Tuesday night, Mr. John Walch, a 38 year veteran professional educator, gave us more information about school finance. Mr. Walch started his career as a math teacher, moved up to be a superintendent, and is now a school consultant on tax ratification.

Ms. Robin Crawford told us the reason the board invited Mr. Walch is that school finance is a lot more complicated than it used to be.

Mr. Walch explained that the Texas Supreme Court, in 2005, as part of the Edgewood Decision, said it is the job of the State legislature to provide the children of the State of Texas with free, quality public education. The quality of education, by law, must be the same all over the state. At that time most of the State’s districts had a tax rate of $1.50 per $100 valuation. The State lowered the property tax rate to $1.00 for all districts. At the same time they enacted the “Robinhood” doctrine that took monies from rich districts to give to poorer districts. In order to raise the money for school finance the State lost by cutting the property tax, they raised taxes on new businesses, used car sales (dubbed “the liars tax” because so many people did not tell the truth about what they paid for a used car when they went to get the title and pay the tax), and cigarettes.

At this time the legislature also said that districts could not generate income in excess of what they had received in 2005 – 2006. If a district could “enrich” itself above that level then the State would cut its share of the tax revenue. For example, if a district has lots of new businesses to start up and has lots of oil and gas revenue then the State simply cuts its funding to keep that district at the level of its 2005 – 2006 revenue.

Because of the rise in the costs of energy, most districts are in need of more money. There are only two factors that produce more money for a district: more students, or raise the tax rate. The State guarantees that every penny of increase in the tax rate will bring increased returns on our investment in the district. The State will provide $199.94 state dollars for every $100 TISD dollars. That is a 20% increase on our investment. In all, if the tax rate is approved we can generate $466,000 for the district this year; $212,000 from the local property tax plus $254,000 from the State. If we don’t approve the tax increase, we lose $20 for every $100 we raise locally.

Everyone’s tax bill has increased because of the increase in property values. The average homeowner’s tax bill will go up $26.19 regardless of the tax election. The taxes of those over 65 and the disabled were frozen by the state. The tax election will not raise or lower their taxes. If we defeat this tax election, the average savings to homeowners will be about $45 dollars per year. We will pay more taxes on new businesses, cigarettes, and used cars, but that money will not go to TISD, if we do not approve the tax election. That money will go to other districts.

Economists say that new dollars in a community “bounces” around the community about seven times. That means our community could realize about $1,778,000 increase in the local economy. The total impact of the districts tax revenue at $466,000 would be about 3.2 million community wide.

Dr. Moore closed the meeting by saying that this election comes at a bad time because of the national economic crisis. What we need nationally and locally is for our leaders to give us some straight talk. This meeting was to inform the people of TISD of the needs of the children. TISD is in good financial condition and the Superintendent and the Board is trying to keep it that way. We must keep a Saving Fund Balance, if we don’t we will go broke. Like any other family, we must live within our means.

Dr. Moore said, “I know people are hurting. Our employees are hurting also. They need this raise. 75 – 80 % of the districts revenue goes to the employees. They are our best asset. The district is being successful academically, and we want to see it continue and improve. This election may come at a bad time, but if we want to see our current programs continue it is necessary.