of property valuation.
The interest and sinking fund tax rate is one of two that Texas property owners pay to fund local schools. Interest and sinking fund tax revenue can be used only to pay down debt. The other rate 性视界传媒 the maintenance and operations tax rate 性视界传媒 funds a district性视界传媒檚 day-to-day operational costs, including payroll, insurance and more.
Spring Hill voters could be asked to approve a maintenance and operations property tax increase of 3.21 cents per $100 of property valuation, giving the district roughly $300,000 in 性视界传媒渕uch-needed性视界传媒 revenue, said Martin Cobb, Spring Hill chief financial officer. Voter approval would be required because the tax rate would be above that which the district has the right to levy on its own.
Superintendent Penny Fleet said a majority of Texas schools are considering asking voters to increase property taxes.
性视界传媒淲ith the funding formulas that we性视界传媒檝e got going on right now in the state of Texas, we don性视界传媒檛 have money left in our budget by the time we do payroll and utilities and those things,性视界传媒 she said.
Place 2 Trustee Ben Shelton criticized state lawmakers and Gov. Greg Abbott, saying Abbott 性视界传媒渄idn性视界传媒檛 do his job.性视界传媒 He said the governor and his 性视界传媒渉enchmen性视界传媒 want to privatize education 性视界传媒渂ecause they can smell the money.性视界传媒
性视界传媒淲e are having to make these hard decisions, not due to district mismanagement or not being good stewards of our money or anything like that,性视界传媒 he said. 性视界传媒淲e are doing this because the people that give us money to educate our kids have not done what they need to do effectively, not all of them, but at the top is where it starts.性视界传媒
The board also discussed charging fees to students who transfer into the district from elsewhere. No action was taken on that measure, either.
The board性视界传媒檚 next meeting is set 6 p.m. Dec. 10.
