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McKinney ISD tax rate to stay the same
By Dan Eakin, deakin@starlocalnews.com
Taxpayers in the McKinney Independent School District will be glad to know that no tax rate increase is being proposed for the coming fiscal year.
McKinney ISD has proposed the same tax rate of $0.50 per $100 valuation, which was in effect for the 2011-2012 school year, for FY2013.
A public hearing on the 2012-2013 budget and tax rate was conducted at a work study meeting of the McKinney ISD school board Tuesday night. No one from the public appeared to speak.
McKinney ISD Superintendent J.D. Kennedy said the $1,211,124 more in the coming year's budget will come from the district's fund balance, so to avoid increasing the tax rate.
"Legally, we are taxing at our maximum rate without going to the voters for a TRE (Tax Ratification Election)," Kennedy said. "At this time, we do not want to even consider that because we have a fund balance large enough to cover our additional expenditure needs for next year."
He added, "We are hoping that the upcoming legislature will address the financial challenges that all school districts across the state face."
Kennedy noted that many in the district live in homes that qualify for a 15 percent homestead exemption, and that taxes are frozen for residents 65 and older.
Kennedy told the board, "The proposed budget for the 2012-13 school year marks the culmination of a process that began in November 2011. Many parties were involved in the development of the proposed budget. Principals and their site-based management teams, program directors and others submitted budget requests. I and the cabinet reviewed requests in light of available resources and made recommendations for which items to include."
He said the primary challenge of this budget was "to confront declining revenues while still maintaining quality programs."
Specifically, he said, McKinney ISD is confronted with: stagnant property values for the fourth consecutive year; a $4.9 million decrease in state funding compared to the current formula (in addition to the $10.7 million reduction this past year); elimination of $3.7 million in federal funds from the Edujobs stimulus program that was for only one year; a projected loss of $2.8 million in state aid due to a projected loss of 475 to 500 students to the new charter school; and being at the ceiling on both the maintenance/operating and debt-service tax rates.
"Overall, general fund revenues are projected to decline by $9.4 million from 2011-2012 levels," Kennedy said.
Despite financial obstacles faced by the district, some notable positives are in the proposed budget, including maintaining an adequate fund balance level, a $1,000 pay raise for teachers and other employees on pay grades 1 and 2, and a 2 percent of midpoint pay raise for all other employees.
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